An Investment Opportunity in The Kona Estates at Opihihali; a 324 Acre, Luxury Oceanfront Project on the Kona Coast of Hawaii.

Photographs are for conceptual purposes only. Existing and completed construction on the subject site is not expressed or implied.

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The Vision & Concept

The vision for Opihihali encompasses a 324-acre agricultural and residential community and a 15-acre lodging area with amenities for eco and ag enthusiasts. Emphasizing low-density, minimal environmental impact, the community will offer expansive 5-acre+ homesites and a limited number lodge units, the Ocean Villas. Central to its commitment is the preservation and protection of archeological sites and access for native Hawaiians and cultural practitioners, underscored by sustainability through the adoption of renewable technologies and best practices. A conservation zone will be maintained along the sites nearly 3000’ of Pacific coastline. The community’s agricultural operation will be professionally and centrally managed by a co-op from which homeowners’ benefit.

Aloha (/ɑːˈloʊhɑː/; Hawaiian: [əˈloːˌha]) is the Hawaiian word for love, affection, peace, compassion and mercy, that is commonly used as a simple greeting but has a deeper cultural and spiritual significance to native Hawaiians, for whom the term is used to define a force that holds together existence.

Overview

This is an investment offering in a real estate investment fund , The Kona Estates Fund II, LLC. Pledges are being taken now and funds are due on a rolling-close. This offer gives investors the opportunity to purchase Class-B Interests in the Primary Round and to participate in the project alongside the sponsor/developer, Kona Development Partners, LLC. Class-B interest have a Target Equity Multiple of 2.77x and a Target IRR of 25% over the investment period. This investment represents ownership in The Kona Estates at Opihihali as described in The Project in its entirety. This investment offering is limited to $20MM for a 40% equity position; the minimum investment is $100K.

Key Deal Points

Your Investment is Immediately Backed by Free & Clear Real Estate

The acquisition of the 324 acres of oceanfront property has already been completed using private equity funds raised in Fund I.

No Leverage is being used for Infrastructure or Acquisition

The Manager has been patient in its pursuit of this project, tactful in structuring the offer, and successful in its negotiation of favorable acquisition terms. As a result, the Manager does not anticipate needing to use senior debt to finance the infrastructure or complete the acquisition.

Worldwide Demand & Recognition

The allure of Hawaii and its popularity stretches the globe. Simply put, it’s a bucket list item for most everyone to visit Hawaii. Its geographical position is ideal for relatively easy access from the entire Pacific Rim. More than 10MM people visit per year, spend $16B per year, and those figures are increasing 5% per year on average; it’s inevitable that demand in the Hawaiian real estate market will continue to increase while availability continues to decrease.

Economic & Legal System Confidence & Consistency

Although there are many exotic tropical island destinations around the world in which affluent people could invest, call home, and/or have a vacation home, the unstable market conditions and uncertain legal systems of foreign island nations create high levels of risk for such investments. However, Hawaii has a long proven real estate market with a history of appreciation and emergence from economic downturns. When combined with the confidence and consistency the US legal system, Hawaii real estate stands above all other exotic tropical island destination investments.

Dependency upon Debt Mitigated and the Requirement of a Large-Scale Exit Event Eliminated; while Upside Potential is Preserved

The Fund will not depend on large-scale senior debt to complete acquisition, large-scale refinance debt during the investment cycle, or a large institutional purchase event to exit (all of these scenarios are very common with most CRE private equity deals). Due to the disciplined selection of property and favorable acquisition terms negotiated, the Fund will be able to complete infrastructure, acquisition, and amenities construction through this current offering of equity and a future offering of reserved equity that will NOT dilute first round investors. This capital structure in combination with the unrivaled Upside Potential and High Returns often realized in ground-up Development projects (versus value-add, core, and core-plus profiles) is a highly attractive proposition.

Sponsor/Manager/Developer takes No Fees from the Fund

The Manager will not charge any acquisition, disposition, asset/fund management, financing, property management, or construction management fees. In addition, the Manager will not begin receiving its prorata share of distributions until 100% of investors initial capital investment has been returned. When we say you are investing alongside, shoulder-to-shoulder with the Sponsor/Manager and interests are aligned, we are serious!

Sponsor/Manager/Developer Track Record

With a specific concentration in destination real estate, the Sponsor/Manager/Developer has a track record that accounts for nearly $1B in real estate sales via development, value-add, and opportunistic project profiles.

Rolling Exit & Deal Flexibility

Distributable cash is created, and the deal is exited over the investment cycle with each single-family residence or estate homesite sale. The deal does not depend on institutional capital markets during operations or a large institutional buyer for an exit event. The Manager can control the pace of the project, guard against temporary downturns, and take advantage of market surges over the investment cycle. This type of flexibility puts the Fund in the best possible position to achieve projected returns while mitigating risk associated with market fluctuation.

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Investments will be available to Accredited Investors only as described in SEC Rule 501. Offerings have not been approved by the SEC. This is not an offer to sell or a solicitation of any offer to buy any securities in any jurisdiction in which such offer or solicitation, purchase or sale would be unlawful under the securities or other laws of the jurisdiction. Offers are made only by prospectus or other offering materials. To obtain further information, you must complete our investor questionnaire and meet the suitability standards required by law. Plans are preliminary, pending approval, and subject to change without notice. Existing and completed construction on the subject site is not expressed or implied. The project is in a pre-entitlement stage. All photographs, images, and art are conceptual drafts and subject to change. Financial projections and targets are early estimates and subject to change. No guarantees are expressed or implied, there is a risk of loss of capital.

Certain information set forth in this website contains “forward-looking information”, including “future oriented financial information” and “financial outlook”, under applicable securities laws (collectively referred to herein as forward-looking statements). Except for statements of historical fact, information contained herein constitutes forward-looking statements and includes, but is not limited to, the (i) projected financial performance of the Company; (ii) completion of, and the use of proceeds from, the sale of the securities being offered hereunder; (iii) the expected development of the Company’s business, projects and developments; (iv) execution of the Company’s vision and growth strategy, including with respect to future property development and property sales; (v) sources and availability of third-party financing for the Company’s projects; (vi) completion of the Company’s projects that are currently underway, in development or otherwise under consideration; and (vii) future liquidity, working capital, and capital requirements. Forward-looking statements are provided to allow potential investors the opportunity to understand management’s beliefs and opinions in respect of the future so that they may use such beliefs and opinions as one factor in evaluating an investment.

These statements are not guarantees of future performance and undue reliance should not be placed on them. Such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward-looking statements.

Although forward-looking statements contained in this website are based upon what management of the Company believes are reasonable assumptions, there can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements if circumstances or management’s estimates or opinions should change except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.