Milestones & Achievements. 2018-2021
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.
2018-2019 - INITIAL FEASIBILITY REVIEW: The principals began research on the subject property and engaged with the representatives of the selling entities. Following an intensive feasibility study and due diligence, an LOI to purchase with the sellers was executed. The principals hired a land planning consultant, engineering firm, and archeological experts which would become among the first members of the on-island development team. With favorable outcomes on all reports from the team, the principals executed a PSA with each of the two selling entities in 2019. The on-island development team was then expanded to include surveyors, biologists, archeologist, and a community relations director. The management entity and The Kona Estates Fund I, LLC were created, and subsequently obtained its Form D from the SEC in Q4 2019. Fund I began its A-Class equity offering thereafter.
2020-2021 - COVID: The North American Private Equity deal volume fell by nearly by half from Q2 2019 to Q2 2020. Although this certainly slowed initial fund-raising efforts and added to the overall project time horizon, respectable gains were still made when many other businesses remained stagnant, or ceased operations altogether. The project being free of leverage allowed consistent progress through a period where most debt laden projects using conventional financing ceased. The debt-free capital structure and business model provided the necessary flexibility in confronting unexpected delays such as the COVIC pandemic. In Q4 of 2021 the acquisition was fully completed on the 324-acre site nearly one-year ahead of the contract terms. The Kona Estates at Opihihali project site is now owned free and clear and deeded in the name of the The Kona Estates Fund I and The Kona Estates Fund II. The conceptual architectural designs of the Ocean Villas, Estate Homes, and Grand Ocean Estates were also completed during this time.
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Milestones & Achievements. 2022-2026
Ho'okena Beach Park. A historic site open to the public and a short drive from Opihihali.
2022-2023 SITE WORK: The Kona Estates Fund I, LLC A-Class offering was fully funded and closed. Subsequently, Kona Estates Fund II, LLC obtained its SEC Form D for a second offering consisting of B-Class equity. During this period, initial grubbing and grading permits were approved for the creation of the project entryway, access roads, staging areas, parking, and storage areas. Site work commenced in February 2022, establishing critical infrastructure that will later serve as primary components of the development.
These permitted improvements also provided engineers, archaeologists, cultural monitors, geotechnical crews, biologists, botanists, and other professionals with access to the property to conduct investigations and complete reports and studies related to the project. Extensive engineering work has continued throughout this period, leading toward future detailed modeling and additional grading plans associated with individual homesites.
2024-2026 EIS & ENTITLEMENTS: This period has involved intense and ongoing work focused on advancing the technical, cultural, and civil engineering efforts required to support a successful final entitlement process. An extensive collection of reports and studies has been commissioned and provided to the Environmental Impact Study (EIS) contractor to facilitate a comprehensive review of the project.
This phase of development is inherently methodical and time-intensive, as it advances the project’s civil engineering and master planning efforts. These efforts ultimately include the placement of homesites, private driveway alignments connecting to the primary spine road, and the continued refinement of grading transitions to ensure both constructability and regulatory compliance. During this period, equity fundraising has also continued, with the B-Class equity offering nearing its closing stages.
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