COURTESY GLENNA WONG Sales in the Harbor Court condominium development have been hampered by fee negotiations.

Harbor Court
completes purchase
of fee from city

Sales of the high-end condominiums
were hurt by their leasehold status,
according to Realtor

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By Tim Ruel
truel@starbulletin.com

AHI Harbor LP today completed its $12 million deal with the city to purchase the fee interest in 84 Harbor Court condominiums, a Realtor said.

The Honolulu City Council approved the sale in December, in which AHI pays the city $7 million up front, plus $5 million during the next five years as AHI sells the fee-simple titles.

The purchase closed escrow Friday and the fee transferred today, said Paula Harris, sales and marketing director and principal broker for Harbor Court.

Five of the 84 apartment units have already been sold along with their fee, Harris said. Another five units are in escrow. Plus, three other units have been sold in leasehold, and the owners will have the opportunity to buy their fee from AHI. That leaves 71 Harbor Court apartments that are now up for sale in fee simple, Harris said.

Harbor Court is a 41-story mixed-use complex, with an 18-story office tower and a 28-story luxury condominium tower that has a total of 120 residential units, including the units that the city sold.

Developers built Harbor Court on city-owned land along Nimitz Highway as a leasehold project, then agreed in 1994 to buy the fees on the units as part of a plan to put the units up for sale. Slow sales put the project into bankruptcy.

"During the past two years, interested buyers have been consistently visiting Harbor Court, however, the on-going purchase negotiations for the fee interest with the City only allowed for leasehold closings. Now, with the fee-simple interest available, ... we expect brisk sales,"said Harris.

AHI, lender to the developers, inherited a commitment to purchase the fees.

Prices for available units start at $490,000 for a two-bedroom, two-bath residence. Monthly maintenance fees start at just more than $600 and cover water/sewer, building security, cable TV, exterior maintenance, parking and amenities.