2569 Cartwright Road, Honolulu
We are excited to announce the sale of this very desirable and centrally located 16-unit APARTMENT BUILDING, blocks away from Waikiki Beach!
Category Archives: Recent Investment Sales
Portion of Hawaii’s 2nd Largest Regional Mall – Sold
A portion of the 2nd largest regional mall in Hawaii, Pearlridge Center Uptown II, was purchased on January 21, 2011 by BlackSand Capital, LLC.
We (Colliers International) represented the Seller in this transaction, which included the former J.C. Penney building, anchored by Borders and Price Busters, as well as the adjacent standalone building once occupied by INspiration Interiors.
Read the full article at Pacific Business News.
Office Buildings in Hawaii – market is starting to rebound
With the closing today of the sale for Bishop Square (usually described as the best office complex in Honolulu), it can be said that the market for the purchase of office buildings in Hawaii is strong again. There was strong bidding for this asset which was openly marketed. There were several established bidders and a couple of major national office building owners looking to enter the Hawaii market who were competing for this asset.
The purchase of this property at roughly 50% of replacement costs will be a good buy for this buyer and allows them to control a major portion of the market place in downtown Honolulu for office buildings. This buyer was well positioned and had put their ducks in line for a purchase like this in 2009. By first addressing any existing building and issues as the recession came on, and then building liquid capital and credit lines to make strategic and opportunistic buys while the market was in the lower range of it’s natural variations.
We expect to see continued strong interest for quality office buildings in Honolulu that do come to market. There are two other office complexes under contract at this time on Oahu that will be major indicators of current value in the marketplace.
Mark D. Bratton
Vice President
Colliers International
220 S. King Street 18th Floor
Honolulu HI 96813
Tel 808.523.9708
email mark@colliershawaii.com
www.markbratton.com
www.colliershawaii.com
With the closing of the sale for Bishop Square (usually described as the best office complex in Honolulu), it can be said that the market for the purchase of office buildings in Hawaii is strong again. There was strong bidding for this asset which was openly marketed. There were several established bidders and a couple of major national office building owners looking to enter the Hawaii market who were competing for this asset.
The purchase of this property at roughly 50% of replacement costs will be a good purchase for this buyer and allows them to control a major portion of the marketplace in downtown Honolulu for office buildings. This buyer was well positioned and had put their “ducks in line” for a purchase like this in 2009. By first addressing existing building issues as the recession came on, they built liquid capital and credit lines to make strategic and opportunistic buys while the market was in the lower range of its natural variations.
We expect to see continued strong interest for quality office buildings in Honolulu that do come to market. There are two other office complexes under contract at this time on Oahu that will be major indicators of current value in the marketplace.
Under the Radar of Hawaii Commercial Real Estate
We are starting to notice more and more activity in the marketplace today here in Hawaii. A number of those deals are happening offline, off market, and before the general public has a chance to see them.
In recent conversations with my clients, we have discovered a ground lease that says ‘Sold’ and also an office complex on the west side, which will be closing in the next few days. Both of these are market rate caps or investment returns for the owners, and will provide substantially higher returns today than what was provided for buyers 24 months ago.
Commercial real estate sales in Hawaii up 256% in April 2010
The market is showing signs of a very distinctive pick-up in activity in the spring of 2010.
In the first quarter of 2010, there were 17 sales of commercial and investment properties in the State of Hawaii. In the month of April 2010, there were 15 recorded sales. In addition, the volume of sales seems to be picking up, topped off by a $32MM sale in April of this year.
We are seeing investor sentiments improving toward commercial real estate, particularly, when measured against reproduction costs. Investors for this one month are voting with their checkbooks that commercial real estate in Hawaii is a good investment and not as susceptible to the ups and downs of other equity markets across the globe.
Mark D. Bratton
Vice President
Colliers International
220 S. King Street 18th Floor
Honolulu HI 96813
Tel 808.523.9708
email mark@colliershawaii.com
www.markbratton.com
www.colliershawaii.com
The market is showing signs of a very distinctive pick-up in activity in the spring of 2010.
In the first quarter of 2010, there were 17 sales of commercial and investment properties in the State of Hawaii. In the month of April 2010, there were 15 recorded sales. In addition, the dollar volume of sales seems to be picking up, topped off by a $32MM sale in April of this year.
We are seeing investor sentiments improving toward commercial real estate, particularly, when measured against reproduction costs. Investors for this one month are voting with their checkbooks that commercial real estate in Hawaii is a good investment and not as susceptible to the ups and downs of other equity markets across the globe.
There are several “Call for Offers” this week so we expect to see continued interest in good quality Hawaii Investment Properties.
Hawaii Shopping Center sells for near 10% return
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.
Hawaii Retail Property sells for a very ambitious price
Attached is an article regarding Safeway’s recent purchase of a new three acre site in the heart of Honolulu’s Commercial Real Estate Market post “Great Recession”. This site formerly housed a Cadillac dealership, which has been closed for approximately the last year. Safeway has an existing store very nearby that was not able to be enlarged, but does very high gross sales. Safeway is paying a price very close to top of the market, even prices that have not been seen in two or three years. At nearly $200 per square foot for the land, this will buoy land prices in the heart of Honolulu at least for the rest of this year. Many of us had thought that land prices would start to drop, but this single transaction shows a very motivated buyer with a known history for strong sales reinvesting in the heart of Honolulu’s population.
Distressed Property in Hawaii sells just before confimration sale
A large parcel of industrial property sold in the first quarter of 2010 despite the uncertainty around the ownership of the property. The land area is approximately 59 acres, and the property sold for $12.5MM. The property had been in foreclosure and reportedly, the note had been sold at a small discount off the face value. An investor came in just prior to the confirmation hearing and paid the price to pay off the mortgage. The property is unimproved, and was recently rezoned for industrial use. Most likely, plans include one to ten acre industrial lots with common areas and streets being put in by the new developer.
There was a lot of interest in this property, and we can see why, with a price tag of $4.86 per square foot for the raw, unimproved industrial land, there seems to be a profit for someone. At this price, it should allow for a developer to hold the property for a couple of years, make improvements, and sell the individual lots at a retail price as the market strengthens.
Are foreign investors back in the Hawaiian commercial real estate investment market?
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.
Golf Courses in Hawaii are Selling
As I was reviewing the investment property sales in Hawaii for the ending of third quarter 2009, I noticed that, year to date, three golf courses have sold. The common thread seems to be that the properties that have sold are somewhat distressed, with sellers having some motivation or reportedly having other debts to pay.
One new Golf Course has just come on the market for sale. The only other “Resort” property that has sold so far this year is a 12-unit hotel in Waikiki. There will be many more resort properties coming to market in the next year.
