On SecondShelters.com: In Honolulu, Marco Polo Spells Opportunity
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There’s an old investment adage: Buy when people are selling and sell when people are buying.
On July 14, 2017, there was a fire at the Marco Polo high-rise in Honolulu that damaged some 200 units and will cost approximately $100 million to repair. It wasn’t the first. There was also a fire just four years prior in 2013 causing $1.1 million in damage. There are no sprinklers in the 1971 building. After the first fire, the HOA got an estimate to retrofit the building with sprinklers. The average cost was $8,000 per unit or roughly $4.5 million. After this fire, I think it’s highly unlikely a sprinkler retrofit wouldn’t happen. I suspect insurance companies would demand it.
Doesn’t exactly smell like a dream Hawaiian getaway, does it? What it should smell like is opportunity.
