More than 5,800 acres of former sugar plantation land in Ka‘u will go to the highest bidder Tuesday during a foreclosure auction.
According to a report in the Pacific Business News, the land was bought in 2006 by resort developer Alan Worden, who headed a group called WWK Hawaii Holdings, which planned to develop the land.
At the time, WWK Hawaii Holdings planned to spend five years developing a high-end residential community with upscale homes on 20-acre lots.
The newspaper reports that the deal, which hinged on a $105-million loan from Lehman Brothers, fell apart after Lehman went bankrupt in 2008.
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Court documents show that the auction will include 5,879.8 acres of land classified as agricultural, residential, commercial and industrial.
The parcels are at multiple sites in the Ka‘u district, including Waikapuna Moaula, Honu‘apo and Na‘alehu. WWK Hawaii included subsidiary companies that owned the various parcels of land.
The total mortgage for the property is $59.7 million, which includes $44.7 million of principal and $15 million in accrued interest and late charges.
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The auction will be held at noon tomorrow on Oahu at the First Circuit Building in Honolulu.
For more information on the auction call the case’s commissioner on Oahu, George W. Van Buren, (808) 522-0420 or email [email protected].
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