Buy and hold mindset pays off down the road

Honolulu Advertiser

By Lisa Scontras

Good economy or bad, there is never a shortage of information about common real estate investment mistakes and how to avoid them. One blunder that consistently tops the list is short-term thinking. Real estate is historically a slow, steady and conservative performer that increases in value over time, according to successful, longtime investors.

Contrary to the quick money, flip-it mentality, which is based purely on speculation, buying an investment property with a long-term mindset can be a great source of income down the road — even helping to supplement a derailed retirement plan.

With one American turning 50 every seven seconds, saving enough for those golden years is a real concern for the millions of families who have seen traditional pension plans and retirement accounts evaporate.

John Hayama, Realtor and partner at Prudential Locations LLC, says people of

all ages are considering real estate as a way to eventually boost their retirement income.

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Honolulu Advertiser
By Greg Wiles

It could be a glimmer, or maybe just wishful thinking. But there are some signs that Hawai’i’s economy may be reaching the bottom of a pernicious downturn that’s ravaged employment rolls and uprooted some companies.  No one is saying the economy has reached a recovery. But they note the steady worsening of the state’s economy may be ending, perhaps paving the way for a return to growth next year.

At Olsten Staffing Services in Honolulu, the phone is starting to ring a bit more often. Olsten and other temporary help firms had seen business decline over the past year as firms cut back on hiring and laid off people.  But lately there’s been word that companies aren’t laying off as many people and in some instances are hiring.

“There’s a few more orders coming in for people,” said Olsten President Signe Godfrey.

“I’m not going to say it’s great, but we’re starting to see a little more uptick, which we haven’t seen in a long time.”

There are other signs the long economic winter is beginning to thaw with automobile dealers reporting a rise in buyer traffic generated by the “cash for clunkers” program.

This, after a precipitous decline in sales over the past two years.

The number of airline seats on scheduled flights to Hawai’i on a rolling three-month basis has increased in the past two monthly reports from the Department of Business, Economic Development and Tourism. There had been 14 months of consecutive declines in the report.

HOPEFUL SIGNS

Domestic visitor arrivals have stabilized in recent months on a seasonally adjusted basis, and O’ahu home and condominium sales are rising, said Paul Brewbaker of TZ Economics.  At the same time, the number of jobs being lost in the downturn has been shrinking this year, he said. In December the state’s economy lost 6,400 jobs. By June that had shrunk to a loss of 2,550.

Brewbaker said his seasonally adjusted sales volume number for residential real estate shows the bottom may have been reached around the beginning of the year, as the data shows increases every month since then.

“There’s an increasingly broad pattern of stabilization,” Brewbaker said.  Where Hawai’i is positioned in the economic cycle may be best illustrated through the alphabet.

Brewbaker said a decline and sharp rebound would have a V-shape, while an L-shaped curve would denote a economy that’s declined and has been stuck at a low level of activity.

His view is the Hawai’i economy is now along the bottom of a U-shaped economic cycle where there is a decline, a period of stabilization and then renewed growth.  “If it’s U-shaped, then we’re going from one arm to another,” Brewbaker said. “It’s certainly not V-shaped.  “No one is saying it’s L-shaped. That’s what everyone was saying six months ago.”

Alphabet soup aside, there are other factors pointing to the downturn hitting bottom. Brewbaker said Hawai’i’s economic cycle has increasingly been synchronized with the overall U.S. economy after previously being thought to lag the Mainland.

On Friday the U.S. Labor Department issued a report that many people took as further proof that the recession is ending. It reported the fewest number of jobs were lost in a year’s time and that worker hours and pay had edged upward last month.

That led President Obama to pronounce the worst of the economy may be behind the country. The Standard & Poor’s 500 Index has risen 11.9 percent since the beginning of the year.

“I think there’s more positive news than we had been seeing in the last year,” said Pearl Imada Iboshi, state government’s chief economist.

“If you go to Waikiki, it seems really crowded, at least this month. Definitely flights have been really full coming in and out of Hawai’i.”

Iboshi, who heads the economic team at the state Department of Business, Economic Development and Tourism, forecast in May that Hawai’i’s gross domestic product will decline this year, but will grow next year. It has similar projections for upturns next year in visitor expenditures and personal income.

The state will issue an updated forecast later this month, though Iboshi said she does not know at this time if any of the estimates will be revised upward.

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Click the image below to view the slideshow of recent images from Trump International Hotel & Tower(r) Waikiki Beach Walk(r).

As demonstrated in this photograph of the elevator lobby on the 8th floor, the construction crews are making great headway on the interior finishes at Trump International Hotel & Tower(r) Waikiki Beach Walk(r).  The wall below is made of individual one-inch squares cut from the shell of a coconut.   

Click the image below to view the slidshow of interior photographs taken on August 4, 2009. 

TRUMP INTERNATIONAL HOTEL(TM) WAIKIKI BEACH WALK(R) GATHERS GENERATIONS FOR MEMORABLE OAHU COAST EXPERIENCE

HONOLULU – August 3, 2009 – From the Trump family to yours, the next generation of luxury hospitality on the Waikiki beachfront will welcome travelers of all generations when it opens in November.  From Tutu Wahine and Tutu Kane (grandma and grandpa) down to the smallest keiki, or child, Trump International Hotel(TM) Waikiki Beach Walk(r) will offer expansive accommodations and unrivaled services for the whole Ohana, making it the ideal choice for an intergenerational island getaway.

An array of room and suite types will cater to families traveling together, affording guests flexible accommodations from studios with kitchenettes that feature microwave, premium Wolf cook top and Sub Zero mini-refrigerator to suites of up to three bedrooms that include room for the family nanny and pampering areas to relax together. Full gourmet kitchens are equipped with dinnerware and small appliances, and can be stocked in advance so that the family’s favorite treats as well as Hawaiian offerings are waiting upon their arrival.  For those who would rather not cook a large meal after a long day of wave riding, beach going or site-seeing, the hotel’s in-house chef is available to prepare a delicious dinner for the entire family in the comfort and privacy of their own suite.

Located steps away from the beach, the hotel will offer a Beach Attaché to facilitate oceanfront activity ranging from splashing in the warm Pacific to arranging water sports for the more adventuresome in the group.

Guests of the Trump International Hotel Waikiki Beach Walk will enjoy all the services and amenities of Trump Hotel Collection’s brand-wide programs created for families – Trump Kids and Trump Baby Attaché – as well as the following:

• Hawaiian embrace program: The hotel’s own “auntie” will captivate children each week with story hour at sunset, as part of a program designed to introduce children to the local island culture.
• Authentic adventures: A selection of carefully crafted excursions – far removed from the typical tourist fare – will be customized to each family’s personal interests. 
• Lanai Memory Maker program:  From reunions to anniversaries, family milestones can be celebrated with a variety of multigenerational activities, capped off by a family photo at sunset.
• Children’s amenities:  Children’s menus and kiddie cocktails are just the beginning of the special attention young guests will enjoy. Rooms will be outfitted with pint-sized robes and slippers, as well as tub amenities, special surprises upon check-in, and more. Age-appropriate books and games will be stocked in room (along with necessities for babies and toddlers) as part of the Trump Kids and Baby Attaché programs, easing parents’ minds and allowing for lightened luggage.
• Location, location, location: Trump International Hotel Waikiki Beach Walk is ideally located on an island with access to a wealth of family attractions including Sea Life Park, Honolulu Zoo, Wet ‘n’ Wild Hawaii water park, Polynesian Culture Center, exceptional shopping, world-class snorkeling at Hanauma Bay, fishing excursions and more. And for aspiring surfers, Waikiki is the best place in Hawaii to learn the sport. 

Trump International Hotel Waikiki Beach Walk is offering special introductory rates for bookings from November 16 through December 21, 2009 including spacious studios with kitchenettes and queen-sized sofa beds from $225 per night, and one bedroom guest rooms with full gourmet kitchens and queen-sized sofa beds from $525 per night.  Reservations may be made by visiting www.trumpwaikikihotel.com and by calling the toll-free reservations number at 1(877) 683-7401.

Trump International Hotel(TM) Waikiki Beach Walk(r) 

July 28, 2009
From: Susie Hammer, WTS Director of Spa Operations

We are excited to announce that Lucia Amasio will be joining us at the Trump International Hotel & Tower (r) Waikiki Beach Walk (r) as our new Spa Director.  Lucia comes to us with extensive spa experience having worked at both the Grand Wailea Resort and Spa as well as most recently serving as the Executive Director of Spa ad Retail for the Ritz Carlton Kapalua.  We are very excited to have found suc an experienced spa director with more than 10 years of Hawaiin spa experience.  Her first day will be September 7.

The Associated Press
Posted July 21, 2009

The developer of Trump International Hotel & Tower Waikiki Beach Walk has filed a counter lawsuit against buyers seeking to cancel their sales contracts. California-based Irongate said in the suit filed Monday in Honolulu that it’s the target of a “sham lawsuit”.

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Pacific Business News
Tuesday, July 21, 2009

The developer of the Trump International Hotel & Tower(r) at Waikiki has countersued the buyers of 33 units who sued last week to cancel their sales contracts because use of Donald Trump’s name on the luxury condominium project is not guaranteed.

In a counter lawsuit filed in 1st Circuit Court in Honolulu on Monday, Los Angeles-based Irongate claimed the lawsuit filed by the buyers on July 13 was a “sham lawsuit brought without any objective merit or probable cause and is part of the defendants’ broader plan to attempt to harm and devalue the project.”

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NEWS RELEASE

IRONGATE AZREP BW LLC AND TRUMP CONFIRM COMMITMENT TO THE

TRUMP INTERNATIONAL HOTEL & TOWER® WAIKIKI BEACH WALK®

HONOLULU – Irongate AZREP BW LLC, the developer of the Trump International Hotel & Tower® Waikiki Beach Walk® (“Trump International Hotel Waikiki Beach Walk”) filed suit yesterday against a small group of buyers.  Although more detail is provided in the suit, in short, the suit explains that (i) the existence of the Trump license agreement was clearly and adequately disclosed to buyers in the purchase agreements and condominium documents and (ii) the recent lawsuit alleging the contrary is without merit. 

By filing suit against these individuals, Irongate AZREP BW LLC is sending a clear message that it will take all necessary action to protect the Trump International Hotel Waikiki Beach Walk for the benefit of all of its buyers and future guests, as well as the Honolulu community as a whole.  With Hawaii’s unemployment rate lingering at 7.4%, it is important to note that Trump International Hotel Waikiki Beach Walk has already benefited the community by generating hundreds of construction jobs and will continue to do so by providing future on-site employment at Trump International Hotel Waikiki Beach Walk after opening.

Less than three years ago, it was announced that Trump International Hotel Waikiki Beach Walk would be built within the golden quadrant of Waikiki Beach.  The record breaking sellout of the project in 2006 was celebrated with great fanfare and many watched the project closely through its development.  Now, with the opening of the 38 story tower just around the corner, the vast majority of buyers are moving towards closing.  Buyers who have secured a residence will soon be able to enjoy all the benefits of owning in this one of a kind building, located in Waikiki, an international destination that has benefited from $3 billion in private sector investment and $100 million in public sector investment. 

Jason Grosfeld of Irongate AZREP BW LLC, explained: “Recent events have left us no choice but to take a strong stance to reaffirm to the world that we are committed to the success of Trump International Hotel Waikiki Beach Walk.  We owe it to the team that has put so many years into making Trump International Hotel Waikiki Beach Walk a reality - Outrigger, the City and County of Honolulu, the design teams, the hundreds of Hawaii-based workers, and the purchasers who remain proud to call this one of a kind property home in Waikiki.  We look forward to welcoming the world to Trump International Hotel Waikiki Beach Walk and to celebrating its success.”

“Trump is very excited about seeing this project come to fruition,” said Donald J. Trump, Jr. “The construction and hotel teams have been on the ground frequently in the last several weeks, preparing for the opening, and the hotel has already begun accepting reservations. I was delighted to meet with a group of enthusiastic future unit owners in Tokyo last month and I look forward to meeting even more during my visit to Hawaii in early August. We are excited about adding this beautiful property to the Trump Hotel Collection portfolio.”

Trump International Hotel & Tower Waikiki Beach Walk is located at 223 Saratoga Road, Honolulu, HI 96815; and information can be obtained at www.trumphotelwaikiki.com.  It joins a growing family of luxury hotels under the Trump Hotel Collection brand.  Launched in October 2007, Trump Hotel Collection is the next generation of luxury hospitality – one that is raising the bar in the top-tier travel experience with a level of customized service unrivaled in the market today.  Presided over by internationally renowned developer Donald J. Trump and his three grown children – Donald Jr., Ivanka and Eric – the prestigious portfolio currently includes the highly acclaimed Trump International Hotel & Tower® New York, Trump International Hotel & Tower® Chicago and Trump International Hotel™ Las Vegas.  Also joining Trump Hotel Collection in the second half of 2009 is Trump SoHo New York™.  Additional hotel projects are under development around the globe, including Toronto, Panama, Dubai, Cap Cana, Scotland and New Orleans.  Trump Hotel Collection is headquartered at Trump Tower®, 725 Fifth Avenue, New York, NY 10002.

The people who sued developer Irongate are the same ones who now face a suit

By Nina Wu

Attorneys for Irongate, developers of the Trump International Hotel Waikiki Beach Walk, filed a complaint yesterday against the buyers of 11 units in state Circuit Court demanding a jury trial.
The suit alleges that two defendants — in particular, brothers Hamid and Majid Mani — committed breach of contract and negligently misrepresented their ability to buy the four most expensive units at the Trump tower for about $13 million.

Also, the suit said that Hamid Mani said last month that the brothers could not qualify for traditional financing and did not want to close on the four units.

In other words, it was buyers’ remorse.

The two brothers from San Diego were provided with project documents informing them that hotel mogul Donald Trump granted the developer a license to use his name, says the suit.

The sales contract dating back to November 2006, according to the suit, says in clear, unambiguous terms, “In the event that the Trump license shall be terminated under the terms thereof, all unit owners will be required to cease using the Trump marks and any other trademarks, trade names or service marks bearing the Trump name.”

But it was not until 2 1/2 years after the sales contract that Mani asked for a copy of the Trump license.

Besides alleging that the brothers tried to extort concessions from the developer, the suit says they also convinced other parties to breach their contracts.

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