Anderson's Kauai Beach Condos at Auction

A portion of the Hilton Kauai Beach Resort owned byIlikai in Waikiki, where Anderson purchased
developer Brian Anderson will be sold atpublic auction343 units in July 2006. iStar claims Anderson and two
next month.of his companies defaulted on nearly
The 145 condominium hotel units and 15 commercial$75.6 million for the residential and retail units they own
condominium units will be sold in bulk atthe May 6at the 30-story building.
auction at the entrance to 5th Circuit Court in Lihue,The 203 residential units Anderson still owns, plus 16
according to an advertisementplaced by commissionercommercial condo units, will be sold intwo separate
George Van Buren.public auctions next week. Those auctions are
The New York lender, iStar Financial, filed forscheduled for April 15 at the 1st
foreclosure on the property on July 22, 2008,claimingCircuit Court building in Honolulu.
Anderson and his KB Resort LLC were in default ofAnderson’s KB Resort LLC, had purchased the
nearly $29.5 million in unpaidprincipal, interest, lateKauai Beach Resort, which is located on 12 acresjust
charges and fees.north of Lihue, in December 2004 for $62 million. In the
The amount was what remained from an original loanfall of 2005, he announced plans toturn the 350-room
of $85.75 million — $75.75 millionborrowed fromproperty into fee-simple condominiums and began a
subprime lender Fremont Investment & Loan on$15 million renovation.
Dec. 7, 2005, and $10 millionadvanced in July 2006,The hotel, formerly under the Radisson flag, became a
according to the complaint. In June 2007, iStar tookHilton in October 2006.
over the loans afterit acquired Fremont’sKB Resort sold off 205 units. Anderson had said last
commercial real estate lending business.year that the 145 units now up for auctionhad been in
The lender also foreclosed on the mortgage on theescrow to an unnamed single buyer.