Pacific Business News Friday, October 31, 2003 Real Estate "Build-it First" Plan Works on Maui by Prabha Natarajan A second try proved lucky for a Maui residential community developer that found its niche in building and furnishing spec homes. PRM Realty group has sold six homes for $70 million in the past year at Maluhia, a 10-acre residential community in Wailea. This is quite a change from a couple of years ago when the whole project was in jeopardy of not taking off. In 2001, PRM Realty had 13 of its 14 exclusive home lots under contract for sale for $100 million but lost most of the deals during the economic downturn. For a year the company tried to develop a new sales strategy. "We decided to show the market what our concept and design was and the only way to do it is to build it first," said Rob Harte, managing director of PRM Realty Group. To that end, PRM Realty partnered with local architectural firm Group 70 International to build exclusive homes. The company also invested $30 million in infrastructure development such as a private club and park. The two firms also set up a design firm, Crisscross, LLC, led by Larry Frej, a former conservator at New York's Metropolitan Museum of Art. Homes can be furnished with antiques, art and custom-made furniture for an extra $1 million. The Chicago-based company has eight more single-family home sites, which carry tags ranging from $7 million to $18 million. Of the remaining lots, PRM Realty has begun construction of three homes and will package them with interior décor to be sold as spec homes. Most of the home buyers are from the West Coast and are international travelers. Typically, the homes are upward of 6,000 square feet and have extensive views of the mountains and the Pacific Ocean. Coldwell Banker Island Properties is taking over home sales from Wailea Realty.