StarBulletin.com

Kawamoto selling Kahala houses


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POSTED: Friday, May 14, 2010

Japanese billionaire Genshiro Kawamoto, whose absentee ownership of luxury homes in Kahala created controversy in the upscale neighborhood, is trying to sell at least seven of his properties.

Local realty firm Choi International confirmed that Kawamoto has listed seven properties on Kahala Avenue through the firm, which specializes in expensive real estate.

The largest is a 58,207-square-foot vacant lot with a listing price of $17.8 million. City records show that Kawamoto bought the property for $11 million.

The other lots listed for sale through Choi International are:

» A six-bedroom, nine-bathroom home on a 47,192-square-foot lot, listed at $15.5 million and purchased for $9.7 million.
» A 35,806-square-foot vacant lot listed at $10.5 million and purchased for $9 million.
» A five-bedroom, five-bathroom home on a 22,674-square-foot lot for $3.2 million, bought at $2.34 million.
» A five bedroom, six-bathroom home on a 17,840-square-foot lot for $2.88 million, purchased for $2.34 million.
» A three-bedroom, three-bathroom home on a 20,021-square-foot lot for $2.68 million, bought for $2.7 million.
» A seven-bedroom, 10-bathroom home on a 9,241-square-foot lot listed at $2.35 million in escrow, purchased for $2.41 million.

The prices for the properties were listed on city property records. Kawamoto could not be reached for comment.

If the properties are sold, the neighborhood would probably improve, said Rich Turbin, a board member of the Kahala Community Association who was a longtime chairman of the Waialae-Kahala Neighborhood Board.

“;In general, all of his homes are in disrepair,”; Turbin said. “;If he can sell them to people who want to live in the community and will maintain them, it would be a boon.”;

Kawamoto bought 24 homes in Kahala “;lickety-split”; during the last real estate boom, he said. While Kawamoto has torn down a few homes and leased about three of them to low-income tenants, Turbin said that “;he left 90 percent of them in an abandoned state.”;

Over the last five to eight years, many of the homes have become dilapidated, he said.

“;As of November 2009 there were 48 violations of the city and county ordinances, and I believe that he owed tens of thousands in uncollected fines,”; Turbin said. “;A lot of us have scratched our heads about why he doesn't hire a responsible property manager. He certainly could afford one.”;

Rather than deal with the maintenance, Kawamoto has torn down some of the homes. Last year he demolished rather than repaired the 27-year-old Hemmeter estate he bought for $12.9 million in 2005.

Kawamoto made headlines around the world in 2006 when he leased a few homes to low-income Hawaiian families for rents that were significantly below market value. Not all neighbors welcomed the idea; however, Turbin said that “;it was better to have the tenants living in the properties and maintaining them.”;

Turbin, who lives next door to one of Kawamoto's vacant lots, said he has complained to the state Health Department about the absentee owner's overgrown weeds and bushes, which “;are high enough to attract vermin.”;

“;It's an unhealthy situation to have a property owner who is seldom in town own so many properties in a 1-mile contiguous area,”; he said. “;The property values have fallen.”;

Other neighbors have complained about graffiti, homeless squatters and the dangers of physically deteriorating property, Turbin said.

“;One of his homes has walls that are falling into the beach,”; he said.

The city has issued citations to Kawamoto for homes with litter, overgrowth of foliage, debris, unkempt sidewalks, shoreline setback violations and swimming pools not kept up to safety standards.

“;Kawamoto will not be missed,”; said Jim Carney, who lives in the Kahala neighborhood.