Developer Bruce Stark files for bankruptcy


POSTED: Tuesday, July 28, 2009

The Bruce Stark-owned company that developed Canterbury Place in Waikiki has filed for bankruptcy.

1910 Partners, a Hawaii limited partnership, filed for Chapter 11 bankruptcy Friday, listing $1 million to $10 million in estimated assets as well as $1 million to $10 million in estimated liabilities.

Among the top 20 creditors are Stark's former partner, Robert Pulley, who is owed $578,000, along with Clifford Miller, an attorney with McCorriston Miller Mukai, who is owed about $110,000 in legal fees.

Another $58,795 is owed to the city for real property taxes, and $18,428 is owed to the state in taxes.

In addition, 1910 Partners owes the Kong Estate, owners of the ground lease for Canterbury Place, a total of $4,480 in rent.

Stark, who in earlier decades developed a string of residential projects, including the Yacht Harbor Towers on Ala Moana, Admiral Thomas in Makiki and Kakaako's One Waterfront Towers, now lives in Las Vegas. He also developed Waterfront Plaza, more popularly known as Restaurant Row, in 1988.

Stark could not be reached for comment yesterday.

Both 1910 Partners and the Canterbury Association of Apartment Owners have been tied up in litigation involving unpaid rent, electricity bills and maintenance fees.

The 151-unit residential tower at 1910 Ala Moana Blvd. was built in 1978.

Though some fee-simple units are available, many are leasehold (meaning rent is also due on the ground lease), and listed from $425,000 to $999,000. The ground lease expires in 2051.

In March the Canterbury condo owners' association sued 1910 Partners alleging that Stark was no longer paying monthly expenses on commercial space he owns and leases to two major restaurants — Todai Restaurant Waikiki and Singha Thai Cuisine.

Pacific Guardian Life Insurance Co. in April filed suit to foreclose on the assets in April, alleging that 1910 Partners defaulted on a $3.5 million loan for Canterbury Place.

Kevin Doherty, treasurer of the condo owners' group, said it will petition the court to be added as a creditor.

Chuck Choi, attorney for 1910 Partners, said the bankruptcy filing was necessary to stop the association from continuing to take rent from the tenants. Close to $160,000 has been collected by the association so far, Choi said, most of it from Todai.

“;The filing was necessary to stop the association from intercepting tenants' rents of 1910 Partners,”; Choi said.