Case Study

The Oahuan Tower

56-unit Honolulu conversion

Property location

1710 Makiki St, Honolulu, Hawaii

Total Units

State

Property details

Context that shaped the conversion

These project specifics help explain why the conversion path and results differed from one building to another.

Underlying Mortgage

Yes - defaulted bank loan from land purchase

The transformation

From constraints to outcomes

Each project began with a specific set of financing, legal, or market challenges and moved through a different path to a successful outcome.

Before conversion

The constraints

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 documented outcomes

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.

Project record