Market Reports

Category Archives: Hawaii Shopping Centers

FOR SALE: Fee Simple Grocery Anchored Shopping Center – Hawaii

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For more information, please contact Mark Bratton at

808-523-9708 or email mark.bratton@colliers.com

 

Investment Summary

Offering Price:

$23,212,000

Year 1 Cap Rate:

7.53%

Year 3 Cap Rate:

9.40%

Occupancy:

80%

Total Leasable Area:

73,524 SF

Land Area:

7.066 Acres (307,795 SF) (1)

(1) A 27,704 SF portion of the parking lot is subject to a license agreement which runs through 2079 (see marketing package).

 

Investment Highlights

  • 73,524 SF grocery-anchored shopping center leased to established tenants such as: Waikoloa Village Market (owned & operated by KTA), First Hawaiian Bank, Chevron, and many more!
  • Anchor Waikoloa Village Market has been at the property for over twenty years, renewed and expanded its size in 2005
  • Waikoloa Highlands Center is the only grocery-anchored property in the Waikoloa Village area
  • Waikoloa Village Center is being marketed on current in-place income at 80% occupancy including seller master lease (see Rent Roll for detail)
  • Approximately 35,704 SF of the occupied GLA (60%) is leased at rates below current market rates – Net Operating Income (NOI) is projected to grow more than $1,084,000 (62%) over the hold period
  • Waikoloa Road is the main east-west road crossing the island from Waikoloa to Hilo – the strong grocery anchor with various retail and service uses make Waikoloa Highlands Center a point of destination in the community

For more information, please contact Mark Bratton at

808-523-9708 or email mark.bratton@colliers.com

Alexander & Baldwin buying Pearl Highlands Center for $141.5M

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http://www.examiner.com/images/blog/EXID10529/images/pearl_highlands_center.JPG

 

http://www.bizjournals.com/pacific/news/2013/05/30/alexander-baldwin-buying-pearl.html?ed=2013-05-30&s=article_du

By:, Reporter- Pacific Business News

 

A&B Properties, Inc. has agreed to purchase the Pearl Highlands Center, a 415,000-square-foot, fee-simple retail center in Pearl City for $141.5 million, the company announced on Thursday.

The real estate subsidiary of Honolulu-based Alexander & Baldwin Inc. (NYSE: ALEX) expects to close on the transaction later this year. A&B said that the purchase price includes the assumption of a $59.3 million mortgage, which matures in September 2016. The closing of the purchase depends on various conditions such as the lender’s approval of the loan assumption.

The center, which sits on 13.5 acres, is 98 percent leased and anchored by Sam’s Club, Regal Theaters, Ross Dress for Less, 24 Hour Fitness, and a soon-to-be-opened Buffalo Wild Wings.

“The Pearl Highlands acquisition will represent a significant advancement of our strategy to migrate our commercial portfolio back to Hawaii,” A&B President and Chief Operating Officer Chris Benjamin said in a statement. “The addition of Pearl Highlands will boost our total Hawaii commercial square footage over the 2 million square-foot mark — a 25 percent increase — and will make A&B the second largest retail owner/operator in the state.”

A&B expects to fund $82.2 million of the total purchase price with a combination of 1031 and reverse 1031 exchange sale proceeds from transactions involving both Mainland commercial assets and non-income producing land in Hawaii, Benjamin said.

Morgan Stanley bought the Pearl Highlands Center in 2004 for $113.5 million and sold itless than two years later for $130 million to a Boston real estate investment company called AEW Capital Management, the current owners.

Castle Family Properties In Kailua Could Be Up For Sale

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http://www.hawaiinewsnow.com/story/22287351/castle-family-properties-on-oahu-could-be-up-for-sale

Posted: May 17, 2013 8:10 PM Updated: May 18, 2013 5:42 AM

By Ben Gutierrez

KAILUA, OAHU (HawaiiNewsNow) -

After more than a century of ownership by the Castle Family, Kailua's 38-acre town center could be up for sale, along with other commercial properties in Kaneohe and Honolulu.

The sale of those properties could reportedly bring in as much as $1 billion for the Castle Foundation.

Over the last decade, Kaneohe Ranch, which manages the land, has spent millions of dollars on improvements in Kailua, which has attracted new tenants such as Whole Foods and Pier 1. It has also sold property for a new Target store.

A real estate expert said it would be attractive to a possible buyer. "Kaneohe ranch has done a fabulous development of the property," said Stephany Sofos. "They took property that was down and not in good shape and they made it the highest and best use. Now by selling it, the beneficiaries of Kaneohe Ranch will reap the benefits of this."

Kaneohe Ranch president and CEO Mitch D'Olier would not confirm that the properties have been put up for sale. But in a printed statement, he said the company is considering alternatives.

"These options include selling some or all of the owners' real estate holdings in Hawaii and elsewhere, or retaining ownership of some or all of the real estate. No decision has been made concerning whether any of these holdings will be sold," D'Olier's statement said.

JUST SOLD: Land Under West Maui Center

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The Leased Fee under West Maui Center in Lahaina, Maui was just sold this past Friday! We received many offers which we leveraged to create a competitive bidding enviroment amongst the buyers.

Buyers across the country vied to provide a winning bid on this extremely rare ground lease. The compeititon drove up the price and drove down the rate of return. We only see a handful of these fee simple interest that are sold each year. We appreciate the opportunity to work with both parties.

 

98 Commercial Properties For Sale in Hawaii But Why Aren’t They Moving?

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Recently, many of my buyers complained that most of the offerings in the Hawaii market are "junk." What is even more unsettling is that 23 of these properties have been on the market for 9 months or more and stale at this point.

Investors ARE looking to invest in Hawaii but they are seeking quality properties. There are a few on the market and I will share with you my 2 cents in the next posts.

Here is the breakdown of properties for sale on the islands:

67 properties for sale at $2 – $5 million

28 properties for sale at $5 – $20 million

3 properties for sale over $20 million

Of the 98 properties, 3 made it to my Top 3 Picks. Stay tuned to find out how these 3 picks may mean REAL income and REAL opportunities for you to make REAL money!

Survey Says: Find Out What Investors Are Looking For

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Colliers Investment Services conducted a survey at the International Council of Shopping Centers' annual real estate convention. Though this was based on a national crowd, I believe they are also representative of trends in Hawaii investment properties:

  •  86% of respondents believe 2012 will fare BETTER than 2011
  • 82% of buyers are looking for VALUE-ADD properties
  • 68% of transactions are closing for ALL CASH
  • 71% of financed transactions are occurring through LOCAL banks

 

SIZZLING: Investors Are Taking a Serious Look at Hawaii Shopping Centers

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Investors are buzzing over LOW cap rates and CHEAP monies for investments in Hawaii shopping centers. During a presentation yesterday at ICSC RECon in Las Vegas, Goldman Sachs procalimed “get it now, while you can!”

With clouds on the economic horizon, they suggest investors may become risk averse by the 3rd quarter and it is unlikely that interest rates are going anywhere but up. We are seeing debt financing for the best properties at 3%. It is almost like 2005 again.

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