Coastwood Capital Group LLC has announced that they have purchased the leasehold interest in Waikiki Trade Center. While it is unclear, what the company plans for the office building, recent speculation is that Coastwood will transform the property into a hotel as the management company has been instructed not to lease out any of the vacant units. Cordell Lietz, president of Coastwood Capital Group, stated, "The acquisition of Waikiki Trade Center is an exciting opportunity for Coastwood Capital Group LLC to continue to play a role in the renaissance of Waikiki. We are currently refining our business plan for the asset as we strive to find the highest and best use for the property and the market, as we do with all of our investments. In the meantime, there are no immediate changes planned for the property."
The Waikiki Trade Center is located on the corner of Seaside and Kuhio Avenue. The 22 story building has approximately 205,390 sq ft of rental space. Currently, the building is only about 50 percent occupied. Stephany Sofos, a real estate analyst specializing in Wakiki, commented, "More people are working from virtual offices. Here, in Waikiki, it makes sense to do a hotel conversion because market conditions have shown accommodations are needed."
President and CEO of Hospitality Advisors LLC, Joseph Toy, added, "Because it is very expensive to build from the ground up, it's more cost effective to acquire, renovate and reposition. This is a good-sized property in Waikiki and it's on the right side of Kuhio, the ocean side, which is where a hotelier would want to be. If successfully renovated, it would re-energize that area."
Source: Honolulu Star Advertiser, 1-23-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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