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Private sale talks delay Moana Vista auction


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POSTED: Saturday, September 26, 2009

The foreclosure auction for the Moana Vista residential tower scheduled for noon yesterday was postponed due to negotiations with a private buyer.

“;It appears that the private sale is moving ahead and that it is on its way to being concluded,”; said court-appointed Commissioner Sanford Murata.

The auction in front of the state Circuit Court building was rescheduled for Friday, although if the private sale is concluded, there would be no need for one, according to Murata.

The Moana Vista, a 46-story condo tower being developed by KC Rainbow II LLC on Kapiolani Boulevard, has been stalled at the 27th floor since November due to lack of financing.

General contractor Hawaiian Dredging Construction Co., which filed a mechanic's lien of $29.5 million, is foreclosing on the project.

A potential sale to San Diego developer Oliver McMillan fell through a few weeks ago. But McMillan is back at the table, negotiating a purchase of the project with Hawaiian Dredging.

KC Rainbow developed the Moana Pacific, twin oval-shaped towers just down the street from the unfinished Moana Vista, which was planned as a mixed-use project with commercial and retail on the ground floor. It is considered about 40 percent complete.

Murata offered tours of the project to prospective buyers this month and said there was plenty of interest.

The prospective buyer must set aside 124 units, either for rent or sale, at lower-than-market prices to comply with permit requirements set by the state Hawaii Community Development Authority.

HCDA, which oversees development in Kakaako, is expected to purchase a separate lot from KC Rainbow fronting Waimanu Street, which is not part of the Moana Vista sale.

Hawaiian Dredging estimates it would take from $126.5 million to $131.5 million to complete Moana Vista if work were to begin in December.

After that the estimated cost increases by about $10,000 a day.