Betsill plans ‘aggressive’ sale
90% of properties are on the market
January 21, 2011 – By MELISSA TANJI, Staff Writer
Article from: The Maui News
Betsill Brothers Construction Co. has put up 90 percent of its property holdings for sale – from undeveloped oceanfront lots to possible commercial developments on Maui and the Big Island – to “reduce the debt and overhead” of the company, the Realtor for the Maui-based company said Thursday afternoon.
“This is just a prudent act by the Betsills to strengthen their financial position,” said Allen Yap, senior vice president and principal broker with Clearly Maui, an entity of Betsill holdings.
Yap said other developers in Hawaii have done the same.
“We just waited a little too long. We should have done this a while ago,” he added.
Attempts to reach Betsill officials were unsuccessful Thursday afternoon.
Because of the soft economy, companies like Betsill are stuck paying mortgages and taxes for properties that are just sitting, said Yap.
He said the appraised value of the more than 700 acres for sale on Maui and the Big Island is about $47 million, but the properties are being listed at reduced prices.
For example, a 2.4-acre vacant lot on Heona Place in Kihei, appraised at $970,000, is being listed for $500,000, according to data from Clearly Maui. A 6.6-acre property in Kona, which includes entitlements for a 149-unit multifamily project, is valued at $6.4 million but is on the market for $2.9 million.
“Cash and short escrows will produce investment-grade prices,” Yap said.
Still, he stressed that this is not a “distress” or “fire” sale but one that reflects an “aggressive” marketing approach by the Betsills.
“We’ve been quietly marketing for a while,” he said. “Now what we are going to do is become more aggressive.”
He said the properties have been listed with CB Richard Ellis, where Yap will be headed to next month to become a vice president after Clearly Maui is closed.
Yap wrote in an e-mail that Clearly Maui is closing because of “lack of necessity.”
Betsill does not have any projects scheduled for completion for the next year or two, and the primary purpose of Clearly Maui was to assist Betsill with the marketing of the company’s developed projects.
It also provided consulting services to Betsill and its partners regarding projects, Yap wrote.
Ten properties being sold are in Waihee and surrounding areas, five others are in Kihei, one is in Wailuku and four are in Kona, the property listings show.
**For information on the Maui market or for questions on these and other opportunities please email Clint Hansen at ClintHansen33@gmail.com**