Executive CentreA Nevada investor has outbid Citibank on 32 residential and two commercial units at Executive Centre, the downtown high rise that once belonged to Indonesian investor Sukamto Sia.
for $4 mil
Ownership of the properties
could change during
another round of bids
By Peter Wagner
But with court confirmation and another round of bids possibly ahead, ownership of the property is yet to be determined.
Clifford Laughton, president of the Reno-based Nevada Holdings Ltd. and chief executive at Honolulu-based satellite company Columbia Communications Corp., yesterday made the winning bid of $4,000,100.
Laughton's bid topped a $4 million offer by Citibank N.A., the only other bidder at a foreclosure auction at the state courthouse yesterday.
The leasehold properties include 31 residential units, a penthouse, two commercial spaces occupied by Sprint Hawaii and Fujikami Florist and 65 parking stalls.
The heavily mortgaged 41-story building, at 1088 Bishop Street also includes a 120-room Aston hotel, retail outlets including Long's Drugs and Ross Dress For Less and nearly 300 residential units.
The entire property was appraised last year at $39.5 million.
Citibank, the major creditor in a foreclosure action against one of Sia's company's, MKS Executive Partners, took possession last month of most of the 41-story building in a complex bankruptcy deal in which Sia's estate will receive about $500,000.
Citibank affiliate EXCT L.P. took ownership of about 400 units on July 28.
Sia, currently in Chapter 7 bankruptcy liquidation, originally filed for Chapter 11 bankruptcy reorganization in November 1998.
While Citibank yesterday allowed itself to be outbid by $100, the sale is far from over. Under rules of the foreclosure, new bids may be entertained at confirmation but must be at least 5 percent above the auction price.
Foreclosure commissioner John Candon said at least three parties who were silent during yesterday's auction have asked when the confirmation hearing would be. No date has been set.
Laughton yesterday said he would likely honor existing leases at Executive Centre if he remains the high bidder. He said the units are a good investment because of depressed property values and a strong rental market in the downtown area.
While Executive Centre was once a key holding of Sia in Honolulu, the bankruptcy trustee was unable to liquidate the property for creditors because Sia held no equity in it.
His ownership in the building was through MKS Executive Partners, one of his numerous companies.
The 40-year-old businessman owes nearly $300 million to casinos, banks and creditors around the world.