Loading...
HomeMy WebLinkAboutCOM 0853.047 2012-2014 QL5 D - 1 */ Prudential Prudential Orchid Isle Properties �i 101 Hualalai Street,Hilo,HI 96720 Bus 808 969-7863 800 789-4753 November 8, 2012 Z Fax 808 935-7405 info©realestatehawaii.com, ,: • C I,ww.RealEstateHawaii.com Aloha Chairman and County Council persons. Charlene Pricket asked me to speak today regarding the potential loss of value to their property in Papaikou if the County of Hawaii utilizes eminent domain to force a public access through their property over the trial that they constructed to remove the old sugar mill. First, as many of you know, I am the President and Principal Broker for Prudential Orchid Isle Properties. I have been actively licensed in real estate for the last 31 years. Part of my real estate career was working with C. Brewer and Company from 1993 to 2002 when I exclusively handled all of their Hawaii Island Sales. I am-very familiar with the Waugh and Pricket property as I was the listing broker when they purchased it in 1995. I am not a licensed appraiser,and the information that I will provide you with should not be confused with an appraisal. To determine the effect of the easement, it is first necessary to determine a value for their property. Their property is 16.92 acres that includes a 1,295 SF farm dwelling. It is oceanfront and is rather unique on the Hilo-Hamakua Coast as it fronts a black sand beach. I found two sales that are fairly comparable to the subject property.The first is a 13.68 acre oceanfront property that is situated on the southern half of Kaa'wali'i Gulch. The property has a private trail that provides access to the rocky beach. There is a 3 bedroom, 2 bath home containing 2,433 SF. This property sold on July 15, 2011 for$1,550,000 and the listing claims the house had a great deal of deferred maintenance. While the home is larger,the land is 3.3 acres smaller. The deferred maintenance and smaller and area requires an adjustment of$200,000 bringing the Waugh-Pricket home to a value of$1,750,000. The second sale is much more recent happening in February of this year. It is a 2.83 acre oceanfront parcel in Hakalau.The home is much larger measuring 2,967 SF. While it is has no shoreline access, it does have a commanding view from the cliff frontage.This house sold for$1,950,000. The larger house will require an adjustment of $(335,000) or$200/SF,but the additional 14 acres will also require an adjustment of $700,000 or$50,000/acre.After adding and subtracting the adjustments,the Waugh-Pricket property is worth $2,315,000 using this very recent sale. Because values in Hawaii are slowing starting to recover, I would give more weight to this sale in determining the value. I must admit that it is difficult to find any sales where a public access easement has been established so close to the home like this situation. However,the loss of privacy, security and quiet enjoyment of the property will reduce the value of the Comm.No O t 3 • i Ref.To: Ref. Dote NOV 0 9 201 0 A independently owned and operated member of The Prudential Real Estate Affiliates,Inc. property approximately 40% in my opinion.Thus,the government should expect to pay somewhere between $700,000 and$926,000 for this easement. Thank you, Robert G.Williams President, Principal Broker