Kailua sale sets mark for Windward side of Oahu
A Kailua Beach house and guest house sell for a combined $24 million
The sale this week of a Kailua estate for $24 million establishes a new benchmark for Windward Oahu, giving speculative builders optimism their properties can command a record high.
Kailuana Estates, composed of a main house and guest house, went to an international buyer after about six months on the market, said listing agent Tracy Pflueger of Coldwell Banker Pacific Properties. The properties are at 145 and 151 Kailuana Loop.
TOP 5 KAILUA LISTINGS
1. $17.8 million
59 Kailuana Place
Patricia Case, Case Properties International
10 bedrooms, 7 1/2 baths
5,437-square-feet living area
2. $16.75 million
1360 Mokulua Drive
Anthony L. Pace, Realtor
6 bedrooms, 6 1/2 baths
7,073-square-feet living area
3. $14.5 million
Vacant lot
Gold Coast Real Estate Inc.
4. $14 million
22 Kaiholu Place
Patricia Choi, Choi International
Beachfront lot, 32,870 square feet
5. $13.5 million
Kailuana Place
Stevan Bailey, Mary Worrall Associates
4 bedrooms, 5 1/2 baths
Completion expected in 2007
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"They were drawn to the rarity and beauty of the estate," Pflueger said. "It's very rare to find two lots of this size on Kailua Beach, which is truly like a little Four Seasons."
The last record sale on the Windward side was $10.4 million for a beachfront home at 604 N. Kalaheo Ave. last year. It was listed for $11.5 million.
Pat Choi of Choi International is in escrow on a $6.9 million beachfront home on Mokulua Drive. She has another vacant lot listed for $14 million.
At $400 or more per square foot, property values in Kailua now rival those of Kahala.
"In a global market, Kailua Beach and Lanikai are players," said Anne Oliver of Coldwell Banker.
"The only reason there haven't been more sales there is that there weren't properties with the improvements ready."
Several homebuilders are hoping to capitalize on the new market.
Stephen Funke of Kailua Construction Co. is working on five new homes at Castle Point -- at the northern end of Kailua Beach -- which are each being marketed at $12.9 million and above.
An earlier auction of the homes did not go as expected, with Funke stepping in to buy them himself when the homes did not fetch the prices the developer was looking for. Now Mary Worrall Associates Sotheby's International Realty is marketing the homes in the traditional way.
Jeff Kerr of Kerr Michaels Design & Construction Management Inc. is betting that his built-to-sell estate in Kailua will fetch a comparable -- or even higher -- price when it's done.
Last April, Kerr Michaels purchased a 1.5-acre lot at 210 N. Kalaheo Ave. Currently, three parcels from the lot are listed for $14.5 million apiece. But Kerr said after Pflueger's sale, he'll likely finish building the estate.
When it's completed, Kerr said he plans to list the estate for $27 million.
"We're creating a total Shangri-la," he said. "We're putting in at least $1 million just for landscaping. But it will be very understated, and hidden. You won't even be able to see the house from the street."
Realtor Anthony Pace, who has a Lanikai home at 1360 Mokulua Drive listed for $16.75 million, said that property can be combined with 1352 Mokulua Drive (listed for $7.9 million) for a total of $24 million.
The Kailuana Estates combined were listed for $27 million together, and separately for $16 million for the main house and $14 million for the smaller home.
