<?xml version="1.0" encoding="UTF-8" ?>
<rss version="2.0" xmlns:atom="http://www.w3.org/2005/Atom">
    <channel>
        <atom:link href="http://www.luxuryrealestatemaui.com/blog/alaeloa/rss/" rel="self" type="application/rss+xml" />
        <title>Maui Real Estate &amp; Lifestyle News</title>
        <link>http://www.luxuryrealestatemaui.com/blog/alaeloa/</link>
        <description>Courtney M. Brown, Realtor (S) Blog: information on the Maui real estate market, trends, and listings. Homes, condos and land for sale.</description>
<item>
    <guid>http://www.luxuryrealestatemaui.com/blog/maui-real-estate-spotlight-alaeloa-44.html</guid>
    <link>http://www.luxuryrealestatemaui.com/blog/maui-real-estate-spotlight-alaeloa-44.html</link>
        <author>cb@luxuryrealestatemaui.com (Courtney M. Brown)</author>
        <title>Maui Real Estate Spotlight: Alaeloa 44</title>
    <description> <![CDATA[ 
Introducing Alaeloa 44





Alaeloa is a hidden gem nestled along the picturesque coastline of Napili.  This tranquil and idyllic enclave is home to just 42 residences situated on 13 beautifully landscaped oceanfront acres.  


Alaeloa 44 is a beautifully renovated two bedroom residence with vaulted ceilings and a spacious lanai with views of the ocean and the neighboring island of Molokai.  Nestled in a mango grove, the property has the charm and feel of Old Hawaii.





Stunning Views  Stacking glass doors create a seamless living experience between the living room and lanai, with a focus on the view of the Napili  coastline and Molokai.





The kitchen is a dream beautifully remodeled to create a large kitchen island with seating for four, the kitchen features new appliances including a wine fridge





Dining Indoors or Outdoors, whether you prefer having your meals inside or out, both areas open to the view





A room with a view The oversized primary bedroom suite features large sliding doors that stack, to allow indoor-outdoor living with a focus on the ocean view.





Both bathrooms have been beautifully renovated





The spacious guest suite is large enough for two beds.  Vaulted ceilings and large windows make the room light and airy.


Where is Alaeloa?


Located on the western coast of Maui, Alaeloa surrounds a pristine bay with stunning views of the Pacific Ocean and neighboring islands. This intimate and secluded bay provides a private haven to relax, soak up the sun, and listen to the soothing sound of waves gently lapping against the shore. The calm waters are perfect for swimming, snorkeling, paddleboarding, kayaking and, in the winter, when the swells come in, surfing at the north end of the Bay.  Inland of the oceanfront pool is an owner's pavilion, surrounded by a mango grove.


Alaeloa's prime location in Napili makes it an excellent base for exploring Maui.  Nearby Napili Bay is one of Maui's most loved beaches.  Known for its crescent-shaped beach, it is anchored by the popular Sea House and Gazebo Restaurants.  Further North is the Kapalua Resort, which is home to the Bay and Plantation Golf Courses, the Kapalua Tennis Gardens, five beaches, hiking and walking trails, and The Montage Kapalua Bay and Ritz-Carlton Resorts.


Alaeloa is a leasehold property.  Read More about Leasehold Ownership


Snapshot: The Alaeloa Real Estate Market






Status


Community


Unit


List Price


Sold Price


SP/LP


Close Date


Beds


Baths


Liv-SF


DOM


$/Sq. Ft.


MLS 


LT




ACT


Alaeloa


38


$1,450,000


 


 


 


3


2


1,276


24


$1,136


401326


Leasehold




ACT


Alaeloa


41


$1,475,000


 


 


 


2


2


1,347


388


$1,095


398241


Leasehold




ACT


Alaeloa


44


$1,999,000


 


 


 


2


2


1,128


11


$1,772


401477


Leasehold




ACT


Alaeloa


26


$3,500,000


 


 


 


2


2.5


1,276


234


$2,743


399488


Leasehold




ACT


Alaeloa


28


$3,790,000


 


 


 


3


3


1,528


234


$2,480


399487


Leasehold




ACT


Alaeloa


9


$4,276,000


 


 


 


4


4


4,000


65


$1,069


400894


Leasehold




SLD


Alaeloa


27


$3,195,000


$3,195,000


100


1/26/22


3


2.5


1,528


25


$2,091


394216


Leasehold




SLD


Alaeloa


3


$1,275,000


$1,325,000


104


1/27/22


2


2


1,128


164


$1,175


392670


Leasehold




SLD


Alaeloa


23


$2,900,000


$2,900,000


100


2/15/22


3


2


1,276


37


$2,273


394780


Leasehold




SLD


Alaeloa


30


$2,985,000


$2,965,000


99


2/15/22


3


2


1,400


29


$2,118


394383


Leasehold




SLD


Alaeloa


15


$2,100,000


$1,935,000


92


2/28/22


2


2


1,410


53


$1,372


394270


Leasehold




SLD


Alaeloa


42


$1,795,000


$1,800,000


100


3/30/22


2


2


1,400


33


$1,286


394884


Leasehold




SLD


Alaeloa


29


$2,800,000


$2,800,000


100


4/21/22


2


2


1,368


51


$2,047


395532


Leasehold




SLD


Alaeloa


40


$1,495,000


$1,350,000


90


6/13/22


2


3


1,352


105


$999


394924


Leasehold




SLD


Alaeloa


37


$1,600,000


$1,600,000


100


1/25/23


2


2


1,276


41


$1,254


397965


Leasehold




SLD


Alaeloa


40


$1,599,000


$1,550,000


97


4/14/23


3


3


1,352


122


$1,146


397607


Leasehold




SLD


Alaeloa


45


$1,650,000


$1,400,000


85


6/30/23


2


2


1,276


129


$1,097


398187


Leasehold






MLS data taken as of the date of this post and is subject to change.


View all condos for sale in Alaeloa



 ]]> </description>
    <pubDate>Fri, 22 Mar 2024 12:18:00 -1000</pubDate>
</item>
<item>
    <guid>http://www.luxuryrealestatemaui.com/blog/introducing-alaeloa-38.html</guid>
    <link>http://www.luxuryrealestatemaui.com/blog/introducing-alaeloa-38.html</link>
        <author>cb@luxuryrealestatemaui.com (Courtney M. Brown)</author>
        <title>Introducing Alaeloa 38</title>
    <description> <![CDATA[ 
Introducing Alaeloa 38





Alaeloa is a hidden gem nestled along the picturesque coastline of Napili.  This tranquil and idyllic enclave is home to just 42 residences situated on 13 beautifully landscaped oceanfront acres.  


Alaeloa 38 is a free-standing three-bedroom cottage with vaulted ceilings and a spacious covered lanai with views of the ocean and Molokai.  Nestled in a mango grove, the property has the charm and feel of Old Hawaii.





Located on the western coast of Maui, Alaeloa surrounds a pristine bay with stunning views of the Pacific Ocean and neighboring islands. This intimate and secluded bay provides a private haven to relax, soak up the sun, and listen to the soothing sound of waves gently lapping against the shore. The calm waters are perfect for swimming, snorkeling, paddleboarding, kayaking and, in the winter, when the swells come in, surfing at the north end of the Bay.


Alaeloa's prime location in Napili makes it an excellent base for exploring Maui.  Nearby Napili Bay is one of Maui's most loved beaches.  Known for its crescent-shaped beach, it is anchored by the popular Sea House and Gazebo Restaurants.  Further North is the Kapalua Resort, which is home to the Bay and Plantation Golf Courses, the Kapalua Tennis Gardens, five beaches, hiking and walking trails, and The Montage Kapalua Bay and Ritz-Carlton Resorts.


Alaeloa is a leasehold property.  Read More about Leasehold Ownership


Snapshot: The Alaeloa Real Estate Market






Status


Unit


List


Sold


Date


Beds


Baths


Sq. Ft. 


DOM


$/SQFT


MLS 


Tenure




ACT


38


$1,450,000


 


 


3


2


1,276


0


$1,136


399432


Leasehold




ACT


41


$1,550,000


 


 


2


2


1,347


146


$1,151


398241


Leasehold




SLD


27


$3,195,000


$3,195,000


1/26/22


3


2.5


1,528


25


$2,091


394216


Leasehold




SLD


3


$1,275,000


$1,325,000


1/27/22


2


2


1,128


164


$1,175


392670


Leasehold




SLD


23


$2,900,000


$2,900,000


2/15/22


3


2


1,276


37


$2,273


394780


Leasehold




SLD


30


$2,985,000


$2,965,000


2/15/22


3


2


1,400


29


$2,118


394383


Leasehold




SLD


15


$2,100,000


$1,935,000


2/28/22


2


2


1,410


53


$1,372


394270


Leasehold




SLD


42


$1,795,000


$1,800,000


3/30/22


2


2


1,400


33


$1,286


394884


Leasehold




SLD


29


$2,800,000


$2,800,000


4/21/22


2


2


1,368


51


$2,047


395532


Leasehold




SLD


40


$1,495,000


$1,350,000


6/13/22


2


3


1,352


105


$999


394924


Leasehold




SLD


37


$1,600,000


$1,600,000


1/25/23


2


2


1,276


41


$1,254


397965


Leasehold




SLD


40


$1,599,000


$1,550,000


4/14/23


3


3


1,352


122


$1,146


397607


Leasehold




SLD


45


$1,650,000


$1,400,000


6/30/23


2


2


1,276


129


$1,097


398187


Leasehold






Average Sales Price







Average Sales Price/Square Foot







MLS data taken as of the date of this post and is subject to change.


View all condos for sale in Alaeloa



 ]]> </description>
    <pubDate>Mon, 24 Jul 2023 13:41:00 -1000</pubDate>
</item>
<item>
    <guid>http://www.luxuryrealestatemaui.com/blog/alaeloa-30-a-serene-oceanfront-residence-in-napili-maui.html</guid>
    <link>http://www.luxuryrealestatemaui.com/blog/alaeloa-30-a-serene-oceanfront-residence-in-napili-maui.html</link>
        <author>cb@luxuryrealestatemaui.com (Courtney M. Brown)</author>
        <title>Alaeloa 30: a serene oceanfront escape in Napili, Maui</title>
    <description> <![CDATA[ 
New to Market: Alaeloa 30, Napili, Maui


Alaeloa is one of Maui's hidden gems.  Behind the gates, off the Lower Honoapiilani Road, this small community is nestled along the Napili coastline.  With just 42 residences, a mix of free-standing cottages and duplexes, on 13 acres, this oceanfront enclave is reminiscent of the Maui of my childhood...the cottages are a nod to the Plantation Style of architecture, and the seaside pool is surrounded by a mango grove.  Owners have the ability to store kayaks and paddleboards, and the small bay is often home to turtles.  


When I met the owners of Alaeloa 30 and saw it for the first time, my eye was immediately drawn to the view.  The large lanai offers a vantage point that stretches down the coastline to Kapalua, with surf breaks like Little Makaha and Hole in the Head firing in the distance.  Of course, being January, what caught my attention was the whales, which were breaching just a short distance from the lanai.


The owners of Alaeloa 30 have thoughtfully designed the interior, creating a warm inviting space, with floor-to-ceiling windows that bring the dramatic ocean views into focus.  The left side of an oceanfront duplex cottage, the lanai is sheltered from the prevailing tradewinds, providing a calm place for dining, reading, or taking in the spectacular sunsets.


Tiled floors and vaulted ceilings, create a calming, open backdrop for the living spaces.  





Nestled along the coast, Alaeloa 30 (second building from left, lanai on the right) is situated directly on the water--the sound of the ocean creates a peaceful backdrop for these charming oceanfront cottages.





The lanai from Alaeloa 30 takes in sweeping views of the West Maui coastline down to the Montage Kapalua Bay. For those that love to cook, the Alaeloa is one of the few condominium complexes that will allow personal BBQs on the lanais.  





The living room opens to the beautiful ocean view, and the sheltered lanai, which provides a cool and serene retreat in the afternoons.  The lighting was upgraded, with dimmers to allow you to adjust the light throughout the home.





The primary bedroom suite features an incredible oceanfront sitting area along with custom built-in cabinetry.


 Spend time relaxing, reading or just watching the whales go by from the gracious primary bedroom suite.





The ensuite features soaring ceilings and a spacious walkin shower.


A chef's kitchen, the room is open to the living area, with plenty of room for entertaining.


Guests have a private bedroom with an adjacent bathroom with a walk-in shower.





The flex room features a new sofabed, allowing it to be used for overflow guests or a media room.





Alaeloa is a pet-friendly community, a rarity in West Maui, and this single-level residence features a carport as well.





Vacation rentals are presently allowed under Maui Ordinance 4369, and the current AOAO rules restrict rentals to one rental per 30 day period.


The Floor Plan is for illustrative purposes only.  Rendering is taken from Matteport and interested parties should do their own independent verification of the floor plan.


This beautiful residence is offered furnished at $2,985,000 Leasehold.  Read More about Leasehold Ownership


Take a Virtual Walkthrough


For more information on this property and the market at Alaeloa, contact Courtney M Brown.  This property is co-listed with Rob Shelton, R(B) of Island Sotheby's International Realty.


The Market at Alaeloa


As of the date of this this post, 30 is the only residence actively listed for sale.  There are three Alaeloa units pending sale:






Status


Community


Residence


List Price


Beds


Baths


Sq. Ft. 


DOM


LP/Sq. Ft.


MLS 


Tenure




Pending


Alaeloa


3*


$1,275,000


2


2


1,128


154


$1,130


392670


Leasehold




Pending


Alaeloa


15


$1,900,000


2


2


1,410


11


$1,348


394270


Leasehold




Pending


Alaeloa


27


$3,195,000


3


2.5


1,528


16


$2,091


394216


Leasehold






With so few units, there are usually just a handful of sales each year at Alaeloa and some years there have been no sales.  2021 brought with it a frenzy of activity to Maui's real estate market, and Alaeloa was no exception.  Sales ranged from 97 to 102 of list price.  Properties selling for over list price is a trend we are seeing more of in 2022.






Status


Community


Residence


List Price


Sold Price


Close Date


Beds


Baths


Sq. Ft. 


DOM


SP/Sq. Ft.


SP/LP


MLS 


Tenure




SLD


Alaeloa


30


$2,100,000  


$2,150,000  


2/16/21


2


2


1,400  


50


$1,536


102 


389787 


Leasehold




SLD


Alaeloa


29


$1,980,000


$1,930,000


4/1/21


2


2


1,368


38


$1,411


97


390478


Leasehold




SLD


Alaeloa


44*


$1,175,000


$1,175,000


7/2/21


2


2


1,128


45


$1,042


100


392203


Leasehold




SLD


Alaeloa


23


$2,750,000


$2,750,000


7/9/21


3


2


1,276


53


$2,155


100


391530


Leasehold




SLD


Alaeloa


6*


$1,200,000


$1,200,000


7/30/21


2


2


1,430


301


$839


100


389337


Leasehold




SLD


Alaeloa


9


$3,500,000


$3,500,000


10/15/21


4


4


4,000


162


$875


100


391392


Leasehold






*these units are one half of a duplex


A Historical Perspective: 2016 to 2021






ALAELOA


2021


2020


2019


2018


2017


2016




Sales Volume


$12,705,000


$3,625,000


0


$3,225,000  


$4,885,000  


$5,397,799  




Number of Sales


6


2


0


2


3


6




Low Sales Price


$1,175,000


$1,225,000


NA


$875,000


$690,000


$610,299




Average Sales Price


$2,117,500


$1,812,500


NA


$1,612,500


$1,628,333


$899,633




High Sales Price


$3,500,000


$2,400,000


NA


$2,350,000


$2,195,000


$1,875,000




Average SP/Sq. Ft.


$1,310


$1,108


NA


$1,264


1044


$648




Average DOM


108


39.5


NA


48


163


113




Average SP/LP


100


93


NA


95


94


93






View Alaeloa Condos for Sale



 ]]> </description>
    <pubDate>Mon, 17 Jan 2022 14:32:00 -1000</pubDate>
</item>
<item>
    <guid>http://www.luxuryrealestatemaui.com/blog/alaeloa-market-update-november-2021.html</guid>
    <link>http://www.luxuryrealestatemaui.com/blog/alaeloa-market-update-november-2021.html</link>
        <author>cb@luxuryrealestatemaui.com (Courtney M. Brown)</author>
        <title>Alaeloa: Market Update November 2021</title>
    <description> <![CDATA[ 
Alaeloa: Napili, Maui, Market Update





Alaeloa is truly one of my favorite properties and one of Maui's hidden gems...an enclave of just 42 single and duplex residences on 13 acres, this private, gated community is situated on a private oceanfront cove in Napili.  Through a large mango grove there is direct access to a crescent beach and the surf break at Little Makaha.  Overlooking the bay, there is a recreation area for owners including a large heated saline pool, a Pavilion with kitchen, bathrooms and showers, and kayak storage. 


Alaeloa Real Estate Market Overview for 2021


Current Listings*: 1 PendingPrice Range: $1,295,000 LeaseholdSales YTD:  6Sales Range: $1,175,000 to $3,500,000 LeaseholdSales Volume: $12,705,000Average Sales Price: $2,117,500 Leasehold


VIEW ALAELOA SALES






Status


Unit


List Price


Sold Price


Close Date


Beds


Baths


Liv-SF


DOM


$/Sq. Ft.


MLS 


Tenure




PENDING


3


$1,275,000


 


 


2


2


1,128


95


$1,130


392670


Leasehold




SLD


30


$2,100,000


$2,150,000


2/16/21


2


2


1,400


50


$1,536


389787


Leasehold




SLD


29


$1,980,000


$1,930,000


4/1/21


2


2


1,368


38


$1,411


390478


Leasehold




SLD


44


$1,175,000


$1,175,000


7/2/21


2


2


1,128


45


$1,042


392203


Leasehold




SLD


23


$2,750,000


$2,750,000


7/9/21


3


2


1,276


53


$2,155


391530


Leasehold




SLD


6


$1,200,000


$1,200,000


7/30/21


2


2


1,430


301


$839


389337


Leasehold




SLD


9


$3,500,000


$3,500,000


10/15/21


4


4


4,000


162


$875


391392


Leasehold






Sales in 2021 have picked up dramatically at Alaeloa over 2020, as they did with most all of the markets on Maui.  However, it should be noted that with such a limited number of units, the low sales in 2020 and 2019 may be indicative of supply vs. demand. Alaeloa saw quite a bit of turnover in 2016, and then modest turnover (approximately 5 of the community) in 2017, 2018, and 2020. 


As Alaeloa offers both oceanfront and ocean view condominium residences, as well single units and duplexes, there is a broad variation in values.  This year, the high oceanfront sale was Alaeloa 23, which closed at $2,750,000.  Alaeloa 9 is a record high sale, however, it is unusual in that the property has its own gated entrance and had a considerably larger floor plan than we typically see.    Alaeloa offers the feeling of a private home, with condominiumized grounds, which is attractive to buyers seeking the privacy of a home and the ease of maintenance of a condominium.    


How does 2021 compare to prior years?






ALAELOA


2021


2020


2019


2018


2017


2016




Sales Volume


$12,705,000


$3,625,000


0


$3,225,000


$4,885,000


$5,397,799




Number of Sales


6


2


0


2


3


6




Low Sales Price


$1,175,000


$1,225,000


NA


$875,000


$690,000


$610,299




Average Sales Price


$2,117,500


$1,812,500


NA


$1,612,500


$1,628,333


$899,633




High Sales Price


$3,500,000


$2,400,000


NA


$2,350,000


$2,195,000


$1,875,000




Average SP/Sq. Ft.


$1,310


$1,108


NA


$1,264


1044


$648




Average DOM


108


39.5


NA


48


163


113






What is the Leasehold Agreement at Alaeloa?


A leasehold interest is created when the owner of a property enters into an agreement to lease the property for a specified period of time. As the purchaser of a leasehold property, you are acquiring the right to occupy and use the leased property for a specified period of time stated in the lease agreement. 


The Alaeloa leasehold estate was created in 1965 and runs to December 31, 2059. Ground leases are determined every ten years by the appraised value of the property as if it were unencumbered and there were no improvements on the property. The Alaeloa lease stipulates that ground rents are determined by the agreed-upon appraised value times a specified interest rate or the then prevailing rate of similar properties similarly located. 


Ground leases will be established from 2020 through 2024, 2025 through 2034, 2035 through 2044, and 2045 through 2059. Most leases contain a surrender clause that states that the land and improvements revert back to the landowner at the expiration of the lease and there is no guarantee that a leasehold property will not revert unless agreed upon and advertised as Leasehold-Fee Available. However, some Lessors are negotiating with Lessees to extend the leases and in some cases we are seeing leasehold properties being converted to fee simple ownership, meaning in a condominium you own the unit as well as a percentage interest in the fee (land) and its improvements.  


We recommend purchasers of leasehold property seek legal counsel to review the ground lease agreements and leasehold documents.  Read More about Purchasing Leasehold Property in Hawaii


Are short term rentals allowed at Alaeloa?


As of the date of this post, short term rentals are allowed per the CC&amp;Rs and the County of Maui's ordinance 4369. Alaeloa has a longstanding rental policy with a minimum of a 30 day rental (or no more than one rental per 30 day period).  Read more


*All data above is taken from the MLS at the time of this post.  Alaeloa is a leasehold property.


ALAELOA CONDOS FOR SALE



 ]]> </description>
    <pubDate>Fri, 19 Nov 2021 15:42:00 -1000</pubDate>
</item>
<item>
    <guid>http://www.luxuryrealestatemaui.com/blog/leasehold-vs-fee-simple-ownership-faqs.html</guid>
    <link>http://www.luxuryrealestatemaui.com/blog/leasehold-vs-fee-simple-ownership-faqs.html</link>
        <author>cb@luxuryrealestatemaui.com (Courtney M. Brown)</author>
        <title>Leasehold vs. Fee Simple Ownership: FAQs</title>
    <description> <![CDATA[ 
Frequently Asked Questions: What is the difference between Leasehold and Fee Simple Ownership in Hawaii





Alaeloa: a rare gem, oceanfront and ocean view cottages in Napili, Maui


Why is there leasehold property? The History of Leasehold Property in West Maui:


With the development of the Kaanapali Resort in 1961 and later the Kapalua Resort in 1978, Maui became a vacation destination. As tourism flourished and became the mainstay of our economy, local landowners partnered with developers to build Leasehold condominiums on family-owned properties or on former agricultural land.  In West Maui, many local landowners saw this as a way to retain ownership of their land and derive income from the lease rents.  Leases were typically set for 99 years, with renegotiations after a set period of time, and then every 10 years until expiration.


In Kapalua, the Ironwoods, Golf Villas, Bay Villas and Ridge Villas all started as leasehold properties and converted to Fee Simple ownership.  In Kaanapali, the Kaanapali Alii, Whaler, and Kaanapali Royal started as Leasehold and the fee was offered for sale, though not everyone elected to purchase it at the time of the offering--at these condominium properties, you'll find both Fee Simple and Leasehold condominiums for sale.  The Maui Eldorado remains Leasehold.  Napili also has its share of leasehold development, though, like Kapalua, most all have converted to fee simple.  Currently, at Napili Point Phase I condominiums are Leasehold and Phase II condominiums are Fee Simple.


What does Leasehold and Fee Simple Ownership mean?


Hawaii is one of a handful of states in America that has both Fee Simple and Leasehold ownership.  Our MLS notes whether a property is being offered in Fee Simple (FS), Leasehold (LH), or Leasehold-FA (Fee Simple interest available for separate purchase).


Fee simple ownership, which is what is typically offered in the mainland US, is ownership of the land and all improvements. In the case of a condominium property, Fee Simple ownership is the ownership of the condominium unit and ownership of a percentage interest of the common elements and limited common elements.


A Leasehold interest is outlined in a Master Lease which outlines the length and terms of the lease between the land owner (the Lessor) and the buyer of the property (Lessee), who acquires an interest in the property with the right to occupy and use the leased property for a specified period of time.  The Lessee does not own the land, and pays rent for the land per the terms of the master lease.


At the end of the lease, there is typically a surrender clause, whereby ownership of any improvements on the land revert back to the Lessor. Prior to the expiration of the master lease, it is possible, but not guaranteed, that a Lessor and Lessee may renegotiate and extend the lease agreement.  If the Lessor chooses to sell the Fee Simple interest, the Leasehold owner (or Association of Apartment Owners) is offered the first opportunity to buy it.


What are common definitions* owning a leasehold property?


When purchasing a leasehold property, a Leasehold Disclosure is required which provides the buyer the opportunity to review and approve the Leasehold Documents, including the Master Lease and any amendments.  Definitions follow:




Leasehold Property: A Property held under the terms of a Lease agreement. The holder of a Leasehold Interest, Lessee, usually pays the owner of the Leased Fee Interest, Lessor, a stated amount of Lease rent over a specified Lease term in consideration for the right to use and occupy the Property.


Lease: The written agreement between a Fee Simple owner, Lessor, giving possession of the land or another person, Lessee, for a definite period of time in return for the payment of rent.


Lease Term: length of the lease.


Fixed Period: leases rents are set for a period of time.


Renegotiation Dates: the date on which the terms of the Lease are renegotiated and changed. In most Leases the Lease rent is not

fixed for the full term of the Lease; instead, at certain fixed times stated in the Lease, called Renegotiation Date(s), Lessor and Lessee agree on a new Lease rent. The Lease may contain a formula for setting the new Lease rent and any increases.




Expiration Date: date on which the Lease ends and Lessee is obligated to return the land to Lessor unless there are other stipulations in the Lease. There is no obligation for Lessor to negotiate a new Lease with Lessee after the Expiration of the Lease.


Surrender Clause: Provision(s) in the Lease which mandate(s) that AT THE END OF THE LEASE, the Lessee has to surrender the

Property and the land back to the Lessor. Some provisions in the Surrender Clause include the stipulation as to who receives any


improvements and what conditions apply. The conditions spelled out in the Surrender Clause of the Lease, provide if the Lessor keeps the improvements or if Lessee is obligated to remove the improvements or face Lessor’s costs for doing so, or if Lessee has the right to remove the improvements in a certain timely manner. Hawaii law may limit or even change Lessor’s rights under the Lease.






Leasehold Example: Alaeloa


Alaeloa is a highly desirable condominium community located in Napili.  The Alaeloa Leasehold estate was created in 1965 and originally was set to expire in 2024, with ground lease rents determined every ten years by the appraised value of the property as if it were unencumbered and there were no improvements.  The ground rents are determined by the agreed upon appraised value times a specified interest rate or the then prevailing rate of similar properties that are similarly located.   


In 2010, the AOAO and the Fee Owners reached an agreement, whereby the lease was extended to December 31, 2059.  Yearly lease rents were established through 2019 and renegotiations in 2020, 2025, 2035, and 2045.


Considerations when evaluating Leasehold vs. Fee Simple ownership


There are both pros and cons involved in Leasehold ownership. 




A Leasehold property may be more affordable than a Fee Simple Property of a similar size/location.  It may also allow you to own in a very unique location (like Alaeloa).


When there is less than 35 years left on the lease, most lenders will not approve a 30 year conventional mortgage, meaning that buyers may need to either pay cash or finance with a 15 year mortgage). 


With 30 years or less remaining on the lease, the property will not qualify for a 1031 tax-deferred exchange.


Lease rents renegotiate, so an owner of a leasehold property does need to be aware that their monthly lease rents could increase with each renegotiation.


Lease rents are separate from condominium maintenance fees, which typically cover maintenance of the common element and the reserve funds for repairs to the common element.


Property taxes are the responsibility of the Lessee


The Lessor is under no obligation to renegotiate or extend the lease or sell the Fee Simple Interest.




Who should I consult regarding the implications of owning a leasehold property?


This article is an overview of some of the differences between types of ownership and not intended as legal or tax advice. When purchasing either a leasehold or fee simple property, it is advised to consult with your CPA, Financial Advisors, and Legal Professionals to determine what implications there are for you personally.


Resources




Guide to Hawaii's Residential Leasehold Condominiums, Cooperative Housing Corporations, and Planned Urban Developments


*Definitions taken from the Hawaii Association of Realtor's Standard Forms, Residential Leasehold Disclosure


 ]]> </description>
    <pubDate>Thu, 18 Jan 2018 13:34:00 -1000</pubDate>
</item>
<item>
    <guid>http://www.luxuryrealestatemaui.com/blog/alaeloa-short-term-rental-and-market-update.html</guid>
    <link>http://www.luxuryrealestatemaui.com/blog/alaeloa-short-term-rental-and-market-update.html</link>
        <author>cb@luxuryrealestatemaui.com (Courtney M. Brown)</author>
        <title>Alaeloa: Short Term Rental Update</title>
    <description> <![CDATA[ 
Alaeloa: Short Term Rental Update





Alaeloa is one of Maui's best kept secrets.  This secluded, gated community of just 42 residences is nestled along West Maui's shore complete with a mango grove and oceanfront pool. Built in 1964, this charming enclave of cottages and duplexes in a residential community, has been called the &quot;Pebble Beach of the Pacific&quot; and has been a much loved vacation destination over the years.  


Maui County defines anything under 180 days as a short term or a transient vacation rental, which is typically not permitted in Residential Districts. Enter the recent question of vacation rentals at Alaeloa:


Maui County Code allows for TVR's in residentially zoned planned developments consisting solely of duplexes or multi-family dwelling units that had had transient vacation rental use on or before April 20, 1981.  While Alaeloa was built in 1964, there was some question by the Maui County Zoning Enforcement Department as to whether Alaeloa was grandfathered in to allow Transient Vacation Rentals (TVR's).  


The Alaeloa Board of directors sought to address the question as to whether short term or vacation rentals were permitted with the county.  The result was the adoption of Maui Ordinance 4369 per a letter issued by the Board of Directors this past week:


&quot;We are pleased to report that as a result of a new Maui Ordinance 4369, transient vacation rentals (&quot;TVR&quot;) which are in compliance with Alaleloa's longstanding CCRs are no recognized as being officially permitted by Maui County in Alaeloa.&quot;


It should be noted that Alaeloa has a longstanding rental policy with a minimum of a 30 day rental (or no more than one rental per 30 day period), which is unchanged by the new ordinance.  


According to the county site, as of this post, Ordinance 4369 has yet to be codified.


The ability to rent is subject to county and state laws and is subject to change.





 
 ]]> </description>
    <pubDate>Fri, 09 Dec 2016 16:01:00 -1000</pubDate>
</item>
<item>
    <guid>http://www.luxuryrealestatemaui.com/blog/alaeloa-maui-new-listing-and-market-update.html</guid>
    <link>http://www.luxuryrealestatemaui.com/blog/alaeloa-maui-new-listing-and-market-update.html</link>
        <author>cb@luxuryrealestatemaui.com (Courtney M. Brown)</author>
        <title>Alaeloa Maui | New Listing and Market Update</title>
    <description> <![CDATA[ 
Alaeloa MauiNew Listing and Market Update


Alaeloa is truly one of Maui's hidden gems...an enclave of just 42 residences on 13 acres, this private, gated community is situated on a private oceanfront cove in Napili.  Through a large mango grove there is direct access to a crescent beach and the surf break at Little Makaha.  Along the ocean is a large heated saline pool, along with a relaxing Pavilion with kitchen, bathrooms and showers, kayak and board storage areas. 





The oceanfront pool at Alaeloa


Introducing Alaeloa 40


This two bedroom, two bathroom condominium residence is one of only two townhouse units on property.  The two story floor plan provides views from both levels, and has been extensively refurbished and beautifully furnished. 





The kitchen opens to the great room and features upgraded appliances and fixtures, new cabinets and granite counter tops.  The Master Bedroom has a private lanai, with lovely ocean and outer island views. 





Both the downstairs and upstairs living spaces open up to large outdoor living spaces allowing you to enjoy Maui's beautiful weather, the ocean, and the island breezes.  





Alaeloa Real Estate Market Overview


Current Listings*: 2Price Range: $750,000 to $2,479,000 Leasehold2016 Sales YTD:  62016 Sales Range: $610,299 to $1,875,000 Leasehold2016 Sales Volume: $5,397,7992016 Average Sales Price: $899,633 Leasehold


Alaeloa Market Commentary: as Alaeloa offers both oceanfront and ocean view condominium residences, as well single units and duplexes, there is a broad variation in values.  Five of the sales were ocean view, and one oceanfront at $1,875,000 Leasehold.  Alaeloa offers the feeling of a private home, with condominiumized grounds, which is attractive to buyers seeking the privacy of a home and the ease of maintenance of a condominium.    


Sales in 2016 have picked up dramatically at Alaeloa over 2015.  Last Year, there were just two sales that averaged $617,500.  It should be noted that with such a limited number of units, the low sales in 2015 relative to 2016 may be indicative of supply vs. demand.


What is the Leasehold Agreement at Alaeloa?


A leasehold interest is created when the owner of a property enters into an agreement to lease the property for a specified period of time. As the purchaser of a leasehold property, you are acquiring the right to occupy and use the leased property for a specified period of time stated in the lease agreement. 


The Alaeloa leasehold estate was created in 1965 and runs to December 31, 2059. Ground leases are determined every ten years by the appraised value of the property as if it were unencumbered and there were no improvements on the property. The Alaeloa lease stipulates that ground rents are determined by the agreed upon appraised value times a specified interest rate or the then prevailing rate of similar properties similarly located. Yearly lease rents are established at Alaeloa through 2019.


Future ground leases will be established from 2020 through 2024, 2025 through 2034, 2035 through 2044, and 2045 through 2059. Most leases contain a surrender clause that states that the land and improvements revert back to the landowner at the expiration of the lease and there is no guarantee that a leasehold property will not revert unless agreed upon and advertised as Leasehold-Fee Available. However, some Lessors are negotiating with Lessees to extend the leases and in some cases we are seeing leasehold properties being converted to fee simple ownership, meaning in a condominium you own the unit as well as a percentage interest in the fee (land) and its improvements.  


We recommend purchasers of leasehold property seek legal counsel to review the ground lease agreements and leasehold documents.


*All data above is taken from the MLS at the time of this post.  Active listings follow below.



 ]]> </description>
    <pubDate>Wed, 07 Sep 2016 15:07:00 -1000</pubDate>
</item>
    </channel>
</rss>