It has new owners, but any future development awaits Supreme Court
Turtle Bay Resort officially came under new ownership when lenders took title to the property last week, but the change will do little to create more certainty for the future of the 858-acre resort on Oahu’s North Shore.
The big question hanging over the property is whether the consortium of lenders that took back the property from Oaktree Capital Management in lieu of foreclosure will carry through on a 24-year-old development plan to build thousands of additional hotel and condominiums units.
More at Pacific Business News
Showing posts with label oaktree capital management. Show all posts
Showing posts with label oaktree capital management. Show all posts
Sunday, March 07, 2010
Wednesday, February 24, 2010
Oahu’s Turtle Bay Resort has new owners
The Turtle Bay Resort on Oahu’s North Shore is officially under new ownership.
A consortium of international investment management firms took back the property from Oaktree Capital Management in a deed in lieu of foreclosure transaction that closed on Tuesday.
The 858-acre resort includes a 443-room hotel, two golf courses and a spa.
The consortium, which has managed the resort for nearly two years, already has spent $6 million to upgrade its infrastructure and hotel, including expanding Kuilima Drive from two to four lanes and upgrading the well, according to developer Stanford Carr, the resort’s interim property manager...
There are no immediate plans to build any additional hotels or condominiums at the resort.
More at Pacific Business News
A consortium of international investment management firms took back the property from Oaktree Capital Management in a deed in lieu of foreclosure transaction that closed on Tuesday.
The 858-acre resort includes a 443-room hotel, two golf courses and a spa.
The consortium, which has managed the resort for nearly two years, already has spent $6 million to upgrade its infrastructure and hotel, including expanding Kuilima Drive from two to four lanes and upgrading the well, according to developer Stanford Carr, the resort’s interim property manager...
There are no immediate plans to build any additional hotels or condominiums at the resort.
More at Pacific Business News
Monday, September 29, 2008
Turtle Bay plan gets another extension from the city
The city has granted a third six-month extension on an application to subdivide land at the Turtle Bay Resort, allowing preparatory work to move ahead but stopping short of giving the owner what it wants — permission to develop the property fully.
More at the Honolulu Advertiser
More at the Honolulu Advertiser
Friday, December 21, 2007
Hawaii resort owner defaults on $283M loan
Financial difficulties deepened yesterday for the owner of the Turtle Bay Resort, which is planning to build five new hotels on O'ahu's North Shore.
More at Honolulu Advertiser
More reporting at Pacific Business News
Comments have ranged, but the majority sees this as the next step in Oaktree's departure from the North Shore resort. With financial woes hitting them as early as June of this year, it looks that the expansion plans are far more less likely to happen unless parent company Oaktree infuses some of their reported $55 billion in this struggling resort.
The vulture fund company may be trying tactics to reduce the underestimated resistance, but the PR battle has little chance of being repaired.
More at Honolulu Advertiser
More reporting at Pacific Business News
Comments have ranged, but the majority sees this as the next step in Oaktree's departure from the North Shore resort. With financial woes hitting them as early as June of this year, it looks that the expansion plans are far more less likely to happen unless parent company Oaktree infuses some of their reported $55 billion in this struggling resort.
The vulture fund company may be trying tactics to reduce the underestimated resistance, but the PR battle has little chance of being repaired.
Friday, October 12, 2007
On-Air Panel Discussion concerning Turtle Bay Resort
Defend Oahu Coalition board members Mark Cunningham and Choon James will be guests on Hawaii Public Radio (KHPR 88.1 FM) next Wednesday, October 17, 2007 from 5:00 to 6:00 pm. The discussion will focus on the proposed Turtle Bay Resort expansion announced by parent company Oaktree Capital Management.
Saturday, August 04, 2007
L.A. Hedge Fund Facing Opposition on Hawaiian Plans
San Diego Business Journal
By SARAH FILUS - 7/23/2007
Los Angeles Business Journal Staff
Six years after gaining full ownership of Turtle Bay Resort in Hawaii, one of the only oceanfront getaways on Oahu's quiet North Shore, Oaktree Capital finds itself involved in a growing controversy over its plans to further develop the property.
The L.A.-based vulture hedge fund announced last year it planned to expand the 443-unit resort and was looking for either a financial partner or a buyer for the entire 880-acre site.
Hilton Hospitality Inc., Beny Alagem's Alagem Capital and Michael Dell's MSD Capital all were said to be interested in the site, but the announcement also caused a public outcry, protests and lawsuits that may have chilled any deal.
More recently, Starwood Hotels & Resorts Worldwide Inc., the owner of the Sheraton and Westin brands and a major developer of time shares, fell out of active negotiations for a purchase or partnership, though Hawaiian media reports indicate the company has not completely scuttled a deal.
"When all the press coverage and uproar sprang up from the local community about the expansion, that became one of the major reasons that investment firms who looked at it didn't want to pursue it," said Mike Hamasu, the consulting and research director for Colliers Monroe Friedlander Inc. in Honolulu. "There is an extreme sensitivity to development in Hawaii, especially along the North Shore."
Oaktree, through its subsidiary Kuilima Resort Co., wants to add about 3,500 hotel and condominium units to the property it acquired full control of in 2001. It has already spent $60 million to renovate the existing hotel and to add a condominium complex called Ocean Villa. In 1998, it had teamed with developer Bill Mills to gain an interest in the resort.
The resort, originally developed by Prudential Insurance Co. and Del Webb Corp., has expansion entitlements from the city of Honolulu that date back to 1986 but were never pursued. Since that time, though, opposition has grown to further construction of the largely undeveloped North Shore.
Keep the North Shore Country, a group opposed to the resort's planned expansion, sued for an environmental impact report. The group also alleges the development will disturb ancient Hawaiian burial grounds. The suit was thrown out once and last month it was appealed, with a decision still pending.
"(Honolulu) allowed the developer to expand as if nothing has changed since 1986," said Gil Riviere of Keep the North Shore Country. "Our position is that everything has changed. Even the impact of those 4,000 units is greater now and they should be studied."
New York-based real estate investment banking firm, Eastdil Secured LLC is helping to market the property.
Oaktree representatives declined to comment.
Fund closure
Turtle Bay is not Oaktree's first venture in Hawaii. During the 1990s recession, Oaktree purchased a number of high-end properties on Hawaii.
The North Shore controversy comes as Oaktree is looking to divest the resort and close the investment fund that owns the property. The OCM Real Estate Opportunity Fund was set to expire last year, according to a story by Pacific Business News.
However, Lloyd Greif, chief executive of L.A.-based investment banking firm, Greif & Co., said it is not unusual for companies to get fund extensions if they still have holdings they would like to sell off.
Typically, investment funds such as OCM Real Estate Opportunity Fund have 10-year life spans, he said. The money raised by institutional investors is usually spent acquiring assets during the first three to four years of the fund's life. From years four and on, the holdings are divested and money is distributed to the investors.
"Oaktree has very savvy investors. It makes perfect sense to sell," said Greif. "A few years ago, people were still trying to figure out what life was going to be like after 9/11. Now, there is a lot of money out there and people are spending it on themselves. They want to go to exotic places and Hawaii is an exotic place. I expect that Oaktree will come out smelling like a rose."
By SARAH FILUS - 7/23/2007
Los Angeles Business Journal Staff
Six years after gaining full ownership of Turtle Bay Resort in Hawaii, one of the only oceanfront getaways on Oahu's quiet North Shore, Oaktree Capital finds itself involved in a growing controversy over its plans to further develop the property.
The L.A.-based vulture hedge fund announced last year it planned to expand the 443-unit resort and was looking for either a financial partner or a buyer for the entire 880-acre site.
Hilton Hospitality Inc., Beny Alagem's Alagem Capital and Michael Dell's MSD Capital all were said to be interested in the site, but the announcement also caused a public outcry, protests and lawsuits that may have chilled any deal.
More recently, Starwood Hotels & Resorts Worldwide Inc., the owner of the Sheraton and Westin brands and a major developer of time shares, fell out of active negotiations for a purchase or partnership, though Hawaiian media reports indicate the company has not completely scuttled a deal.
"When all the press coverage and uproar sprang up from the local community about the expansion, that became one of the major reasons that investment firms who looked at it didn't want to pursue it," said Mike Hamasu, the consulting and research director for Colliers Monroe Friedlander Inc. in Honolulu. "There is an extreme sensitivity to development in Hawaii, especially along the North Shore."
Oaktree, through its subsidiary Kuilima Resort Co., wants to add about 3,500 hotel and condominium units to the property it acquired full control of in 2001. It has already spent $60 million to renovate the existing hotel and to add a condominium complex called Ocean Villa. In 1998, it had teamed with developer Bill Mills to gain an interest in the resort.
The resort, originally developed by Prudential Insurance Co. and Del Webb Corp., has expansion entitlements from the city of Honolulu that date back to 1986 but were never pursued. Since that time, though, opposition has grown to further construction of the largely undeveloped North Shore.
Keep the North Shore Country, a group opposed to the resort's planned expansion, sued for an environmental impact report. The group also alleges the development will disturb ancient Hawaiian burial grounds. The suit was thrown out once and last month it was appealed, with a decision still pending.
"(Honolulu) allowed the developer to expand as if nothing has changed since 1986," said Gil Riviere of Keep the North Shore Country. "Our position is that everything has changed. Even the impact of those 4,000 units is greater now and they should be studied."
New York-based real estate investment banking firm, Eastdil Secured LLC is helping to market the property.
Oaktree representatives declined to comment.
Fund closure
Turtle Bay is not Oaktree's first venture in Hawaii. During the 1990s recession, Oaktree purchased a number of high-end properties on Hawaii.
The North Shore controversy comes as Oaktree is looking to divest the resort and close the investment fund that owns the property. The OCM Real Estate Opportunity Fund was set to expire last year, according to a story by Pacific Business News.
However, Lloyd Greif, chief executive of L.A.-based investment banking firm, Greif & Co., said it is not unusual for companies to get fund extensions if they still have holdings they would like to sell off.
Typically, investment funds such as OCM Real Estate Opportunity Fund have 10-year life spans, he said. The money raised by institutional investors is usually spent acquiring assets during the first three to four years of the fund's life. From years four and on, the holdings are divested and money is distributed to the investors.
"Oaktree has very savvy investors. It makes perfect sense to sell," said Greif. "A few years ago, people were still trying to figure out what life was going to be like after 9/11. Now, there is a lot of money out there and people are spending it on themselves. They want to go to exotic places and Hawaii is an exotic place. I expect that Oaktree will come out smelling like a rose."
Thursday, August 02, 2007
Proposed tax worries owner of Turtle Bay
By Dennis Camire
Gannett News Service
WASHINGTON — A top official of Oaktree Capital Management, owner of Turtle Bay Resort on O'ahu's North Shore, says he is concerned proposed tax increases on managers of private equity and hedge funds would encourage them to keep their operations shielded from public scrutiny.
Read more at Honolulu Advertiser
Gannett News Service
WASHINGTON — A top official of Oaktree Capital Management, owner of Turtle Bay Resort on O'ahu's North Shore, says he is concerned proposed tax increases on managers of private equity and hedge funds would encourage them to keep their operations shielded from public scrutiny.
Read more at Honolulu Advertiser
Tuesday, July 03, 2007
Church pressures Oaktree
The owner of Turtle Bay also manages funds for the United Methodist Church
The pension and benefits arm of the United Methodist Church is pressuring the owner of Turtle Bay Resort to resolve its dispute with opponents of the resort's planned expansion.
Owner Oaktree Capital Management LP, which manages some of the $15 billion in assets of the General Board of Pension and Health Benefits of the United Methodist Church, has come under fire after Hawaii parishioners voiced concerns about whether the company is adhering to the church's strict social principles that deal with fairness, equity and the environment.
More at Honolulu Star Bulletin
More at Honolulu Star Bulletin
Tuesday, June 26, 2007
Turtle Bay - It's absurd to allow old plan to be in force
Bob Nakata's June 19 commentary listing all the good reasons for the city to deny building permits to Oaktree Capital Management LLC should be read out loud to our City Council and Mayor Mufi Hannemann.
It is absurd to allow Oaktree, or anyone else, to build anything with a 20-year-old agreement.
Anyone who has come to the North Shore during the last 20 years has noticed it can now take up to two hours to get from Hale'iwa to Sunset Beach.
There is also a huge housing shortage and shops and restaurants have a hard time finding workers. And our ocean is full of sediment from developments that is killing our coral reefs and fish.
Whatever legal reasons the Circuit Court judge had for allowing a 20-year-old agreement to stand without another environmental impact statement does not mean that the city has to ignore the obvious changes on the North Shore in the last 20 years.
The short-term benefits that any politicians, or a handful of North Shore residents, might have for supporting Oaktree's expansion are far outweighed by the problems that this project will bring to our state.
Lorenn Walker
Waialua
It is absurd to allow Oaktree, or anyone else, to build anything with a 20-year-old agreement.
Anyone who has come to the North Shore during the last 20 years has noticed it can now take up to two hours to get from Hale'iwa to Sunset Beach.
There is also a huge housing shortage and shops and restaurants have a hard time finding workers. And our ocean is full of sediment from developments that is killing our coral reefs and fish.
Whatever legal reasons the Circuit Court judge had for allowing a 20-year-old agreement to stand without another environmental impact statement does not mean that the city has to ignore the obvious changes on the North Shore in the last 20 years.
The short-term benefits that any politicians, or a handful of North Shore residents, might have for supporting Oaktree's expansion are far outweighed by the problems that this project will bring to our state.
Lorenn Walker
Waialua
Thursday, June 21, 2007
Oahu can't support Turtle Bay expansion
By Bob Nakata
The proposed massive expansion of the Turtle Bay Resort by Oaktree Capital Management LLC, and its subsidiary, Kuilima Resort Co., threatens to turn O'ahu into one continuous urban center. The huge impact it will have on traffic will make it impossible to feel like you are in the "country" anywhere on O'ahu.
More at the Honolulu Advertiser
The proposed massive expansion of the Turtle Bay Resort by Oaktree Capital Management LLC, and its subsidiary, Kuilima Resort Co., threatens to turn O'ahu into one continuous urban center. The huge impact it will have on traffic will make it impossible to feel like you are in the "country" anywhere on O'ahu.
More at the Honolulu Advertiser
Tuesday, May 22, 2007
Is Turtle Bay’s Expansion Good for the North Shore?
Hawaii Business Magazine
Defend Oahu's Choon James counters Turtle Bay's Project Manager Ralph Makaiau on the merits of the proposed development.
Q: Is Turtle Bay’s Expansion Good for the North Shore?
RALPH MAKAIAU
project manager, Kuilima Resort Co.
A: Balanced, responsible development that takes into account the needs of the community was the intent of the Kahuku community that originally envisaged the Turtle Bay plan and has been embraced by Kuilima Resort Co. since its involvement in the project. Through lengthy collective effort and negotiations, the developer and community leaders each received what they wanted. The preservation of vast open spaces, easy access to beaches, shoreline setbacks that exceed the standard for developers to protect culturally sensitive areas, and height restrictions on new construction were among the stipulations in the Unilateral Agreement, a legally binding document that locked in the developer and community to keep their promises to each other. Creating another high-density Waikiki clearly was never part of the plan.
The agreement served as a model of collaboration for other developers. Now, once again, Kuilima has become a case study for Hawaii’s business community because of significant implications for all developers. Over the years, the Kahuku property has switched hands and the downswing of the local economy through the 1980s and ’90s halted development throughout the Islands. At a time when Hawaii’s economy is picking up and Kuilima is ready to move forward, new legislation and activist groups attempt to undermine the community’s entitlements. Unfortunately, as is often the case, a loud, vocal minority drowns out the silent majority in the community.
Despite Hawaii’s low unemployment rate, Koolauloa (Oahu’s Northeast Side) is in dire need of revitalization. We envision a vibrant, flourishing community without compromising the rural feel unique to the area. Kahuku Hospital faces financial challenges without support from businesses and the community to keep its doors open. A strong economic driver in the area is vitally necessary to prevent homelessness and other social ills. There is much more we can do for the community, and Kuilima has an important role to play in Koolauloa.
CHOON JAMES
Defend Oahu Coalition Boardmember
A: International investment groups like Oaktree Capital are exploiting Hawaii. Paradise is becoming a playground for the rich. These corporations profit millions of dollars at the expense of Hawaii’s people, culture and environment. Without protection, North Shore will become another ritzy resort a la Kaanapali, Maui. Local folks will eventually be priced out and pushed out. (The cheapest Turtle Bay Resort Ocean Villa condo is $1.5 million)
The Golden Rule – the one with the gold rules – buys top-gun consultants who quietly ramrod permitting processes and attorneys who insinuate lawsuits if they don’t get what they want, thereby paralyzing elected politicians from representing their constituents.
Five new hotels with an additional 3,500 units will inevitably trigger the “Multiplier Effect.” Oaktree dangles the carrot of 2,500 jobs. But, the present 487-unit hotel perennially has trouble filling employment vacancies. Needed imported labor will trigger more competition for housing, educational/social services, and aggravate already chronic traffic congestion. Oaktree touts 100 affordable homes. Twenty-five-hundred (imported) jobs and 100 homes? Do the math. What are the real community benefits?
When corporate investors reap their dividends and leave the Islands, all of Hawaii’s tax-payers will pay for the inevitable impacts – traffic woes, infrastructure improvement, rising property values, limited beach access, water/electricity resources, and an irretrievably vanished country lifestyle that kamaainas hold dear and precious.
Oaktree: We are your neighbors. We are hotel workers, unionists, kupunas, teachers, firemen, mothers, uncles, environmentalists, the everyman. You recycle certain hotel employees as your community support. But 76 percent of Hawaii residents are against building a new hotel.
Oaktree claims a new era of “openness.” Then why fight against updating the irrelevant 1985 Environmental Impact Statement for this resort expansion?
Oaktree: Live Aloha! No PR games, no smoke-and-mirror maneuverings. Let’s resurrect the defunct 1986 Unilateral Agreement’s Kuilima North Shore Strategy Planning Committee for a transparent public dialogue.
Defend Oahu's Choon James counters Turtle Bay's Project Manager Ralph Makaiau on the merits of the proposed development.
Q: Is Turtle Bay’s Expansion Good for the North Shore?
RALPH MAKAIAU
project manager, Kuilima Resort Co.
A: Balanced, responsible development that takes into account the needs of the community was the intent of the Kahuku community that originally envisaged the Turtle Bay plan and has been embraced by Kuilima Resort Co. since its involvement in the project. Through lengthy collective effort and negotiations, the developer and community leaders each received what they wanted. The preservation of vast open spaces, easy access to beaches, shoreline setbacks that exceed the standard for developers to protect culturally sensitive areas, and height restrictions on new construction were among the stipulations in the Unilateral Agreement, a legally binding document that locked in the developer and community to keep their promises to each other. Creating another high-density Waikiki clearly was never part of the plan.
The agreement served as a model of collaboration for other developers. Now, once again, Kuilima has become a case study for Hawaii’s business community because of significant implications for all developers. Over the years, the Kahuku property has switched hands and the downswing of the local economy through the 1980s and ’90s halted development throughout the Islands. At a time when Hawaii’s economy is picking up and Kuilima is ready to move forward, new legislation and activist groups attempt to undermine the community’s entitlements. Unfortunately, as is often the case, a loud, vocal minority drowns out the silent majority in the community.
Despite Hawaii’s low unemployment rate, Koolauloa (Oahu’s Northeast Side) is in dire need of revitalization. We envision a vibrant, flourishing community without compromising the rural feel unique to the area. Kahuku Hospital faces financial challenges without support from businesses and the community to keep its doors open. A strong economic driver in the area is vitally necessary to prevent homelessness and other social ills. There is much more we can do for the community, and Kuilima has an important role to play in Koolauloa.
CHOON JAMES
Defend Oahu Coalition Boardmember
A: International investment groups like Oaktree Capital are exploiting Hawaii. Paradise is becoming a playground for the rich. These corporations profit millions of dollars at the expense of Hawaii’s people, culture and environment. Without protection, North Shore will become another ritzy resort a la Kaanapali, Maui. Local folks will eventually be priced out and pushed out. (The cheapest Turtle Bay Resort Ocean Villa condo is $1.5 million)
The Golden Rule – the one with the gold rules – buys top-gun consultants who quietly ramrod permitting processes and attorneys who insinuate lawsuits if they don’t get what they want, thereby paralyzing elected politicians from representing their constituents.
Five new hotels with an additional 3,500 units will inevitably trigger the “Multiplier Effect.” Oaktree dangles the carrot of 2,500 jobs. But, the present 487-unit hotel perennially has trouble filling employment vacancies. Needed imported labor will trigger more competition for housing, educational/social services, and aggravate already chronic traffic congestion. Oaktree touts 100 affordable homes. Twenty-five-hundred (imported) jobs and 100 homes? Do the math. What are the real community benefits?
When corporate investors reap their dividends and leave the Islands, all of Hawaii’s tax-payers will pay for the inevitable impacts – traffic woes, infrastructure improvement, rising property values, limited beach access, water/electricity resources, and an irretrievably vanished country lifestyle that kamaainas hold dear and precious.
Oaktree: We are your neighbors. We are hotel workers, unionists, kupunas, teachers, firemen, mothers, uncles, environmentalists, the everyman. You recycle certain hotel employees as your community support. But 76 percent of Hawaii residents are against building a new hotel.
Oaktree claims a new era of “openness.” Then why fight against updating the irrelevant 1985 Environmental Impact Statement for this resort expansion?
Oaktree: Live Aloha! No PR games, no smoke-and-mirror maneuverings. Let’s resurrect the defunct 1986 Unilateral Agreement’s Kuilima North Shore Strategy Planning Committee for a transparent public dialogue.
Saturday, May 12, 2007
Report casts doubt on Turtle Bay's finances
The owner of the Turtle Bay Resort on O'ahu's North Shore yesterday declined to comment on a published report that the company may not have enough cash to meet a loan payment due at the end of June.
The full story at the Honolulu Advertiser
The full story at the Honolulu Advertiser
Wednesday, February 21, 2007
DOC Rally at Honolulu Hale/City Hall
Defend Oahu Coalition has organized a rally to occur in front of Honolulu Hale/City Hall (530 South King Street) on Thursday February 22, 2007 starting from 9 am. They are calling upon the Mayor (Mufi Hanneman) to listen to the community and substantial opposition to the Turtle Bay Resort expansion plans. They are calling upon the Mayor to act.
The Turtle Bay Resort expansion plans were announced early last year among overwhelming opposition. Still, the parent company Oaktree Capital Management has pressed on with plans.
Oaktree is a $30 billion investment company. Oaktree's investment specialty is in markets where information for competitors is limited, sometimes known as "inefficient" markets. Such focus has been described by Business Week magazine as a vulture fund.
The Defend Oahu Coalition is a diverse group of community residents, environmentalists, activists and religious leaders all working together towards one goal: protecting communities on Oahu from the dangerous effects of large scale development. They believe that the beautiful North Shore is for all Oahu residents as well as visitors, and is committed to ensuring that it will continue to be a resource for generations to come.
The Turtle Bay Resort expansion plans were announced early last year among overwhelming opposition. Still, the parent company Oaktree Capital Management has pressed on with plans.
Oaktree is a $30 billion investment company. Oaktree's investment specialty is in markets where information for competitors is limited, sometimes known as "inefficient" markets. Such focus has been described by Business Week magazine as a vulture fund.
The Defend Oahu Coalition is a diverse group of community residents, environmentalists, activists and religious leaders all working together towards one goal: protecting communities on Oahu from the dangerous effects of large scale development. They believe that the beautiful North Shore is for all Oahu residents as well as visitors, and is committed to ensuring that it will continue to be a resource for generations to come.
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