Barnwell, through several subsidiaries, has held a 10-20% minority interest in oceanside developments in the North Kona District of the Big Island of Hawaii for many years. This resort area is anchored by the ultra-luxury Kūkiʻo and Hualalai Resorts and the 877-acre development parcel is adjacent to the Four Seasons Resort Hualalai at Historic Kaupulehu.
Buyers of the initial 80-lots can apply for membership to the exclusive Kūkiʻo Golf and Beach Club. In addition to some of the most luxurious real estate in Hawaii, the private Kūkiʻo Club includes multiple recreation opportunities, including pools, four tennis courts, a full basketball court, world-class spa and ﬁtness facility, dining and bar pavilions, a 10-hole Tom Fazio-designed short course, and an unmatched ocean sports program. The Kūkiʻo 18-Hole Tom Fazio-designed championship golf course sits above on the slopes of Mt. Hualalai.
To date 82 homesites have been developed and 73 of these sold, with prices ~$2MM per acre yielding approximately $90MM net to Barnwell’s interest since inception. The remaining 420 developable acres are entitled for and can support up to 350 additional homesites. These sites further benefit from adjacent infrastructure to support platting and development. The island presents high barriers to new competitors given regulatory hurdles, difficult terrain, and land prices. The resulting supply/demand imbalance strongly suggests that such a ready-to-build project will command significant value and future cashflow.