The lender in the Makena Beach & Golf Resort foreclosure case ended up being the highest bidder for the property, but that might not last long.

A court-mandated public auction for the Maui property was held at the Maui County courthouse yesterday morning. Wells Fargo Bank had the highest bid at $55 million.

The financial institution is owed more than $192.5 million in principal, plus interest and other costs on its mortgage loan. The only other bidder, who wished not to be disclosed, put in a bid for $50 million.

Chris Lau, Honolulu-based real estate developer and court-appointed commissioner for the foreclosure sale, said he hopes to have a confirmation hearing within 30 to 45 days, depending on the Maui Circuit Court calendar.

At that hearing, other interested parties will have one last chance to bid on the property, as long as their bid is more than 5 percent of Wells Fargo's final $55 million bid.

Lau said other interested parties held out on the public auction in a strategic move to first see what others would bid on the property. He expects other bidders to emerge when the confirmation hearing occurs.

An air of uncertainty still hangs over the 250 or so hotel employees, who have worked with their management to improve the resort's performance.

“;The employees are still worried, still concerned about the jobs after the auction,”; said William Kennison, director of International Longshore and Warehouse Union Local 142 on Maui. “;So far, the bank has shown us at that their plans are to continue operations.”;

Wells Fargo petitioned for receivership to keep the asset open in September after then-owners Everett Dowling Co. and a Morgan Stanley real estate fund walked away from their investment. An additional $227 million of debt has not been secured by the mortgage.

After entering into receivership, Wells Fargo gave management duties to Benchmark Hospitality International. Since then the property's performance has improved.

Kennison said the hotel has seen effective and aggressive marketing. The hotel also updated its restaurants and introduced new activities for its guests, including outdoor events and horseback riding.

“;Our occupancy has nearly doubled from a year ago, and we are looking forward to a very strong summer season,”; said Kelly Lewis, general manager. “;Our group and individual business has shown strength across the board.”;

Kennison said the employees would be happy as long as their jobs are protected and Benchmark remains as the management company.

In February, Maui Circuit Judge Shackley Raffetto entered an order of foreclosure for the property, formerly known as the Maui Prince Hotel.

“;I spent hundreds of hours these past few months introducing potential investors from all over the world to the property,”; said Lau, also vice chairman of Towne Development of Hawaii.

For the moment there will be no changes to employment, management and operations of the property.

“;Makena is a special place, and we are committed to a smooth transition to stable new ownership,”; said Barry Sullivan, attorney for Wells Fargo. “;As we said when this process started, the Makena Beach & Golf Resort will remain open, and the community can count on that fact.”;

If Wells Fargo remains the top bidder for the property, the case would be the latest in a string of recent takeovers by lenders on properties. In late February a consortium of investment management firms, including Wells Fargo, took back Turtle Bay Resort from Oaktree Capital Management LP.

Other big-name properties that have gone to lenders include the Ilikai, Fairmont Orchid, ResortQuest Kauai and Kapolei Trade Center.