Lehman Brothers Holdings Inc. purchased the Ritz-Carlton Kapalua with a $75 million credit bid during a foreclosure auction held in a Maui courthouse earlier this month, according to a May 6 Honolulu Star Advertiser report.
The 404-room luxury resort was foreclosed in September after the property’s owners, Maui Land & Pineapple Co. and various investors, defaulted on a Lehman Brothers loan the Star Advertiser said was valued recently at $268 million.
Bidding could be reopened if, according to the report, another party were to offer 5% above the Lehman bid.
“When lenders take a property back, they're looking to maximize the value for it to try to recover their loan,” Barry Sullivan, an attorney representing Lehman, told the Star Advertiser. “The idea is to do what's in the best interest of the property so that we can do the best we can to recover the investment that was made.”
The sale included 73 unsold condo units, 297 hotel units, common areas, commercial space and 21 undeveloped acres.