Kahala Neighborhood – Old Money, Presidents, Descendents, and CEOs

KahalaThe Sony Open is being played right now (and every January) at the Waialae Country Club in the Honolulu neighborhood of Kahala on the island of Oahu in Hawaii.  It’s not just wealthy golfers who love Kahala – it’s known throughout the islands as the place where old mone, new money, and crooked money goes to retire. The neighborhood has one of the largest concentrations of wealth in the State of Hawaii with an entire street of high multi-million dollar properties and estates – and the fancy front gates to prove it.

Kahala

Kahala sits on the back side of Diamond Head but before you reach Aina Haina and Hawaii Kai. It’s a flat neighborhood within a 20-minute drive of downtown even with traffic and to get to Waikiki never takes longer than 5-10 minutes. There is a mix of old money and new money with the old time Hawaiian families having been there for up to a century and the newcomers mostly since WWII building bigger and more ostentatious mansions. One of the best things about Kahala is that the State of Hawaii has denied the residents the ability to shut down the Kahala beaches because free public access to all beaches is written into the Hawaiian constitution.  Frankly, it’s a nice beach but it doesn’t compare with Lanikai, another beach that the wealthy would love to lock the rest of us out of.

Kahala

On the far end, just past the country club, is the Kahala Hotel and Resort (hint: free dolphin show) – which used to be the Kahala Mandarin but changes owners from time to time. Kahala is a favorite location for celebrities and business moguls to purchase vacation homes and given the multi-million pricetags on the homes – it’s been a flippers paradise. Homes in Kahala range from $2 million upwards to $20 million with the beach side of the road being where the upper range sits.

Kahala

There are lots of rumors and stories about movie stars and rich tycoons having places in Kahala – but I haven’t seen a single one of them confirmed by a reputable source. There is however, a bizarre story involving Genshiro Kawamoto, the Japanese billionaire and rumoured gangster. From the 1980s to the 2010s he bought up to thirty properties in Kahala and moved gaudy and bizarre statues to them. When the neighbors complained about his lack of upkeep and ugly statues, he moved three homeless families into three of his mansions. When he was buying, he would roll up in his limo, have his driver knock on the door and offer a 5 day quick title for cash well over the market value. Then he started bulldozing mansions that were perfectly fine, filling in swimming pools with concrete, and essentially trying to drive market values down. He was finally forced to sell, but not before proving himself the worst neighbor ever.

The people who sold were happy, the homeless families were happy, but no one else was thrilled until he was gone. There are many bizarrely vacant mansions that went to ruin during his Kahala hobby time.
Kahala
There are past stories of Kahala famous people – Time Magazine founder Henry Luce, David Geffen of Geffen Records, and a few other not so well known rich folks. Rich white people started moving to Kahala after World War II. Back in the real old days, however – it was only pigs and cattle that lived in Kahala. It was where Kamehameha the Great landed his invasion from Maui in 1795. Most of Kahala became his descendents property, ending with Bernice Pauahi Bishop who transferred it the Bishop Estate Trust when she died. The Bishop Estate still owns the majority of Kahala – though not the houses along the beach which were converted from lease-hold to free-hold in the late 1960s when the residents sued and forced the Bishop Estate to sell them them land their houses sit on.
Kahala
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