The Oahuan Tower
56-unit Honolulu conversion
56
Total Units
Significant
Value Increase
N/A
Year Converted
HI
State
Property Details
Unit Types
N/A
Underlying Mortgage
Yes - defaulted bank loan from land purchase
The Transformation
From Challenges to Success
Before Conversion
The Challenges
After purchasing the land at a premium, the building was unable to retire the loan due to default by several of the owners that surrendered their interest and abandoned their units. The loan was a default risk when Hutton was called in to create and execute a clear plan.
The building needed to be refinanced but the ownership was clouded with prior closings and the lack on an exit strategy. No bank was willing to offer a new inventory loan.
Ownership equity was negative when Hutton was brought in to restructure and sell units for a profit.
After Conversion
The Results
Hutton worked with local building officials, county clerk, the lender and title companies to complete the physical and ownership conversion to individual condominiums. Hutton delivered individual title-insured deeds for each unit.
Hutton negotiated a curative new loan with another lender. Renovated surrendered units are now being sold at 80% above previous values and paying down the new loan.
Owners now have about $10 million in equity and a projected profit of about $2 million after unit closing and loan payoff.
Financial Impact
Financial Impact
Results shown are from a representative unit. Individual results vary by unit size and condition.
Property Location
The Oahuan Tower
1710 Makiki St, Honolulu, Hawaii
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