Aloha from Sunny and Richard - summer is in full swing on Maui, the water is a comfortable 82 degrees, and we are starting to see some recovery in our economic sectors, albeit a slow process. 

Today it was reported in The Maui News, AOL co-founder Steve Case has significantly expanded his stake in Maui Land & Pineapple Co., buying additional stock that increases his ownership to 62.8 percent of the company.  Maui Land and Pineapple is the owner of Kapalua Resort

Case paid $15.6 million to acquire an additional 4 million shares, according to a report filed Monday with the federal Securities and Exchange Commission. The deal comes just days after Case paid $16.5 million to acquire 4.27 million shares July 28, under a rights offering by the company.

The back-to-back transactions more than triple Case's holdings in Maui Land & Pineapple, to a total ownership of 11.8 million shares.

The company held a rights offering that gave existing shareholders a chance to buy more ML&P stock. The sale was part of an effort to raise cash and retire some $40 million in convertible notes, a portion of the company's significant debt.

Maui Land & Pineapple filed a separate report last week saying it had completed the sale on the New York Stock Exchange.

Chief Financial Officer Tim Esaki said Wednesday that ML&P was pleased with the result of the sale.

Mr. Case, who has served on the board of directors since 2008, previously held a 41.2 percent stake in Maui Land & Pineapple, giving him a controlling interest.

But with his investment this week, he edged toward two-thirds ownership of the company, a supermajority of shares that could give him significantly greater decision-making power.

Maui Land &Pineapple Company may be heading toward more stable footing: the company reported a $4.6 million loss for the second quarter of 2010, a significant improvement on the $54.2 million loss reported for the same period last year. 

We send warm alohas from our island paradise and hope to see you on Maui again soon. 

Tennis is a passion in both our lives, and Richard was good enough in his day to have a National Ranking!  I'm a tennis hacker but have fun anyway.

We were honored to meet tennis legend Chris Evert during her recent trip to Maui.  This was her second time to Kapalua Resort, and she promises to return because, like millions of others, 'she loves Maui'! 

To say she is a down to earth person is an understatement.  For someone of her athletic stature in the world, she is funny, engaging and a direct and warm individual.  It was so interesting to hear her speak about her life and how fame affects the famous.  It is hard to imagine how difficult it would be to live in such a 'fishbowl' where every move is being watched and reported.  She is the type of person you are immediately drawn to, and the evening was immensely enjoyable.

The setting for our little party was at the Beach Club, Residences on Kapalua Bay,  located on the ocean at - Kapalua Bay.  The Residences is our newest collection of oceanfront condominiums, blending full ownership 3,000 sq. ft. to 4,200 sq. ft. residences, with 2 and 3 bedroom one month fractional condominiums managed by The Ritz Carlton.  If you would like information please let us know.

The Beach Club is open to owners and guests of The Residences, as well as members of our Kapalua Club.  We've spent an afternoon or two enjoying the sounds of the Kapalua Bay waves and palm trees rustling in the wind and can attest it is a very special place!  We send you warm alohas from Maui, and hope to see you in our island Paradise soon.  Sunny and Richard

Big news in the world of world class resorts occurred today when Wells Fargo Bank, trustee of the mortgage lending trust group that foreclosed on the Makena Resort last year, fended off two additional bidders Tuesday and prevailed - with a $95 million bid - to purchase the 1,800-acre property and the Makena Beach & Golf Resort. 

This was front page news in our Maui News today, and here is the article in full:

The action occurred in 2nd Circuit Judge Shackley Raffetto's courtroom, with the judge confirming the sale during the completion of a foreclosure auction that started on the Wailuku courthouse steps in May. Raffetto agreed to reopen bidding to allow two additional bidders to participate.

The ownership of the property will move from court receivership to a "new owner designated by the bidder," according to a news release from the lender group. The new owner was not identified.

Furutani said the new owners will be able to command investment capital to expand the resort, which opened as the Maui Prince Hotel in 1986.

Former owners Morgan Stanley and local partners Everett Dowling and Trinity Investments had big plans for Makena before the national real estate market cratered. They paid about $570 million in 2007 to acquire the resort, hotel and golf courses from Seibu Group, which had its own financial problems in Japan. Then they invested at least another $100 million in plans and projects before their investment group failed to keep up the payments on a $192.5 million first mortgage last year.

Among the plans then was to replace the 310-room Maui Prince Hotel. During the receivership, the hotel has been managed by Benchmark as the Makena Beach & Golf Resort.

In May, at a brief auction on the courthouse steps, Wells Fargo, acting as agent for the creditors, bid $55 million, using its credits as tender. Only one other bidder, who did not identify himself, made a bid. By that time, the junior lenders had already been wiped out.

In Hawaii, foreclosure auctions have to be submitted to the court for confirmation. If the property is desirable, that is usually where the real action occurs, and that is what happened Tuesday.

The purchase includes the resort's golf courses and county authorizations for up to 1,100 residences. The authorizations come along with obligations to build up to 400 units of affordable housing and many other conditions.

During the foreclosure period, which lasted about 10 months, the creditors authorized considerable expenditures to keep the hotel operating and to expand the resort. A Makena Ranch guided horseback ride was one, as well as reopening a restaurant and other improvements.

Furutani said the employees had been magnificent during the period of uncertainty. "The employee family has been the biggest asset," he said.

Willie Kennison, Maui director of the International Warehouse and Longshore Union, which represents the employees, said the auction sale was a step in the right direction.

"We feel very positive about this outcome," he said. "We have talked to representatives of new ownership, and we know they are really committed to Makena and to Maui. That is good news for employees and good news for our island guests."

Furutani said the resort's hotel occupancy is double what it was a year ago.

"The resort is in better condition, and morale is high since we were able to rehire most of the employees who had been let go when the prior owner went into default on its debts," he said.

He acknowledged that the economy is still down but predicted that the infusion of capital to remake the resort will "also be for the benefit of Maui County."

We'll keep you posted on new information about Makena - while we absolutely love Kapalua Resort, golf in Makena is a favorite of ours :-)  Warm alohas from Sunny and Richard