The lender for the Ritz-Carlton Kapalua picked up its investment in a foreclosure auction last week at the state courthouse in Wailuku, with a $75 million credit bid on the luxury hotel.
Lehman Brothers Holdings outbid two other qualified bidders for the 404-room luxury property, which was foreclosed in September after institutional investors and Maui Land & Pineapple Co. defaulted on a loan, most recently valued at $268 million.
It is possible for a judge to reopen bidding if someone offers 5 percent above Lehman’s bid. However, if the bid is confirmed, the investment banking firm said it will focus on ensuring the hotel continues to operate and the value of the property is preserved.
The Ritz-Carlton Kapalua was built in 1992 for $206 million.
See the original article at: KHON2 Developing Stories
