Behind the Deal: Alexander & Baldwin's intriguing purchase of Manoa Marketplace

-

For the first time ever, the University of Hawaii Manoa Shidler College of Business, UH Athletics and the CCIM Hawaii Chapter teamed up for an event. Besides networking with such professionals as Shidler College Dean Vance Roley, Linda Gee of Standard Commercial and CCIM President Anthony Provenzano of Sofos Realty, it was fascinating to hear the “behind the deal” stories from key executives from such Hawaii commercial real estate heavyweights as A&B and BlackSand Capital.
Jeff Pauker, VP of investments for A&B, spoke about how the tricky Manoa Marketplace deal came about. The deal was a challenge because the land and buildings were owned by separate entities. Pauker said from start to finish, it took A&B about 18 months to get this deal done. A&B first approached the owners of the land, a local family who was ready to sell. There also was less than 10 years left on the ground lease, so when A&B approached the owner of the buildings, an entity in California, A&B, in its proposal, mentioned that there wasn’t much time left on the ground lease and that it would be raising rents. Pauker said the short timeframe sped up the process and the California firm eventually sold its interest to A&B, thus giving it full ownership of the marketplace. A&B said the marketplace is a very attractive asset, as it is the only grocery -and drug-store anchored shopping center in the highly coveted and affluent area of Manoa.

Bryan Li, executive vice president of acquisitions and asset management for BlackSand Capital, gave insight on its recent sale of Pearlridge Uptown II, the portion that includes T.J. Maxx. BlackSand made a 100 percent return on this investment. In 2011, BlackSand bought the asset, which included the former J.C. Penney building for about $36.4 million. It then redeveloped this section of the state’s second largest shopping mall with successful tenants such as Ross Dress for Less and T.J. Maxx, along with dozens of other inline tenants. But with less than 15 years left on the ground lease with Kamehameha Schools, BlackSand decided it should sell Pearlridge Uptown II before the ground lease expired. Li said it went straight to Washington Prime and O’Connor Mall, which owned the rest of Pearlridge. The key Uptown II portion, which comes with development opportunities if the surface parking area is utilized to build more retail buildings, was something Washington Prime and O’Connor coveted. Washington and O’Connor didn’t mind the ground lease issue and wanted to own the entire mall and that key Uptown II portion. Washington and O’Connor went on the buy Uptown II for about $70 million.

Comments

Post a Comment

Popular posts from this blog

Architecture firm starts process to build new office at Bank of Hawaii building

-
Image
G70, one of the largest architecture firms in Hawaii, has officially started the process of building out its new office spaces in Downtown Honolulu, according to public documents filed Tuesday. The Honolulu-based firm has filed two building permits totaling about $1.2 million for the build-out of its new digs at the Bank of Hawaii building at the Financial Plaza of the Pacific. G70, formerly Group 70 International, is expected to move from its current space at the McCandless Building on Bethel Street where it has been for decades towards the end of this year. The architecture firm's move follows the migration of another one of Hawaii's largest firms — AHL, formerly Architects Hawaii Ltd., which moved to the Pacific Guardian Center in Downtown Honolulu, including the penthouse space at the complex's Makai Tower.
Read more

Exclusive: 'Survivor' host Jeff Probst buys posh Hualalai Resort estate in Hawaii

-
Image
Jeff Probst, the Emmy Award-winning host of the reality television series “Survivor,” has purchased an estate within the Hualalai Resort on the Big Island of Hawaii’s west coast for $4.85 million, Shimogawa Scoops has learned. Probst and his wife, Lisa Russell, closed on their big purchase on November 1, which includes 19,864 square feet of land and a four-bedroom, 5.5-bathroom home with an office within Kulanakauhale, the newest residential community in the Hualalai master-planned resort community. The 3,770-square-foot home was built by Aina Ola and furnished by award-winning designer, Gina Willman. It has gourmet kitchens with granite counter tops, custom African mahogany cabinetry, travertine flooring and Madeira concrete shake roofs. Hualalai Realty represented both sides of the transaction. Member amenities for this property include the Keolu Clubhouse and Hualalai Canoe Club, according to Hualalai Realty. The luxury resort community includes the Four Seasons-bra...
Read more

Marcus Mariota buys gorgeous Hawaii home

-
Image
Marcus Mariota, the Hawaii-born Tennessee Titans quarterback, paid nearly double the assessed value of his new Hawaii home. In May, the St. Louis School star purchased a more than 3,000-square-foot home near Kailua Beach in Windward Oahu with four bedrooms and four bathrooms for $2.45 million. The total assessed value for the property is $1.7 million. The purchase came out to $767 per square foot. The home, which was built in 2017 and purchased by Mariota in May, was only on the market for 90 days. It has a total floor area of 4,194 square feet and sits on a 10,000-square-foot lot. Amenities of the home include a pool, maid and guest quarters and a workshop. Mariota, one of the most popular athletes in Hawaii, was a star quarterback for the University of Oregon Ducks football team. Numerous local companies have latched onto his star power by having him become their spokesman, including First Hawaiian Bank and Island Insurance.
Read more