Timeline
For an estimated timeline of events and milestones: Schedule an introductory call with the Senior Investment Consultant to receive the access code to The Investment Details page.
The Past - Milestones & Achievements
Grubbing and Grading began on-site in early 2022. This area will initially be used for an Entryway, Greenhouse, Storage Container, and future water-well construction. Here a D9 dozer pushes brittle volcanic rock.
- In 2018 the principals began research on the subject property and engaged with the representatives of the selling entities.
- After additional research and general feasibility study the principals’ negotiated terms and conditions and executed an LOI to purchase with the sellers.
- The principals hired a land planning consultant, engineering firm, and archeological experts which would become the first members of our on-island development team. A more intensive feasibility study and due diligence was conducted.
- With favorable outcomes on all reports and after a deep analysis, the principals executed a PSA with each of the two sellers in 2019.
- The management entity and Fund I were created, and the Fund was registered with the SEC who approved its Form D in late 2019.
- The on-island development team was expanded to include land planner, engineer, surveyor, biologist, archeologist, and community relations director.
- Although the COVID crisis began to severely affect the flow of incoming investor capital in early 2020, our investor relations and marketing team pressed forward and made respectable gains while most business retracted, remained stagnant, or ceased operations altogether.
- The creation and release of our Matching Funds Real Estate Credit Certificate was a great success.
- In 2021 we significantly increased the rate at which we were raising capital and reclaimed time lost during the most difficult period of the COVID crisis.
- Our architect completed and we release conceptual design of the secure gate house entryway, retail outlets, and welcome center.
- We fully completed acquisition of our 324 acres nearly one-year ahead of the contract terms.
- We hired our future Real Estate Broker of Record and Sales Director, Tom Horvath.
- Funds were earmarked for our commercial water well construction in 2022
- An initial grubbing and grading (site work) permit was applied for and obtained. This work began in February 2022.
- After funding and closing the A-Class round, we transitioned to our new investor portal.
- Working closely with our securities law firm, we established The Kona Estates Fund II, LLC, registered the company with the SEC, and received our Form D Exemption allowing us to enter 2022 with a B-Class Equity Offering, our Primary Round of Funding.
Several of our A-Class Fund I investors have already taken positions in Fund II as well. New investors are coming to us with the understanding that our offering and capital structure provide an excellent refuge from the current hyper-inflation occurring in the market today.
- ACCESS THE INVESTMENT DETAILS PASSWORD
- CONNECT WITH A PRINCIPAL OF THE FUND OR SENIOR CONSULTANT
- RECEIVE PROJECT UPDATES
The Present - An Investment Opportunity
Ho'okena Beach Park. A historic site open to the public and a short drive from Opihihali.
The 324-acres has been fully acquired, is owned by the Fund, and is unencumbered. Much of the preliminary work toward receiving the necessary approvals to begin the construction phase of the project is underway. A third revision of the master plan was recently drafted, a survey, title work, and hydrology report have been done and will be re-verified. Preliminary discussions for the conceptual plan have been favorably received and will be officially filed upon completion of an E.A. Report. Plans are in place to develop water wells and water storage facilities. Initial grubbing and grading for an entryway, greenhouse, and storage container began in 2022.
We have assembled a team of legal, financial, architectural, and development professionals to execute the tasks necessary to begin the development and build the foundation from which our future real estate sales and contracting team will work. An administration and marketing office has been established in Los Angeles exclusively for the project.
A Real Estate Investment Fund Opportunity in The Kona Estates Fund II, LLC is available now for investor review. Individual accredited investors can secure a limited and exclusive position during the early stages of the project. Funds are due on a rolling-close. This offer gives an individual accredited investor the opportunity to purchase Class-B Equity Interests at a favorable valuation and to participate in the project alongside the Sponsor/Developer/Manager, Kona Development Partners, LLC. This investment represents ownership in The Kona Estates at Opihihali project in its entirety as described in The Project. The total second-round Investment offering is limited to a MAXIMUM of $20MM for a 40% Equity position; the minimum investment is $100K.
While our in-house Investor Relation department is fully capable of raising all necessary capital for the project, family office and institutional investors participation in the latter half of each of our equity rounds is an available option to help fast-track fundraising. This will allow the Fund to reduce its cost of capital and advance the timeline of the project, potentially resulting in lower cost and greater profits. If we partner with a family office or small institutional investor, all remaining equity positions will be immediately closed, so please contact use now if you are interested in securing a position in this project.
The Near Future - Real Estate Sales & Development Commencement
While the fundraising is underway, the initial property reports will be re-verified, an EA report will be completed, official filings will be made, and final entitlements obtained. Initial proceeds will cover the early cost of infrastructure development, sales and marketing, operations. Once early development has begun, we will assemble our real estate sales and marketing teams; both on-site in Hawaii as well as an off-site interactive showroom in Los Angeles. The project is expected to cash-flow by the end of year two at which time distributions to investors will begin.
The development team will seek to work with native Hawaiians, local universities, and the farm bureau to incorporate traditional practices common to the region into the Kona Estates project. Developing this beautiful land with respect to its history and culture will be a priority along with maintaining strong relationships with the community. We will adopt sustainable practices as well as incorporate the famous Kona Coast coffee production into the community through a co-op. Wind, solar, and geothermal technologies will be considered and implemented when possible.
Distributions & Total Combined Capital Raises
It is anticipated that the project will become cash-flow positive through homesite, Ocean Villas, Pool Villa Estates, and Grand Estates home sales. Distributions to investors will be quarterly. See our cash flow projections and estimated distribution schedule.
The Kona Estates Fund II, LLC is currently offering a Class-B Interest to complete the capital raise through its Primary Round of Funding. These funds will be used to complete infrastructure development and community amenities. The Manager anticipates the Class-B Interest being fulfilled by accredited investors and family office and/or institutional investors. The issuance of Class-B Interest to a new investor(s) will dilute the Manager's Class-C Interest, NOT Class-A Interest.
Manager may also elect to utilize institutional financing in the form of construction loans during the investment period on an as-needed, as-sold basis for Ocean Villas, Pool Villa Estates, and Grand Estates home construction.