# MVW sells [parcels nearby] Kauai Lagoons



## FractionalTraveler (Jul 30, 2014)

From last Thursday's (7/24) second quarter conference call.  MVCI formally announces the sale of its oceanfront Kauai Lagoons property.

The transaction is expected to close by the end of this year. The buyer and details of the transaction are not disclosed until the transaction is completed.

FT


----------



## DeniseM (Jul 30, 2014)

Oh darn!  I bet it's not going to be a timeshare any more, and I always wanted to stay there!


----------



## mjm1 (Jul 30, 2014)

I believe the Marriott timeshare sales there were all within the DC points program, but is that right?  If any weeks were sold as timeshares, I assume those would continue to operate in that manner.


----------



## FractionalTraveler (Jul 30, 2014)

mjm1 said:


> I believe the Marriott timeshare sales there were all within the DC points program, but is that right?  If any weeks were sold as timeshares, I assume those would continue to operate in that manner.



I believe only a handful of residential/fractional units were ever sold as part of the Ritz Carlton Club.

FT


----------



## puckmanfl (Jul 30, 2014)

good evening

So instead of adding new Trust Properties......

They are eliminating old ones...

Glad I didn't "top off"


----------



## GregT (Jul 30, 2014)

This will be interesting to see what they do with that property.   I can't tell if this means they sold the timeshare building, or if they sold the golf course and the (many) undeveloped parcels of land, including where the Ritz Carlton was going to go.

Can the Trust sell units once they've been conveyed?   

It is possible that the building will remain intact as a timeshare while the new owner completes the broader Kauai Lagoons development.

Will be interesting to track-- thanks for posting this!

Best,

Greg


----------



## SueDonJ (Jul 30, 2014)

mjm1 said:


> I believe the Marriott timeshare sales there were all within the DC points program, but is that right?  If any weeks were sold as timeshares, I assume those would continue to operate in that manner.



Weeks were sold but by far the majority of the property has been conveyed to the DC Trust; see this older post.  The current numbers might be found on page 12 (I think?) at this link to the MVW 2013 Annual Report

FT, can you please copy/paste the related text from the earnings call transcript?  Thanks!


----------



## SueDonJ (Jul 30, 2014)

GregT said:


> This will be interesting to see what they do with that property.   I can't tell if this means they sold the timeshare building, or if they sold the golf course and the (many) undeveloped parcels of land, including where the Ritz Carlton was going to go.
> 
> Can the Trust sell units once they've been conveyed?
> 
> ...



I wonder if this will the first example (since the spin-off) of what happens as far as resort management when an MVW property is sold.  Best case, MVW could continue to manage the entire property for the new owner(s) so KL Weeks Owners and DC Trust Members could still have ownership usage options, and other Weeks Owners and DC Exchange Members could have exchange options.  Worst case?  What's in-between?


----------



## windje2000 (Jul 30, 2014)

Check the second paragraph of Note 5 at this link for some additional explanation of the proposed disposition-it is on page 11.

http://ir.marriottvacationsworldwide.com/secfiling.cfm?filingID=1193125-14-278152&CIK=1524358


----------



## dougp26364 (Jul 30, 2014)

What I'm getting is there is an agreement that may or may not be completed subject to several conditions for the sale of Kaui Lagoons. 

Also, there is mention of the sales of an undeveloped parcel on Singer Island. I wonder if that would be the vacant lot to the south of Oceana Palms?


----------



## dioxide45 (Jul 30, 2014)

GregT said:


> This will be interesting to see what they do with that property.   I can't tell if this means they sold the timeshare building, or if they sold the golf course and the (many) undeveloped parcels of land, including where the Ritz Carlton was going to go.
> 
> Can the Trust sell units once they've been conveyed?
> 
> ...



My guess is that they simply sold a lot of the undeveloped parcels. Mainly where they had started to build the Ritz Carlton Club and the other residential structures where you see the "road to nowhere". I doubt the timeshare that we call Kauai Lagoons was included. Kalanipu'u makes up 18MM points in the trust. While they could un-convey the the points, I simply don't see them doing this.


----------



## SueDonJ (Jul 30, 2014)

windje2000 said:


> Check the second paragraph of Note 5 at this link for some additional explanation of the proposed disposition-it is on page 11.
> 
> http://ir.marriottvacationsworldwide.com/secfiling.cfm?filingID=1193125-14-278152&CIK=1524358



Thanks!


> ... During the second quarter of 2014, we entered into a purchase and sale agreement to dispose of undeveloped and partially developed land, an operating golf course and related assets, in Kauai, Hawaii for $60 million in gross cash proceeds. The transaction contemplated by the purchase and sale agreement is subject to a number of closing conditions, and we cannot be certain that the transaction will be completed in a timely manner, or at all. If the transaction is completed as contemplated in the purchase and sale agreement, we will account for the sale under the full accrual method in accordance with the guidance on accounting for sales of real estate. ...



And from the earnings call, Stephen Weisz:


> ... Additionally, as I mentioned last quarter, we signed an agreement to sell our oceanfront property at Kauai Lagoons. The due diligence period for this agreement is 6 months, with an anticipated closing date in the fourth quarter of this year. I must emphasize, however, that until the sale is closed, there continues to be risk in completing this transaction. ...



It's not exactly clear how much of the KL property is involved here.  Haven't they been talking about unloading the golf course for a couple years now, with no mention of selling the actual Vacation Club and R-C buildings/units?


----------



## GregT (Jul 30, 2014)

SueDonJ said:


> During the second quarter of 2014, we entered into a purchase and sale agreement to dispose of undeveloped and partially developed land, an operating golf course and related assets, in Kauai, Hawaii



I don't think this affects the timeshare property.  It only mentions land and the golf course.

Once confirmed, this will be a huge plus for the property -- my issue with Kauai Lagoons was its isolation, and if the surrounding area/resort gets built up (thinking about the former Ritz Carlton location), that would be terrific.  Hopefully the timeshare building will have access to whatever property is built -- we will see.  

Best,

Greg


----------



## BocaBoy (Jul 31, 2014)

DeniseM said:


> Oh darn!  I bet it's not going to be a timeshare any more, and I always wanted to stay there!



The timeshare won't be affected.  You can still stay there.


----------



## dioxide45 (Jul 31, 2014)

FractionalTraveler said:


> I believe only a handful of residential/fractional units were ever sold as part of the Ritz Carlton Club.
> 
> FT



The best I can determine, 174 weeks were sold as weeks. There were perhaps 7 units sold as whole ownership Grand Residence. Though it is also possible that they simply sold all 52 weeks allocated to some of those. There are two of those that were reacquired or never sold in the first place since the last round of conveyances included two whole units conveyed to the trust.


----------



## puckmanfl (Jul 31, 2014)

good morning...

For What it's worth...

just did a sweep for summer 2015 at KL... 3 bedroom units in all view categories arer wide open thru Mid August 2015.... spotty at end of August 2015...

looks like we can still enjoy!!!!

These seen with my orphan:whoopie::whoopie: Legacy points...


----------



## SueDonJ (Jul 31, 2014)

GregT said:


> I don't think this affects the timeshare property.  It only mentions land and the golf course.
> 
> Once confirmed, this will be a huge plus for the property -- my issue with Kauai Lagoons was its isolation, and if the surrounding area/resort gets built up (thinking about the former Ritz Carlton location), that would be terrific.  Hopefully the timeshare building will have access to whatever property is built -- we will see.
> 
> ...



I agree, there are no indications that this is related to the timeshare property (so the thread title is being edited.)


----------



## FractionalTraveler (Jul 31, 2014)

Here is exactly what is for sale.  Seems like the existing Timeshare is not included but just about everything else surrounding it is.

http://contents.colliersarnold.com/pdf/properties/orl/SM-KauaiLagoonBrochureandCA.pdf

FT


----------



## mjkkb2 (Jul 31, 2014)

dougp26364 said:


> Also, there is mention of the sales of an undeveloped parcel on Singer Island. I wonder if that would be the vacant lot to the south of Oceana Palms?



it's a different parcel,  MVCI does not own the lot adjacent and to the South of Oceana Palms.


----------



## RBERR1 (Jul 31, 2014)

I wonder now will this be the strategy to use for any of the properties where they have land originally intended to build more timeshares but have not started to actually build.


----------



## GregT (Jul 31, 2014)

FractionalTraveler said:


> Here is exactly what is for sale.  Seems like the existing Timeshare is not included but just about everything else surrounding it is.
> 
> http://contents.colliersarnold.com/pdf/properties/orl/SM-KauaiLagoonBrochureandCA.pdf
> 
> FT



FT,

Nice digging -- interesting to read this.  There are alot more high-density units (condos/multi-family/timeshares) than I had anticipated.  This is planned to be a dense property -- perhaps we will even get more Marriott timeshares out of it. (?)

As you've noted, this explicitly rules out the Kauai Lagoons timeshare as being part of the offering.

Interesting stuff. Thanks for finding this!

Best,

Greg


----------



## SueDonJ (Jul 31, 2014)

RBERR1 said:


> I wonder now will this be the strategy to use for any of the properties where they have land originally intended to build more timeshares but have not started to actually build.



That's been MVW's intent since the spin-off from MAR; this example is taken from a 3/15/12 press release:


> ... Non-cash Impairment Charges - 2011. In preparation for the spin-off from Marriott International ("the Spin-Off"), management assessed the intended use of excess undeveloped land and built inventory and the current market conditions for those assets. On September 8, 2011, management approved a plan to accelerate cash flow through the monetization of certain excess undeveloped land in the United States, Mexico, and the Bahamas over the next three years and to accelerate sales of excess built Luxury fractional and residential inventory over the next eighteen to twenty-four months. ...



It isn't all of the undeveloped sites that they've planned on unloading, though.  Further development has since been announced/is being done at Grande Chateau, Ko 'Olina, Crystal Shores, etc.


----------



## tompk (Aug 13, 2014)

It appears that the Singer Island property they sold for $10-11 million was the former Rutledge Hotel that they bought for $14.5 million back in 2008.  The property is right next to the Palm Beach Marriott Hotel which is north of Oceana Palms.  So I guess there will be no Oceana Palms II.


----------



## dioxide45 (Aug 13, 2014)

tompk said:


> It appears that the Singer Island property they sold for $10-11 million was the former Rutledge Hotel that they bought for $14.5 million back in 2008.  The property is right next to the Palm Beach Marriott Hotel which is north of Oceana Palms.  So I guess there will be no Oceana Palms II.



Didn't they realize a gain on the transaction?. I like creative accounting where you take a loss of $3-$4MM but still realize a gain. I believe they were able to do this due to the write-down Marriott International took on many of the assets before the spinoff.


----------



## SnowDogDad (Aug 29, 2014)

*Marriott selling Kauai Lagoons project*

This is bound to make some people very unhappy....  

http://www.bizjournals.com/pacific/news/2014/08/29/marriott-selling-unfinished-kauai-lagoons-project.html 

The sale will include the Ritz-Carlton residences (which I believe started out as a Grand Residence) as well as the nearby subdivision and the golf course. 

I was on the property a few weeks ago and the unfinished portion of the development was a bit.... depressing.


----------



## FractionalTraveler (Aug 29, 2014)

Yes, at least now we know the potential buyer.

There is an ongoing discussion here: _[Posts moved; link to destination thread disabled.]_

FT


----------



## dioxide45 (Aug 30, 2014)

SnowDogDad said:


> This is bound to make some people very unhappy....
> 
> http://www.bizjournals.com/pacific/news/2014/08/29/marriott-selling-unfinished-kauai-lagoons-project.html
> 
> ...



The Grand Residences are what is now Kauai Lagoons, Kalanipu'u. The Ritz Carlton Residences are the barely started structures that you can see from every unit at the Kauai Lagoons timeshare property.


----------



## myhrse11 (Sep 23, 2014)

I don't know if this was posted on this forum but Marriott has sold the Marriott Kauai Lagoons.

http://www.bizjournals.com/pacific/...selling-unfinished-kauai-lagoons-project.html


----------



## Fasttr (Sep 23, 2014)

myhrse11 said:


> I don't know if this was posted on this forum but Marriott has sold the Marriott Kauai Lagoons.
> 
> http://www.bizjournals.com/pacific/...selling-unfinished-kauai-lagoons-project.html



That's a bit misleading as its apparently not the KL timeshares....see [_Posts moved; link to destination thread disabled._] thread on the subject.


.


----------



## taffy19 (Jan 11, 2015)

*Sale is complete of the Kauai Lagoons*

Marriott closes on $60M sale of Kauai Lagoons to Hawaii developer Ed Bushor.


----------



## Bill4728 (Jan 11, 2015)

The TS resort itself, I assume, was not part of the sale. Only all the land around the resort which is kind of an eye-sore with the partially completed building ( mostly just foundations)


----------



## dioxide45 (Jan 11, 2015)

Bill4728 said:


> The TS resort itself, I assume, was not part of the sale. Only all the land around the resort which is kind of an eye-sore with the partially completed building ( mostly just foundations)



Correct. The timeshare is owned by the HOA. So MVC can't really sell that. They could sell management rights to it though.


----------



## taffy19 (Jan 11, 2015)

Bill4728 said:


> The TS resort itself, I assume, was not part of the sale. Only all the land around the resort which is kind of an eye-sore with the partially completed building ( mostly just foundations)


See post #18 where it shows you what is built or was planned to be built on the property but the timeshare units were not included in the sale.

 All the grading was done already and the timeshare units wouldn't lose their lovely view of the ocean and mountain backdrop of the little bay which is important, IMO.  It is a beautiful spot in Kauai.


----------



## MALC9990 (Jan 12, 2015)

puckmanfl said:


> good evening
> 
> So instead of adding new Trust Properties......
> 
> ...



I think that it is just the spare undeveloped land that has been sold.


----------



## bazzap (Jan 12, 2015)

Yes thankfully MVC Kauai Lagoons is unaffected, but sadly it does mean there is now no possibility of the Ritz Carlton being developed to incorporate any MVC accessible inventory


----------

