Waikiki Banyan Leased-Fee information  -January 28, 2012-   Aloha Waikiki Banyan owners, I just returned from a presentation to owners for the purchase of the Lease-Fee interest at the Waikiki Banyan. This is the 3rd offering.  You should be receiving a packet in the mail from Peter Savio's company, Hawaiian Island Homes, Ltd, which is the Seller's (Queen Lili'uokalani Trust) broker offering the Lease-Fee interest.  If you purchase there is a company, Becker who has a contractual interest (Sandwich position) which will continue unless Becker offers a buy out in the future.  Presently Becker is receiving approximately $21/mo of the present lease rent collected and according to Peter, the monthly paid to Becker would remain at approximately $21/mo until December 1, 2020.  It automatically goes away in 2035.  The land owner presently is Kawaiahao Church and the Queen Lili'uokalani Trust.  Kawaiahao is selling their interest to Queen Lili'uokalani Trust and the trust is in turn selling to the owners.  The association has the first right of refusal, however, it appears the Lessee (you) will have the primary right to purchase the Lease-Fee.  You must decide by May 29, 2012 and Closing will then take place no later than August 30, 2012.  There may be a possibility that closing could be possible within the next 45-days.  In the package will be a complete explanation, cost breakdown and contract.  If you choose to have an outside broker represent you it will not cost you any extra.  If the Seller's agent, Hawaiian Island Homes, Ltd. is the only agent involved they will be paid a 1% commission from the Queen Lili'uokalani Trust, however, if you have James S. More (R) CRS represent you, no additional commission will be paid by you and Jim will be representing you. Peter also explained if you did not purchase the Lease-Fee interest and when the new lease rent is determined in December 2010 it probably would not increase that much due to the fact the new lease rent will be based on the value of the land today with no building.  Since the building was built, the land has be down-zoned so today you could only build 300-400 units instead of the current 876.  The Lease rent increased from $79./mo. to $166./mo. until December 1, 2020.  If you sign a purchase agreement for the Lease-fee interest you will have 90-day to rescind at no cost to you.  I have uploaded to my web site a copy (10-pages) of the contract and Lease-Fee cost for each apartment.  Here is the address:  Waikiki Banyan Lease-fee contract Except for five (5) apartments the price for the Leased-Fee is now $103,600. plus closing costs.  The costs are shown using your CPR number.  If you have a real estate agent assisting you in the purchase or sale of your apartment please call them for further clarification.  If you do not have an agent allow me to assist you in this process.  Please indicate under IV on the first page of the Lease-Fee contract that James S. More (R) of Locations Locations LLC would be your agent in the Lease-Fee purchase (see Sales Contract) Please let me know if you have any further questions. Aloha for now,                 The above information is for informational purposes only and should always be verified by the Queen Lili'uokalani Trust

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