An effort to revive a Hawai?i resort that hosted Elvis Presley and other stars during its heyday collapsed because of a loan default by the developers, according to its financial backers.
The project to redevelop the former Coco Palms resort on the central eastern coast of Kaua?i fell apart after developers defaulted on $11.2 million in financing, The Garden Island reported yesterday.
The resort operated from 1953 and was famed for being frequented by stars including Presley, Frank Sinatra, Rita Hayworth, and Bing Crosby.
It fell into disrepair after it was heavily damaged during Hurricane Iniki in 1992, according to the newspaper.
The ruins of the hotel on about 20 acres (8.1 hectares) in the community of Wailua will be put on the market, according to Stillwater Equity Partners.
Stillwater and loan servicer Reef PCG, both based in Alpine, Utah, backed the project by Coco Palms Hui, LLC, which was established by developers Chad Waters and Tyler Greene of Honolulu real estate firm GreeneWaters, LLC.
The collapse of the Coco Palms project evolved over the last two years after Greene and Waters were unable to deliver on commitments to obtain funding to avoid default, said Aaron Gerszewski, Stillwater's asset management director.
Waters and Greene did not respond to the newspaper's requests for comment.
Stillwater remains confident Coco Palms could be redeveloped, but more likely as a budget property rather than a luxury resort, Gerszewski said.
