CIRI Effectuates Sale of Makahu’ena Estates

After several years of planning, entitlement, development and marketing efforts, in February, CIRI effectuated the sale of its Makahu’ena Estates development located on the island of Kauai, Hawaii.

CIRI, through its wholly owned subsidiary CIRI Land Development Company (CLDC), acquired the former Coast Guard property in 1996 as part of the 1976 Cook Inlet Land Exchange, which enabled the company to bid on federal surplus properties throughout the U.S.

Initially, the land on what would become Makahu’ena Estates was platted for 25 single-family lots and several other larger parcels. In an effort to preserve the inherent beauty and natural resources of the property’s coastal location, and in furtherance of the goal of a sensitive approach to development, CLDC went through the permitting process to combine the parcels and reduce the density, resulting in a development plan for a smaller number of single-family lots. After analyzing many configurations, a 10-lot subdivision was found to provide the best value to the project.

Recognizing the importance and responsibility of respecting the land, community and culture, CLDC took a comprehensive approach to the project, engaging engineers and archeologists, community members, and county, state and federal agencies. An extensive site analysis prior to the project’s commencement took into account the area’s environmental, archaeological and cultural history, infrastructure requirements and potential secondary impacts (jobs and employment, population and housing).

Construction of the 13-acre site began in 2016 and included blasting, crushing and placing more than 30,000 cubic yards of lava rock that was used to build numerous retaining and privacy walls. This work was executed in a tight three-month window (Jan. 1–March 31, 2017) to accommodate the breeding season of migratory shorebirds, when no ground disturbance construction could take place in proximity to their nests.

In fall 2017, as the project neared completion, several local honored guests and neighbors, along with CIRI President and CEO Sophie Minich and Chief Operating Officer Chad Nugent, participated in a traditional Hawaiian dedication and blessing. According to Hawaiian custom, when a place of business, new land development or new home opens its doors, it is common to invite a Hawaiian kahu (guardian or minister) to bless the location.

Despite the COVID-19 pandemic, earlier this year, CIRI effectuated the sale of the property to a successful Utah-based homebuilder who is an active real estate developer on Kauai. This sale marks the last of CIRI’s current Hawaii development efforts. The funds from the sale will be put to work on other investments in 2021 as part of CIRI’s strategy of growing the company for the long-term benefit of its current and future shareholders.