100% of Trump Tower Waikiki condo owners committed? Not so fast!

Pacific business news has a very bullish article on the buyers of  condos on the Trump Tower hotel condos. You can read the full article here.

“The building sold all 464 condominium units, which were priced from $500,000 to more than $5 million, in one day in November 2006. None of the buyers have canceled, according to Jeff Skinner of S&P Destination Properties, principal broker for the project.”

The Trump Tower Waikiki on July 9, 2009

While no one other than the contract holder and Jeff Skinner knows if anyone has canceled. However, there seems to be many condo contract holders who want out. But of course getting out of the contract means forfeiting their 20 percent cash deposit. Our sources tell us that many are hoping to sell to break even or, hopefully, for a profit.  There is, at least, one unit on the market that, if sold at the list price, will mean a loss for the contract holder.

In May, Associate Press came out with an article mentioning the growing number of units being offered for sale through the local Multiple Listing Service (MLS).  The article quoted John Herkenrath, an agent with A&P destinations as saying, “They do not have the right to list or sell anything,” he said. “Once they close, it’s theirs to do as they please.” But, the owners were advertising their willingness to sell upon closing on the units, when the building was completed.  They were not violating the contract as insinuated in the article. It did however, send a little shock wave through the MLS as most of the listings were removed, but only temporarily as the owners realized it was a only a veiled threat and had no basis.

The truth is that many owners are very concerned about closing on the units in this rough economy and having to pay the maintenance fee every month.  When the units went into contract the economy was much different.  As the price of electricity, water, and sewer have risen dramatically, condo fees have risen along with them making many condo owners in Hawaii nervous at best.  And as tourism has deteriorated further and further in Hawaii, there is no guarantee that income from the hotel operations are going to be any benefit to them.

This is why there are some units already being advertised for rent. Currently, there are a whopping 22 units on the market, listed in Honolulu’s MLS and calling around some top brokers tells us that more would be willing to sell.

Trump Tower,23 Saratoga Road
Honolulu, HI 96815