Market Report

43 PAPALUA PLACE, NAPILI, MAUI OFFERED AT $8,500,000

WEST MAUI RESORT MARKET REPORT r C7K? ?IB7D: B?L?D= THROUGH QUARTER 2 | 2014

9EBB;9J?ED Prepared by Courtney M. Brown, R(S) Vice President

<7BB (&')

WEST MAUI RESORT MARKET UPDATE: SALES TRENDS THROUGH QUARTER 2 | 2014 TABLE OF CONTENTS

225 PLANTATION CLUB DRIVE, KAPALUA PENDING

KAPALUA RESORT …..……………………………………………………………………………………………..

CONDOMINIUMS ………………………………………………………………………………………………….

HOMES AND LAND …………………………………………………………………………………………….....

KAANAPALI …………..……………………………………………………………………………………………..

NAPILI ………………..……………………………………………………………………………………………....

OCEANFRONT HOMES ……………………………………………………………………………………………

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WEST MAUI: RESORT MARKET REPORT

3-4 5-9 10-14 15-16 17-18 19-26

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

THE KAPALUA RESORT

MARKET OVERVIEW Sales for All Property Types: Homes, Condominiums and Land

2013

• •

•

In 2013 the Kapalua Resort Market showed signs of strengthening over that of 2012.

On average, properties spent fewer days on the market: -41% While there were fewer properties sold (-16%), there were notable gains across the resort: Low Sales Price: +45%, Average Sales Price: +57%, Median Sales Price: + 62%, Sales Volume ($): +32% It appears that after prices peaked in 2006/7, the bottom of the Kapalua market was in 2012.

2014

•

•

The challenge in comparing the market in 2014 with that of 2013 is that there are so few data points (just 26 sales in the first half of 2013 and 21 in first half of 2014).

Comparing the data through the Second Quarter of 2014 vs. Second Quarter of 2013, there were -19% fewer sales, and sales volume was down -14%, with a total volume of $39,592,499. The most dramatic downturn was high sales price, which was down -48%.

However, it should be noted that is due to just one sale recording at $9.7M in the first half of 2013. Gains were actually seen across the resort when comparing the first half of the year: Low Sales Price: +29%, Average Sales Price: +12% Median Sales Price: +21%, Average SP/Sq. Ft.: +31% Comparing the first half of 2014 vs. All of 2013 yields a fairly consistent picture: Low Sales Price: +29%, Average Sale Price: +13% Median Sales Price: +21%, Average SP/Sq. Ft.: +27%

While the average sales price and median sales prices are up in the first half of 2014, I anticipate the statistics will change dramatically in the third quarter for both resort-wide data and condominium data, with the release and recording of the new Montage Residences at Kapalua Bay, which have closed in prices between $4.3-8.25M in July and August, 2014.

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

THE KAPALUA RESORT:

Comparing the market through the first half of 2013 with 2014 OUR MARKET NOW: at the time of this market update there were approximately 99 listings in the resort, up slightly from approximately 90 in the first quarter. Calculating the Absorption Rate, this equates to approximately 25 months of inventory available in the resort, higher than 2013 at year end (21 months). While this is considered an overall BUYER’S MARKET, it is important to note that not all properties are viewed equally: sought after views and floorplans tend to move quickly in the marketplace, buyers have paid a premium for outstanding locations within the resort, and condominiums and homes tend to be in greater demand than vacant lots, as they allow for immediate use. Each neighborhood is different, with varying inventories and availability.

KAPALUA RESORT

$

5M Highest Sale

JAN-JUN | 2013 JAN-JUN | 2014

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

92

21

%

Sales/List Price

Transactions

$620,000 Low Sales Price Change: 29%

$1,331,250 Median Sales Price Change: 21%

$5,000,000 High Sales Price Change: -48%

$39,592,499 Sales Volume Change: -14%

# of Transactions

Average Sales Price

Average Days on Market

Average $/SQ. FT.

26 21

$1,772,288 $1,979,624

340 398

$640 $841

-19%

12%

17%

31%

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

KAPALUA CONDOMINIUMS

JAN-JUN | 2013 JAN-JUN | 2014

$620,000 Low Sales Price Change: 29%

$1,089,000 Median Sales Price Change: 40%

$5,000,000 High Sales Price Change: 19%

$21,420,499 Sales Volume Change: 31%

# of Transactions

Average Sales Price

Average Days on Market

Average $/SQ. FT.

15 14

$1,094,100 $1,530,035

294 368

$739 $949

-7%

40%

25%

28%

KEY OBSERVATIONS In 2013, there were fewer condominium sales when compared with 2012, but overall prices were higher: Median Sales Price (+39%) and Average Sales Price (+29%).

Unlike the first quarter of 2013, which saw very little change in the average sales price, when examining sales through the second quarter of 2014, we saw Average and Median Sales Prices up +40% and the Low Sales Price was up +26%. Condominium Sales volume was also up 31%, compared to being down resort wide -14%. Accompanying these increases was a slight decrease in the number of sales. It is also noteworthy that properties, on average, were staying on the market longer before selling.

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

KAPALUA CONDOMINIUMS

Condominiums

THRU QTR

# Sales

Low SP

AVG SP

Med SP

High SP

Volume ($)

Avg DOM

SP/LP

SP/Sq. Ft.

Golf Villas

Q2 13

9

$479,000

$649,444

$675,000

$800,000

$5,845,000

325

98%

$512

Q2 14

4

$645,000

$711,250

$705,000

$790,000

$2,845,000

254

97%

$718

Q2 13

1

$1,300,000

$1,300,000

$1,300,000

$1,300,000

$1,300,000

84

96%

$740

Q2 14

3

$974,000

$1,283,833

$1,412,500

$1,465,000

$3,851,500

295

94%

$726

Q2 13

3

$795,000

$1,073,333

$1,175,000

$1,250,000

$3,220,000

364

90%

$890

Q2 14

4

$620,000

$1,199,750

$1,227,000

$1,725,000

$4,799,000

539

92%

$919

Q2 13

1

$1,850,000

$1,850,000

$1,850,000

$1,850,000

$1,850,000

315

93%

$1,253

Q2 14

1

$925,000

$925,000

$925,000

$925,000

$925,000

274

93%

$699

Q2 13

0

NA

NA

NA

NA

NA

NA

NA

NA

Q2 14

1

$3,999,999

$3,999,999

$3,999,999

$3,999,999

$3,999,999

658

91%

$1,667

Q2 13

1

$4,196,500

$4,196,500

$4,196,500

$4,196,500

$4,196,500

0

100%

$1,815

Q2 14

1

$5,000,000

$5,000,000

$5,000,000

$5,000,000

$5,000,000

171

95%

$2,193

Q2 13

0

NA

NA

NA

NA

NA

NA

NA

NA

Q2 14

0

NA

NA

NA

NA

NA

NA

NA

NA

Ridge Villas Bay Villas Residential Suites The Ironwoods Coconut Grove Montage Residences

With such small samples, meaningful statistics can be hard to gather. They are subject to the circumstances at each individual property (renovations, assessments, etc.). Sales prices can vary dramatically based on view, location within the property, age and condition. The following are notes on my personal impressions as well as commentary about some of the properties:

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WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

THE GO LF VILLAS are the entry point for the Kapalua Resort. In 2011, prices at the Golf Villas were affected as the property began a much-needed, comprehensive three-year renovation. The start of construction and a special assessment were accompanied by more listings at the Golf Villas at lower prices.

• At the end of 2013, the renovation project was nearly completed and the lower priced inventory at the Golf Villas had evaporated. The result was a dramatic decrease in the number of sales: (-56%), accompanied by increases in Low (+45%), Average (+30%), and Median Sales Prices (+35%).

• Comparing the first half of 2014 with 2013, the Sales Prices increased slightly with both the Average up (+10%) and the Median up (+4%).

The notable changes were in the Low Sales Price, which was (+35%) and the SP/Sq. Ft., which was up (+40%) and in the sales volume ($) down (-51%) and number of sales down (-56%) mirroring 2013.

The Ridge Villas • In 2013 sales remained relatively stable over the prior year. However, as prices rose at the Golf Villas, we saw an even more substantial increase at the Ridge across the board: Low (+38%), Average (+39%), and Median (+35%) Sales Prices. Furthermore, there was an increase in Sales Volume ($) (+29%) as the two-bedroom market gained strength.

• Comparing the first half of 2014 with 2013, we saw an increase in the number of sales and sales volume with 3 sales in 2014 vs. just 1 in 2013. As such, the data is fairly limited to provide a comparison, but the average sales price remained fairly stable (-1%) and the median sales price increased slightly (+9%) The Bay Villas • In 2013, the Bay Villas also remained relatively stable in terms of number of sales. The high sale saw the highest swing, down -35%.

However, this is attributed to the sale of an upgraded, oceanfront two-bedroom villa in 2012 setting a relatively high bar.

• Comparing the first half of 2014 with 2013, the Bay Villas saw an in Average Sales Price (+12%) and a relatively flat Median Sales Price (+4%). There was a low sale of $620,000 (-47% over 2013) that affected the average and median. Buyers in 2014 took advantage of some good values at the Bay Villas in the first quarter with this low sale and the sale of a two-bedroom oceanfront REO. The Residential Suites at the Ritz-Carlton Kapalua • The Residential Suites saw just one sale in 2012 and one in 2013. With 107 total condominium units, 34 were sold to private individuals.

The hotel was purchased in February, 2014 by a Joint Venture between Colony Capital and Woodridge Capital Partners, who now owns the remaining 73 condominiums. At this time, the direction of the property and what will happen with the remaining unsold inventory is an unknown, though it is thought that the new owners will most likely begin sales of the remaining inventory in the near future.

• When looking at 2012, 2013, and 2014 sales, it’s important to note the differences between the two properties sold. The vast majority of the units do not have full kitchens. Essentially, this is impactful, as the units don’t qualify for conventional lending in this market and the majority of sales have been cash. Only the 11-oceanfront suites have full kitchens. The property to sell in 2013 was an oceanfront suite THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

with a full kitchen, and the sales in 2012 and 2014 were suites with a kitchenette only. The Sale in 2012 was bank owned (REO) and the sale in 2014 was a short sale.

The Ironw oods • In 2013, there was only one sale, a two bedroom + den villa at $2,150,000, which did not occur in the first quarter. In the first quarter of 2014, there was a sale of an oceanfront three-bedroom villa at $3,999,999. This is the highest sale since 2006.

It’s noteworthy that the 2013 sale was in building 8, and while upgraded, many consider buildings 6 and 8 to be in a different category than the other buildings, due to a greater distance to the water. This contributes to a lower overall sales price.

Coconut Grove • In 2013, the high sales in the resort condominium market were at Coconut Grove, which is typical of our market.

• By the second quarter of 2014, there was one sale—the same as the second quarter 2013. However, what is noteworthy is a dramatic increase in the sales price (+19%). In my personal experience, some prospective buyers considering these properties in 2013 were waiting to see where the new owner positioned the re-sales of the remaining developer inventory at the Montage Residences Kapalua Bay, which contributed to lower sales prices at Coconut Grove. It is noteworthy that AOAO Coconut Grove has changed their CC&R’s, and the property no longer allows for any short-term rentals.

The M ontage Residences at Kapalua Bay There were no sales in 2013 or through the second quarter of 2014 of privately owned units or developer held inventory. In the second quarter of 2014, there was one resale pending.

Formerly the Ritz-Carlton Club and Residences, the property was foreclosed on in early 2013. Of the 84 whole ownership units originally offered for sale, 15 sold to Exclusive Resorts and 13 to private individuals, leaving 56 unsold Residences. Now under new ownership, Montage Hotels and Resorts is now managing the spa, known as Spa Montage, and has opened their restaurants and bars to the public.

Cane and Canoe is open for breakfast and dinner, and the Sunset Patio is open for lunch.

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WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

MONTAGE RESIDENCES KAPALUA BAY: SALES HAVE BEGUN A new sales program has been launched for the remaining unsold Residences. Pricing begins at $3,400,000. Sales were recorded in July and August of 2014, at prices ranging from $4.3-8.25M for three and four bedroom Residences, so they are not a part of this report. For more information on pricing and the available inventory, please contact me at cb@LuxuryRealEstateMaui.com or visit

www.TheResidencesOnMaui.com

MONTAGE RESIDENCES KAPALUA BAY RESIDENCES STARTING AT $3.4 MILLION

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COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

HOMES AND LAND HOMES

JAN-JUN | 2013 JAN-JUN | 2014

LAND

JAN-JUN | 2013 JAN-JUN | 2014

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$1,700,000 Low Sales Price Change: 26%

$3,250,000 Median Sales Price Change: 9%

$4,700,000 High Sales Price Change: -52%

$17,097,000 Sales Volume Change: -27%

# of Transactions

Average Sales Price

Average Days on Market

Average $/SQ. FT.

6 5

$3,882,500 $3,419,400

298 496

$899 $706

-17%

-12%

66%

-21%

$1,075,000 Low Sales Price Change: -61%

$1,075,000 Median Sales Price Change: -2%

$1,075,000 High Sales Price Change: -61%

$1,075,000 Sales Volume Change: -83%

# of Transactions

Average Sales Price

Average Days on Market

Average $/SQ. FT.

5 1

$1,274,600 $1,075,000

526 333

$32 $12

-80%

-16%

-37%

-63%

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

KEY OBSERVATIONS # Sales

Homes

QTR

PH and PHE

Q2 13

PE and HR Kapalua Place

Low SP

AVG SP

Med SP

High SP

Volume ($)

Avg DOM

SP/LP

SP/Sq. Ft.

3

$1,795,000

$2,798,333

$2,100,000

$4,500,000

$8,395,000

353

90%

$631

Q2 14

4

$3,097,000

$3,849,250

$3,800,000

$4,700,000

$15,397,000

505

92%

$803

Q2 13

2

$1,350,000

$2,600,000

$2,600,000

$3,850,000

$5,200,000

346

NA

$540

Q2 14

1

$1,700,000

$1,700,000

$1,700,000

$1,700,000

$1,700,000

458

74%

$319

Q2 13

0

NA

NA

NA

NA

NA

NA

NA

NA

Q2 14

0 # Sales

NA

NA

NA

NA

NA

NA

NA

NA

Low SP

AVG SP

Med SP

High SP

Volume ($)

Avg DOM

SP/LP

SP/Sq. Ft.

Land

QTR

PH and PHE

Q2 13

1

$1,098,000

$1,098,000

$1,098,000

$1,098,000

$1,098,000

165

92%

$111

Q2 14

0

NA

NA

NA

NA

NA

NA

NA

NA

Q2 13

4

$650,000

$1,318,750

$937,500

$2,750,000

$5,275,000

616

81%

$12

Q2 14

1

$1,075,000

$1,075,000

$1,075,000

$1,075,000

$1,075,000

333

80%

$12

PE and HR

*KEY: PINEAPPLE HILL (PH), PINEAPPLE HILL ESTATES (PHE), PLANTATION ESTATES (PE), HONOLUA RIDGE (HR)

HOME SALES: • In 2013, home sales increased dramatically in the resort, doubling over 2012. o The biggest increase was in Pineapple Hill, where the Number of Sales increased 500%. o The statistics include a home on an oceanfront point located between Honolua Bay and Slaughterhouse Beach, which sold at $9,700,000. Kapalua is fairly unique when compared with Wailea/Makena, as there are just 8 oceanfront Residential Parcels: 5 oceanfront home sites within the gated community of Kapalua Place, and 3 conservation-zoned, oceanfront peninsulas. o The statistics also include the sale of 8 Kapalua Place. Some of the highest priced real estate on the island is at Kapalua Place, an oceanfront community perched alongside the white sand beach at Oneloa Bay. With only eight home sites, this is one of the island’s most sought after communities and the only beachfront residential neighborhood in the Kapalua Resort. There are currently two oceanfront listings at $20.88 million and another at $26 million. 8 Kapalua Place is an ocean-view property that THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

•

sold at a Luxury Auction (not a distress sale or foreclosure) for $6,050,000. Prior to this, the last sale in this development was an oceanfront home at $13,900,000 in 2007. As such there is no data comparing 2012 to 2013 at Kapalua Place. o While the number of homes sold soared, the average amount of time (Days on Market) a home spent on the market increased +41%. o It is noteworthy that the market low of $1,350,000, was the short sale of an unfinished home in the Honolua Ridge neighborhood. o Low sale aside, there were increases in every other segment: Sales Volume (+127%), Average Sales Price ($)/Sq. Ft. (+24%), as well as in the Median (9%), Average (+14%) and High Sales Price (+62%), Through the second quarter of 2014, there have been just five home sales. One a bank owned, unfinished property, in Honolua Ridge, closed at $1,700,000. This is the second lowest sale in Honolua Ridge. At the other end of the spectrum a home on a double lot in Pineapple Hill, closed at $4,700,000, which is the highest sale in Pineapple Hill since 2007. The other three sales were homes in Pineapple Hill, all on a single lot.

LAND SALES: • In 2013, the number of Land Sales was relatively stable when compared with 2012. The majority of the sales were in the Honolua Ridge and Plantation Estates developments. o The speculative market at Honolua Ridge coupled with large acreage, has led to low Average Sales Prices/sq. ft. ($10) in the Honolua Ridge development. However, in Pineapple Hill, with just a handful of lots remaining, Average Sales have been considerably higher ($111) as purchasers find value in building a new home vs. renovating an older home. o The data includes the sale of 808 Oneloa Place at $2,700,000. This was originally part of Plantation Estates Phase II (known as Pod B comprised of 26 home sites). When purchased, it was sold as one lot of approximately 80 acres, with the condition that it could only be further subdivided into 8 lots. This parcel was raw land, with no infrastructure. o Average Sales prices (+52%) and Sales Volume ($) (+83%) were buoyed by the sale of 808 Oneloa Place at $2,700,000 and 224 Plantation Club Drive, a little over two acres situated along the 18th fairway of the Plantation Course, at $2,750,000.

• Through the Second Quarter of 2014, there was just one lot transaction in Plantation Estates at $1,075,000 for a two-acre parcel off the course.

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WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

UPCOMING: Mahana Estates is a new development situated on approximately 124 acres just south of the Plantation Estates. A 51 lot residential subdivision, this is the first phase of Kapalua Mauka. Preliminary plans are for lots ranging from .64 to 4.3 acres.

The infrastructure is currently being put in place. If you would like more information as it is made available and to be notified when a sales program is announced, please contact me.

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

KAPALUA HISTORICAL OVERVIEW

RESORT WIDE SALES (CONDOMINIUMS, HOMES, AND LAND) YEAR

NO. SALES

LOW SP

AVG SP

MED SP

HIGH SP

VOLUME ($)

AVG DOM

SP/LP (%)

SP/Sq. Ft.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

112 96 81 79 131 86 47 59 27 27 42 43 63 53

$295,000 $350,000 $369,000 $400,000 $500,000 $650,000 $740,000 $660,000 $625,000 $425,000 $425,000 $425,000 $330,000 $479,000

$943,502 $1,241,072 $841,512 $1,374,142 $1,360,915 $1,848,647 $1,970,234 $2,526,388 $2,081,055 $2,130,610 $2,065,071 $2,013,113 $1,113,104 $1,744,620

$525,000 $847,500 $841,512 $755,000 $885,000 $1,425,000 $1,479,000 $1,600,000 $1,300,000 $1,505,000 $1,487,500 $1,100,000 $676,000 $1,098,000

$14,000,000 $5,200,000 $3,450,000 $8,227,000 $4,470,000 $9,470,000 $6,000,000 $13,940,000 $6,100,000 $10,000,000 $7,125,000 $14,000,000 $5,998,888 $9,700,000

$105,672,250 $119,143,000 $68,162,500 $108,557,250 $178,279,875 $158,983,667 $92,600,999 $149,056,949 $56,188,500 $57,526,490 $85,733,000 $86,563,862 $70,125,531 $92,464,906

206 408 225 267 188 179 243 262 198 421 346 473 379 222

93% 98% 93% 91% 94% 94% 91% 89% 92% 93% 903% 85% 89% 87%

$335 $487 $365 $567 $533 $638 $781 $803 $919 $769 $771 $703 $550 $660

2014 Q2

21

$620,000

$1,979,624

$1,331,250

$5,000,000

$39,592,499

398

92%

$841

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WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

KA’ANAPALI

Comparing the market through the first half of 2013 with 2014 THE MARKET NOW: at the time of this market update there were approximately 191 listings in the resort, with approximately 238 sales in the last 12 months, yielding an Absorption Rate that equates to approximately 10 months of inventory available in Kaanapali. Note: many properties in Kaanapali are leasehold, which means the property sells without ownership of the land, so the price reflects that, thereby affecting low sales prices and any average or median figures.

KAANAPALI

$

5.2 M Highest Sale

JAN-JUN | 2013 JAN-JUN | 2014

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

96

140

%

Sales/List Price

Transactions

$210,000 Low Sales Price Change: -2%

$797,500 Median Sales Price Change: 12%

$5,200,000 High Sales Price Change: 17%

$159,586,821 Sales Volume Change: 44%

# of Transactions

Average Sales Price

Average Days on Market

Average $/SQ. FT.

121 140

$816,773 $1,139,905

483 420

$723 $773

16%

40%

-13%

7%

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

KAANAPALI: HISTORICAL OVERVIEW YEAR

NO. SALES

LOW SP

AVG SP

MED SP

HIGH SP

VOLUME ($)

AVG DOM

SP/LP (%)

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

190 232 226 313 241 188 141 111 71 228 288 189 234 220

$105,000 $31,000 $129,000 $137,000 $157,000 $192,000 $315,000 $240,000 $166,000 $320,000 $212,800 $150,000 $125,000 $215,000

$449,352 $548,165 $605,089 $592,753 $736,726 $1,051,616 $1,302,419 $1,331,651 $1,187,985 $1,253,955 $1,160,258 $832,542 $683,179 $980,754

2014 Q2

140

$210,000

$1,139,905

SP/Sq. Ft.

$315,000 $541,000 $411,250 $621,780 $625,000 $895,000 $1,025,000 $1,025,000 $930,000 $900,000 $799,950 $662,000 $499,950 $775,000

$3,500,000 $3,750,000 $9,750,000 $3,150,000 $3,200,000 $3,940,000 $5,000,000 $4,725,000 $4,425,000 $4,500,000 $5,391,250 $3,700,000 $3,999,999 $4,450,000

$85,377,060 $127,147,411 $136,750,155 $185,531,830 $177,551,148 $197,703,854 $183,641,100 $147,813,330 $84,347,000 $285,901,884 $334,154,438 $157,350,450 $159,864,015 $215,765,912

221 164 217 210 176 156 139 204 225 813 809 438 450 483

95% 96% 94% 95% 95% 95% 96% 92% 92% 97% 97% 94% 94% 94%

$325 $347 $345 $381 $524 $688 $714 $811 $840 $1,011 $931 $584 $603 $736

$797,500

$5,200,000

$159,586,821

420

96%

$773

Notes: All years contain some Leasehold sales. In all years except 2004, 2007, 2009, and 2010, the low sale price was a Leasehold property. In 2009, there is a dramatic increase in sales volume with the release of the first phase of Honua Kai (Hoku Lani) and the subsequent closing of developer sales. This is followed by the release of the second phase of Honua Kai (Konea), which began closing in 2010. Honua Kai is nearing completion of the developer sales of the 628 units in the development.

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

NAPILI BAY CONDOMINIUMS

Comparing the market through the first half of 2013 with 2014 THE MARKET NOW: at the time of this market update there were approximately 13 listings in properties on Napili Bay, with approximately 7 sales in the last 12 months, yielding an Absorption Rate that equates to approximately 1.9 years of inventory available in Napili. This is interesting for the Napili Bay area, as there are typically very few properties on the market. However, Napili Surf/Napili Puamala will soon undergo a major renovation and Napili Sunset has been undergoing extensive renovations.

When these types of major renovations occur and there are assessments and/or additional expenses , we often see an accompanying increase in inventory.

$

92

3

1.2 M

Sales/List Price

Transactions

Highest Sale $315,000 Low Sales Price Change: -10%

$630,000 Median Sales Price Change: 58%

$1,135,000 High Sales Price Change: 6%

$2,830,000 Sales Volume Change: -24%

# of Transactions

Average Sales Price

Average Days on Market

Average $/SQ. FT.

5 3

$566,000 $715,000

83 515

$893 $1,286

-40%

26%

520%

44%

JAN-JUN | 2013 JAN-JUN | 2014

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

%

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

NAPILI BAY CONDOMINIUMS: HISTORICAL OVERVIEW YEAR

NO. SALES

LOW SP

AVG SP

MED SP

HIGH SP

VOLUME ($)

AVG DOM

SP/LP (%)

SP/Sq. Ft.

2000* 2001 2002 2003* 2004* 2005 2006 2007 2008* 2009 2010 2011* 2012 2013

17 9 9 10 5 4 7 11 9 4 5 7 5 10

$40,000 * $170,000 $185,000 $150,000 $250,000 $450,000 $447,500 $350,000 $125,000* $265,000 $315,000 $18,000 $265,000 $333,000

$170,000 $230,000 $255,000 $246,000 $325,000 $469,250 $560,000 $510,000 $538,000 $342,500 $450,000 $400,000 $375,000 $412,500

$229,235 $275,994 $288,500 $269,400 $340,020 $515,625 $647,285 $601,318 $647,500 $366,500 $515,000 $377,571 $517,600 $615,300

$420,000 $450,000 $475,000 $416,000 $450,000 $678,000 $1,138,500 $1,275,000 $1,200,000 $516,000 $950,000 $650,000 $1,200,000 $1,190,000

$2,897,000 $2,483,500 $2,596,500 $2,694,000 $1,700,100 $2,066,500 $4,531,000 $6,614,500 $4,532,500 $1,466,000 $2,575,000 $2,643,000 $2,588,000 $6,153,000

234 124 85 78 110 90 166 140 91 166 121 198 347 104

99% 96% 95% 97% 98% 99% 94% 95% 91% 99% 83% 94% 97% 87%

$416 $491 $489 $572 $762 $1,083 $1,271 $1,103 $1,096 $784 $1,019 $617 $921 $993

2014 Q2

3

$315,000

$715,000

$630,000

$1,200,000

$2,145,000

515

92%

$1,286

*Data includes leasehold sales in the years marked with an asterisk.

Notes: Properties included in the research are Hale Napili, Napili Bay, Napili Kai (Puna Point I & II and Napili Lani), Napili Shores, Napili Sunset, and Napili Surf/Napili Puamala. There are two additional condominium properties in the area: Napili Point and Honokeana Cove. They were not included in this data.

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

OCEANFRONT HOMES WEST MAUI, SOUTH MAUI AND NORTH SHORE Comparing the market through the first half of 2013 with 2014

$

9.3 M Highest Sale

12 Transactions

$65.8 M Sales Volume

Historically, the South Maui market has had the largest number of sales annually, with Wailea/Makena commanding the highest values ($27 million in 2011). Kihei is included in the South Maui figures and represents the lower end of the market spectrum, with the exception of the properties on Keawekapu Beach. Kapalua and Kaanapali have very limited oceanfront residential inventory when compared with Wailea and Makena. In Kapalua, there are just five oceanfront lots in Kapalua Place and three oceanfront peninsulas that are an incorporated part of the resort. There are a handful of oceanfront parcels beyond the resort. In Kaanapali, there are just six beachfront residential lots in the Kai Ala Place subdivision. Unlike the resort markets of Kaanapali, Kapalua and Wailea/Makena, the markets in Kihei, Lahaina, and the North Shore offer a variety of inventory available from old to new construction.

North Shore: • When comparing the first half of 2014 with that of 2013, the North Shore was the most active market when compared with the prior year.

• Sales volume ($) was up +385% and the Number of Sales was up +400% over the first half of 2013. The second highest sale to record in the North Shore MLS history occurred in the first half of 2014. This sale at $8,250,000 was up +50% over the highest sale in the first half of 2013.

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

However, the Average Sales Price was down -3% and the Median Sales Price was down -18%, suggesting more activity at the lower end of the market spectrum.

West Maui: • The Average Sales Price, Median Sales Price, and Sales Volume were up 15%. The high sales price was down -38%. The Low was up 1226%.

• There were only two sales in the first half of each year, so data points are limited. The first half of 2013 was comprised of a sale of an oceanfront point in Kapalua at $9,600,000, and the sale of a distressed property in Lahaina with limited oceanfrontage at $430,000. Conversely, the 2014 market showed more consistency with a sale at $5,700,00 and one at $6,000,000 South Maui: • In South Maui, the number of sales was down -29% and Sales Volume ($) was down -23% over 2013. The Average Sales Price saw a very small increase of +7%, while the Median saw a small downturn at -8%. Interestingly, the High Sales Price was relatively consistent with just a +1% gain.

•

OCEANFRONT HOMES Comparing the market through Q 2 | 2013 with Q 2 | 2014 WEST MAUI

JAN-JUN | 2013 JAN-JUN | 2014

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

$5,700,000 Low Sales Price Change: 1226%

$5,850,000 Median Sales Price Change: 15%

$6,000,000 High Sales Price Change: -38%

$11,700,000 Sales Volume Change: 15%

# of Transactions

Average Sales Price

Average Days on Market

Average $/SQ. FT.

2 2

$5,065,000 $5,850,000

319 222

$1,449 $3,505

0%

15%

-30%

142%

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

OCEANFRONT HOMES

Comparing the market through Q 2 | 2013 with Q 2 | 2014 SOUTH MAUI

JAN-JUN | 2013 JAN-JUN | 2014

NORTH SHORE

JAN-JUN | 2013 JAN-JUN | 2014

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

$1,600,000 Low Sales Price Change: 69%

$4,600,000 Median Sales Price Change: -8%

$9,300,000 High Sales Price Change: 1%

$35,799,999 Sales Volume Change: -23%

# of Transactions

Average Sales Price

Average Days on Market

Average $/SQ. FT.

7 5

$5,114,285 $5,478,000

285 271

$2,762 $1,736

-29%

7%

-5%

-37%

$5,500,000 Low Sales Price Change: -64%

$5,500,000 Median Sales Price Change: -18%

$5,500,000 High Sales Price Change: 50%

$5,500,000 Sales Volume Change: 385%

# of Transactions

Average Sales Price

Average Days on Market

Average $/SQ. FT.

1 5

$5,500,000 $5,340,000

1385 234

$2,850 $1,651

400%

-3%

-83%

-42%

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

OCEANFRONT HOMES: HISTORICAL OVERVIEW WEST MAUI, SOUTH MAUI, AND NORTH SHORE

The following chart provides an historical overview of the Average Sales Prices in each market with all three markets converging in the first half of 2014 with relatively similar Average Sales Prices:

Average Sales Price Comparisons by Year $10,000,000 $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0

WEST MAUI AVG SP THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

SOUTH MAUI AVG SP WEST MAUI: RESORT MARKET REPORT

N SHORE AVG SP COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

OCEANFRONT HOMES: HISTORICAL OVERVIEW WEST MAUI, SOUTH MAUI, AND NORTH SHORE

Oceanfront Home Sales By Area 16 14 12 10 8 6 4 2 0

WEST MAUI SALES

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

SOUTH MAUI SALES

NORTH SHORE SALES

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

OCEANFRONT HOMES: HISTORICAL OVERVIEW WEST MAUI

YEAR

NO. SALES

LOW SP

AVG SP

MED SP

HIGH SP

VOLUME ($)

AVG DOM

SP/LP (%)

SP/Sq. Ft.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

4 2 3 2 14 6 4 6 5 2 2 4 5 2

$775,000 $2,500,000 $2,825,000 $1,800,000 $1,300,000 $1,000,000 $2,600,000 $1,500,000 $3,000,000 $3,750,000 $4,200,000 $1,780,000 $2,140,000 $430,000

$5,075,000 $2,750,000 $5,191,666 $2,175,000 $3,511,785 $4,316,666 $3,577,500 $7,215,000 $5,520,000 $6,050,000 $5,600,000 $4,370,000 $4,605,500 $5,065,000

$2,762,500 $27,750,000 $3,000,000 $2,175,000 $2,407,500 $3,750,000 $3,480,000 $6,550,000 $4,200,000 $6,050,000 $5,600,000 $4,350,000 $4,005,000 $5,065,000

$14,000,000 $3,000,000 $9,750,000 $2,550,000 $13,700,000 $8,650,000 $4,750,000 $13,940,000 $8,700,000 $8,350,000 $7,000,000 $7,000,000 $8,600,000 $9,700,000

$20,300,000 $5,500,000 $15,575,000 $4,350,000 $49,165,000 $25,900,000 $14,310,000 $43,290,000 $27,600,000 $12,100,000 $11,200,000 $17,480,000 $23,027,500 $10,130,000

320 228 253 444 342 329 233 223 655 452 69 342 289 319

84% 96% 85% 78% 86% 94% 90% 86% 83% 93% 88% 80% 90% 98%

$930 $1,152 $1,249 $1,121 $1,040 $2,082 $2,269 $1,611 $1,118 $1,655 $3,378 $1,857 $1,041 $1,449

2014 Q2

2

$5,700,000

$5,850,000

$5,850,000

$6,000,000

$11,700,000

222

89%

$3,505

*Notes: these figures do not include the condominium developments of Puamana or Alaeloa, which are sometimes listed in our MLS under both residential and condominium listings.

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

OCEANFRONT HOMES: HISTORICAL OVERVIEW SOUTH MAUI

YEAR

NO. SALES

LOW SP

AVG SP

MED SP

HIGH SP

VOLUME ($)

AVG DOM

SP/LP (%)

SP/Sq. Ft.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

14 5 6 13 9 9 8 6 5 6 12 10 7 9

$1,150,000 $1,305,000 $1,450,000 $1,750,000 $620,000 $3,100,000 $3,600,000 $2,000,000 $1,599,000 $2,525,000 $1,265,000 $1,675,000 $2,500,000 $1,600,000

$3,577,428 $4,311,000 $2,658,333 $4,415,000 $5,450,555 $5,518,888 $8,475,625 $8,450,000 $7,939,800 $6,262,500 $6,744,500 $8,812,616 $7,349,999 $5,520,555

$2,347,000 $4,250,000 $2,575,000 $4,950,000 $4,885,000 $5,250,000 $8,500,000 $7,250,000 $8,950,000 $5,874,000 $4,247,500 $6,565,582 $3,500,000 $5,000,000

$10,500,000 $7,500,000 $4,750,000 $7,500,000 $15,000,000 $8,300,000 $15,000,000 $19,200,000 $10,500,000 $11,250,000 $19,850,000 $27,000,000 $23,000,000 $11,500,000

$50,084,000 $21,555,000 $15,950,000 $57,395,000 $49,055,000 $49,670,000 $67,805,000 $50,700,000 $39,699,000 $37,575,000 $80,934,000 $88,126,127 $51,449,999 $49,684,999

307 217 428 357 481 307 127 188 301 173 307 184 161 265

91% 89% 89% 90% 97% 94% 93% 91% 94% 69% 82% 92% 94% 94%

$1,101 $1,782 $955 $1,156 $1,195 $1,343 $2,081 $2,448 $1,780 $1,314 $1,955 $1,939 $1,483 $2,664

2014 Q2

5

$2,700,000

$5,478,000

$4,600,000

$9,300,000

$27,390,000

271

92%

$1,736

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

OCEANFRONT HOMES: HISTORICAL OVERVIEW NORTH SHORE

YEAR

NO. SALES

LOW SP

AVG SP

MED SP

HIGH SP

VOLUME ($)

AVG DOM

SP/LP (%)

SP/Sq. Ft.

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

7 7 3 7 7 5 2 3 0 5 0 4 2 3

$375,000 $179,995 $885,000 $1,575,000 $875,000 $1,475,000 $1,410,000 $1,895,000

$942,857 $1,335,570 $1,528,333 $2,432,142 $1,754,857 $3,254,000 $2,555,000 $3,715,000

$800,000 $1,100,000 $1,150,000 $2,500,000 $1,750,000 $3,700,000 $2,555,000 $3,400,000

$1,550,000 $3,075,000 $2,550,000 $3,500,000 $2,600,000 $4,250,000 $3,700,000 $5,850,000

$6,600,000 $9,348,995 $4,585,000 $17,025,000 $12,284,000 $16,270,000 $5,110,000 $11,145,000

309 398 14 337 387 304 76 361

86% 90% 99% 86% 85% 92% 95% 86%

$437 $942 $641 $791 $1,538 $1,091 $725 $984

$1,750,000

$2,482,000

$2,500,000

$3,760,000

$12,410,000

156

87%

$1,152

$1,790,000 $965,000 $965,000

$4,172,500 $1,742,500 $2,995,000

$2,625,000 $1,742,500 $2,520,000

$9,650,000 $2,520,000 $5,500,000

$16,690,000 $3,485,000 $8,985,000

347 531 816

85% 88% 83%

$1,477 $856 $1,521

2014 Q2

5

$2,000,000

$5,340,000

$4,500,000

$8,250,000

$26,700,000

234

90%

$1,651

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.

For more information on the Kapalua Resort, Napili Bay Condominiums, Kaanapali, and Oceanfront Homes, including active listings, current market summaries, and listing updates, please contact:

COURTNEY M. BROWN, REALTOR (S) VICE PRESIDENT ISLAND SOTHEBY’S INTERNATIONAL REALTY LUXURYREALESTATEMAUI.COM cb@LuxuryRealEstateMaui.com 808.250.0210

© Courtney M. Brown, REALTOR. All Reserved.

The material contained in this report is based on information that is considered reliable, however, as it has been supplied by third parties. We cannot represent that it is accurate or complete, and it should not be relied upon as such. MLS data from the Realtor’s Association of Maui has been provided by other sources and should be independently verified. You should conduct your own investigation and consult with appropriate professionals to determine the accuracy of the information. Data used in this report on Kapalua was only for properties within the Kapalua Resort and varies from the MLS district of Kapalua. It does not include the condominiums at Puna Point or homes/land that aren’t part or could not be a part of the Kapalua Resort Association.

Kaanapali and Napili area sales include Leasehold properties, which therefore affect the statistical averages. The search criteria used for Kaanapali was the district of Kaanapali and may include properties that are not part of the resort. For Napili, the search criteria included the condominiums of Hale Napili, Napili Bay, Napili Kai (Puna I & II and Napili Lani), Napili Shores, Napili Surf,/Napili Puamala, Napili Sunset. It did not include Napili Point or Honokeana Cove. The report includes data reported to the MLS by members of the Realtor’s Association of Maui and may not detail all property sales, such as those that change hands without the involvement of a Realtor.

THROUGH QTR 2 | 2014 www.LuxuryRealEstateMaui.com

WEST MAUI: RESORT MARKET REPORT

COURTNEY M. BROWN, R(S) Island Sotheby’s International Realty

This report is based on information gathered from the Maui MLS system. It is based on third party reporting, and cannot be guaranteed as it may not reflect all activity in the market.

No portion of this work may be utilized or reproduced without the author’s permission.