Archive for the ‘Hawaii Shopping Centers’ Category

Hawaii Shopping Center sells for near 10% return

May 17th, 2010 No Comments
Recently the Kele Center, located on the island of Maui in the city of Kahalui, sold.  The Shopping center is approximately 14,820-sq. ft. and sold at a price of $4,925,000.  Anchored by Denny’s Restaurants, Super Cuts, Rent-A-Center, and Edward Jones, this well-located community center was a great investment for the new owners.  The property is located just outside of the airport and down the road from Borders, Sports Authority, Lowe’s, and Costco.  The property sits on a land area of approximately one acre.  This Hawaii commercial investment will provide a nearly 10% return to the new owners of this property.

This is another example of a substantially higher rate of return (CAP Rate) than was achievable by investors just a short 24 months ago.  While it did take a large equity investment in today’s financing environment, the owners will be rewarded for making a move at this time in the marketplace.

I believe 2009 and 2010 will be looked at as low points in the Commercial Real Estate cycle for Hawaii.
  • Share/Bookmark
Posted in Articles, Hawaii Economy, Hawaii Shopping Centers, Investments, Recent Investment Sales Tags: , , , , , , ,

Pearlridge Shopping Center in Hawaii is up for sale

May 14th, 2010 No Comments
The Pearlridge shopping center and mall is the second largest shopping center in the State of Hawaii.  This property has a great tenant mix and is well suited for the trade area it serves.  Over the years, the owners and management have done a very good job of juggling tenants and providing an environment where tenants can thrive.  The sales per square foot of the center are very high for similar and comparable centers.  The mall is anchored by Macy’s, Sears, and a new Bed, Bath & Beyond store (the first one in Hawaii), as well as numerous restaurants.
This shopping center will sell in today’s market.  It is located on a ground lease that will deter some investors in the marketplace because of the potential uncertainties of the long-term land tenure.
The past success of the center, the current tenant mix, and the strong, stable performance will attract a new owner to this property.

It is likely that that owner will reinvest in the property, as its last major renovation was over a decade ago.

With the lack of capital in the marketplace we expect that the buyer will demand a high rate of return and feel that at this low point in the market it will be rewarded handsomely.
For more information, please see the article from Pacific Business News:
Pearlridge Center up for Sale
  • Share/Bookmark
Posted in Articles, Hawaii Shopping Centers, Investments Tags: , , ,

Hawaii Real Estate Forecast – Part 2

April 28th, 2010 No Comments

In January, I presented a 2009 summary and 2010 forecast presentation on the Hawaii Retail Market for CCIM.  This video is the second of three parts of the presentation (the powerpoint slides used in the presentation are available or download here).

This video focuses on Shopping center vacancy, new tenants and sales ideas. Outlined below are the main points of the video:

Recent Vacancies:
For Circuit City, most of their vacated space has not been released. About two-thirds of their stores are still vacant, which means there are 45,000 SF concrete boxes that are sitting vacant.

For Hawaii, we’re keeping our eye on Blockbuster, as they occupy approximately 120,000 SF  here.  Should they decide to  pull out of the market, we’d be losing 20+ stores at about 5,000 SF a piece, many located in shopping centers.

Expanding Retailers:
Slides 11 and 12 list Tenants who have opened in 2009, spent money, made the investment, and took the risk. These are very few and far between.

Ideas for Landlords:
The key is to create momentum, and increase advertising. Hire merchandising consultants because most Tenants are not capable of producing great storefronts.  They could gain a lot from a professional consultant. Twitter campaigns are working for impulse daily specials, such as a restaurant tweeting a daily special.

  • Share/Bookmark
Posted in Articles, Hawaii Economy, Hawaii Retail Properties, Hawaii Shopping Centers, Leasing, Video Tags: , , , , ,

Hawaii Shopping Center Sells for 20 Million in Profit

February 25th, 2010 No Comments

hawaii shopping center,hawaii investment property,hawaii investment properties

A Hawaii shopping center sells for 20 million dollars in profit after only 8 years! This article demonstrates that despite the recession that investment properties in Hawaii are still are great place to invest your money. Hawaii shopping centers though range in price prove their worth in long term value. Alexander & Baldwin Inc. has proven this with their real-estate strategy and with the huge profit margin experienced from the Mililani Shopping Center.

  • Share/Bookmark
Posted in Hawaii Shopping Centers

Hawaii Commercial Real Estate Loans are Being Re-negotiated and Extended

February 12th, 2010 1 Comment

While visiting clients in New York City, we noticed the beginning of a trend.  Several of the large borrowers have been able to extend the due date deadlines for their Hawaii commercial real estate loans.  We noted that the terms for these loans were exceptional, with very low interest rates. The lenders, rather than foreclose or take the Hawaii property back at this point, have agreed to extend the low interest rates in hopes that the situation gets better.  Taking back a property in today’s environment is an expensive and time-consuming business.  This allows these owners to continue being able to keep their mortgages current and retain the low interest rates that were achieved three and four years ago.  In most cases, the properties are still throwing off positive cash flow to the borrowers.

Hawaii Commercial Real Estate Loans

We noted that these borrowers, being in New York City, and being actively involved in the financial markets, seemed to have better access to the different tranches or levels of lenders within each of the loans.

Many Hawaii borrowers have tried to communicate and work with the different tranches of lenders without much success.  The larger borrowers in the money city centers seem to be having better results at negotiating first the riskiest pieces of the loans, and then second the main body or first position of the loan to achieve these extensions.

  • Share/Bookmark
Posted in Hawaii Industrial Properties, Hawaii Office Properties, Hawaii Shopping Centers Tags: , ,

Are foreign investors back in the Hawaiian commercial real estate investment market?

November 25th, 2009 1 Comment

The first evidence of foreign investors coming back to Hawaii is the recent sale of Pacific Guardian Tower at the corner of Kapiolani Boulevard and Keeaumoku Street, near the Ala Moana Shopping Center.  This eighteen story high-rise office building was recently purchased by a Japanese investor (Maruito USA, Inc).  With the yen hovering around 90 per dollar, the Japanese buying power goes a long way for U.S. real estate.  Undoubtedly, the location and attraction of Ala Moana Shopping Center was a high priority for this investor.

In addition, since direct flights were announced to China we have had several inquiries from investors and real estate operating companies to purchase specific types of assets to service this new visitor coming to the islands.

With this first evidence of a new wave of investors, we will be looking east again, hopefully, for many of our investment real estate buyers.

  • Share/Bookmark
Posted in Articles, Hawaii Shopping Centers, Recent Investment Sales Tags: , , , , , ,

Today there are 326 properties available for sale in the State of Hawaii

October 29th, 2009 1 Comment

I checked in on the market today, and found there are 55 shopping centers and retail properties for sale, 42 office buildings, 49 industrial properties, and 7 hotels available for sale over $1 million in the State of Hawaii.

Inventory has been climbing this entire year with a lack of sales and some financial pressure on owners.

  • Share/Bookmark
Posted in Hawaii Economy, Hawaii Industrial Properties, Hawaii Office Properties, Hawaii Shopping Centers
Get Cheap Cell Phones and Wireless Deals. | Thanks to Best Savings Accounts, CD Rates and UK Loan