As the rest of the world holds on pause to see what happens next, La’i Loa at Wailea, Wailea’s newest product has been introduced to South Maui. Although the current state of the market and has some concerned about uncertainties, this development has been long awaited and warmly welcomed by a captive audience. Bordered by Kai Malu at Wailea, the Wailea Blue Golf Course, a 13 acre natural reserve and Wailea Alanui Drive as shown on the map below.
Many of you have asked over the years to be kept apprised when something new comest to South Maui… 4 weeks from launch and they’re already 25% under contract.
The final 125-acres of residential living in Wailea was purchased by the developer, Ledcor from from A & B in early 2019. An upcoming 7 complex family of homes, Wailea Hills is on the last portion of what’s to be built in Wailea with walking paths, beach and restaurant access and a community vibe. It’ll take years before full completion, but we kick it off with Lai’loa at Wailea, 15 buildings with 75 units on 13 gorgeous acres of South Maui. The buildings in Lai Loa, located off Kai Malu Drive, and bordering Wailea Alanui Dr. will be oriented along the elevation to maximize the ocean views for the single-level two- and three-bedroom units and four-bedroom penthouses. Think big ocean, outer-island and golf course views – especially from the highly coveted Penthouse units, which are starting at $3.495m.
All views will face Northwest, with home prices starting at $1.5 million. and ranging into the upper $3m for larger footprint Penthouse units. I had the pleasure of attending a recent virtual tour. With the new ages of technology, they are able to depict excellent renderings of what’s to come. The best thing about these units are the size of the footprints. Larger than at Kai Malu or Keala o Wailea and really unlike anything else currently in Wailea. They also all have parking garages and ample storage for kayaks and stand-ups. All units will look straight out to the ocean, with the panoramic being the most substantial of them all.
Spacious floor plans
- 2 bedroom, 2 bath $1.495 1,374 inside + 312 sq.ft. covered lanai = 1,686 total sq. ft.
- 3 bedroom, 3 bath $2.050 1,743 inside + 424 sq.ft. covered lanai = 2,166 total sq. ft. Sits 40ft above the road
- 4 bedroom 3.5 bath $3.495m 2,587 inside + large 778 sq.ft. covered lanai = 3365 sq. ft. total Sits 55ft above road
All residences include designer custom finishes. There are no upgrades, they are all top notch. Sleek finishes include: disappearing glass sliders, wooden entry door w/ glass side light, LED lights in all rooms, plush carpets in the bedrooms. Grasscloth finishes, subway tile in the kitchen, double ovens, Hans Grohe appliances and toto toilets. To be explained as classic and sophisticated with a contemporary, modern and neutral color palette. Keeping it comfortable and practical… every unit has wide / deep lanais and a barbecue that vents to the outside.
Seattle-based architecture firm Weinstein A+U brought the vision to paper and world-renowned, Honolulu-based Philpotts Interiors are leading the design team for the project. Ledcors portfolio also includes development of the Luana Garden Villas at the Honua Kai Resort & Spa near Kaanapali on the west side of Maui. If you’ve ever been to Honua Kai invest Maui, you’ve been introduced to the luxe product that these visionaries are known for. It’ll be fun to see the same realized on our side of town and we are excited to bring you this special opportunity.
The amenity center sits against a 3-acre natural reserve parcel. A hot tub, infinity pool, gym, pool with expansive deck, and cascading lawns for bocce ball or sunset picnics. A well thought out plan promoting gathering and community and it has nothing impacting your view.
Photos and site plans courtesy of Wailea Hills, via their brochure.
Projections forthcoming for a larger-scale community center for the Wailea Hills project – 7 communities as a whole to enjoy. This will be near the upcoming Clubhouse which will be a big benefit.
This is the first project of 7 that will complete the Wailea Resort. It’s smart to consider “getting in” early. You saw what happened with initial investors at Keala o Wailea. Don’t WAIT. Virtual tours are available and reservations are being accepted now.
What’s required to reserve?
- 5% 1st deposit, due at contract signing
- Contract goes binding July 12th.
- 10% 2nd deposit, due August 12th.
- 85% to be brought in at close via cash or loan.
Once 65% of the units are binding the developer will break ground with completion projected sometime in 2023, although that is not definitive.
Check out this latest video from our Chief Economist Matthew Gardner on New Home Construction.
Curious about New Construction? It’s an even better opportunity in a place with limited supply.
Reach out… Let’s get your toes in the sand.
With aloha, Erica
Selling Real estate in Hawaii has us immersed in a second home market ripe with investors looking to transfer their investment funds using the 1031 Tax Exchange program on Maui pretty often. It’s important to know the facts and have the resources on hand when you need answers you can trust, especially when looking to invest somewhere disconnected and far from home – like Hawaii.
Fidelity National Title gives a great explanation on a what 1031 Exchange actually is:
Section 1.1031, of the Internal Revenue Code of 1986, as amended, offers real estate investors one of the last great investment opportunities to build wealth and save taxes. By completing an exchange, the investor (Exchanger) can dispose of their investment property, use all of the equity to acquire a replacement investment property, defer the capital gain tax that would ordinarily be paid, and leverage all of their equity into their replacement property.
Whoa. Did you READ that right??? Yes, you sure did. And it’s got investors saving hand over fist in an incredibly HOT market on Maui. You sell your investment, and then roll the capital into another and save a ton on taxes.
… ON 2 CONDITIONS.
1.). Exchange must be for “like-kind” – ie. residential for residential, or commercial for commercial, etc…
2.). No cash or additional benefit may be acquired unless you pay capital gains taxes on it.
WHAT DOES IT TAKE?
The IRS demands that once your property is sold, it is placed with an intermediary entity called an ‘Accommodator’ who is in charge of holding the funds. The Exchanger then has 45 days from the date of close to identify 3 possible replacement properties.
… 3 FINAL REQUIREMENTS.
1.). Purchase must be of equal or greater value.
2.). All equity must be re-invested.
3.). Equal or greater debt. (with an exception that a reduction can be offset with additional cash, but a reduction in equity cannot be offset by increasing debt.
Once the 45 days have passed, the property identification list cannot be changed and everything must be logged and in writing with the accommodator to show that we are abiding by specific guidelines.
So the GENERAL 3 RULES
- The new purchase must be the same or greater value than the relinquished.
- Reinvest all of the exchange equity into the replacement property
- and obtain the same or greater debt on the replacement property as the one relinquished.
Both properties must be sold and acquired for income and/or investment purposes.
Here’s the full article from Fidelity National Title that explains these specifics.
More questions? Who can HELP?
Julie Bratton with OREXCO is the local expert and the person to call when considering a 1031 tax exchange on Maui. Old Republic Exchange has also created this awesome video to help with understanding the process of 1031 tax exchanges.
Here’s also a brochure to explain some of the particulars. ORE Brochure 2018
If you’re strongly considering, Julie is so easy to talk to and she can help with understanding all kinds of ways the exchange program works – including deferred, reverse and simultaneous. Her experience has proven a strong track record in guiding homeowners to successfully achieve their investment goals. Don’t be afraid to reach out!
Julie Bratton (formerly Tumbaga) – Hawaii Representative
Maui provides an amazing landscape for the investor looking for a 2nd home that can generate some passive income through the short term rental market when you can not be here to enjoy. World-class beaches, dining, and shopping are all at your fingertips and the weather is fantastic year-round. As time goes by, you can spend more time here enjoying your investment. This is the ultimate retirement plan. Curious about an investment on Maui? Reach out, let’s get your toes in the sand.
With aloha, Erica Haleakala – 808-281- 4107
Wailea Realty Corp | Windermere Maui | The Shops at Wailea, Maui Hawaii.