Sale of Kailua beachfront home
grabs more than $10 million

CORRECTION Sunday, May 15, 2005 » The highest price paid for a home on Oahu in 2004 was $17.5 million for a house at 4505 Kahala Ave. A Page C1 story Wednesday incorrectly reported the highest price that year as $9.1 million for a Hawaii Kai home. The Honolulu Star-Bulletin strives to make its news report fair and accurate. If you have a question or comment about news coverage, call Editor Frank Bridgewater at 529-4791 or email him at corrections@starbulletin.com.

The $10.4 million spent earlier this year on a new beachside home on Kalaheo Avenue is the highest in recent memory, if not ever, for a single-family home there.

"According to our MLS records, no property has sold in Kailua in the past three years at that price level," said Harvey Shapiro, research economist for the Honolulu Board of Realtors.

The highest price a Kailua home fetched in 2004 was $5.9 million. In 2002, the best was just $3.85 million.

The Kalaheo Avenue home, initially listed for $11.5 million, was sold on March 14 to David Moore and Gina Pope, according to public records.

The home was built by Kerr Michaels Design & Construction Management Inc. last year.

"It's the first time we know that anyone's ever really built a new spec house on Kailua Beach," said President Jeff Kerr.

Not everyone is looking for a second home on a neighbor island, but many want a neighbor island feel. It is no secret that Kailua Beach is among the top beaches in the world. It also "has all the amenities of Oahu, with medical care, restaurants and the arts," Kerr said.

"People want privacy, they want something quiet and understated."

Kerr Michaels' goal with the Kailua house was to build something that wasn't glaringly new, but looked as if it "been there 30 or 40 years," he said.

"We don't want to do anything that's going to compete with the beauty of Kailua Beach."

That means no giant stucco monstrosities, as have been built in Kahala. "Nobody wants to see Kahala-type homes on Kailua Beach," Kerr said.

The highest price paid for an Oahu home in 2004 was $9.1 million for a Hawaii Kai residence, Shapiro said.