Search This Blog

Showing posts with label Commercial Real Estate. Show all posts
Showing posts with label Commercial Real Estate. Show all posts

Friday, January 9, 2015

Small Net Increase in Occupied Retail Space in 2014

According to a report issued by Colliers International, a commercial real estate firm, 2014 saw a small net increase in the amount of retail space occupied by merchants.  The report stated that an additional 12,972 sq ft of retail space was filled last year, which reduced the vacancy rate from 4.2 percent to 4.1 percent. As points of comparison, since 2000, the highest rate was 8.5 percent (2003) and the lowest was 2.2 percent (2006). The average retail rate increased to $3.64 per sq ft, up from $3.35 per sq ft in 2013.  Colliers predicts that there is a strong likelihood that this will pass $4 per sq ft within the next 18 months.

Source: Honolulu Star Advertiser, 1-9-2015, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Friday, December 5, 2014

Waikiki Commercial Properties Asked to Contribute to Beach Restoration Projects

Honolulu Councilmen Ernie Martin and Stanley Chang are proposing two new bills, Bill 81 and Bill 82, which would require that commercial property owners in Waikiki must contribute to the beach restoration projects for that neighborhood.  Under the Bills, commercial property owners from Ala Wai Harbor to Kaimana Beach and from Ala Wai Canal to the ocean would be taxed an estimated 7.63 cents per $1,000 of assessed value.  This would generate about $600,000 per year for the Waikiki neighborhood.

Rick Egged, the president of the Waikiki Improvement Association and a supporter of the bills, stated, "It spreads the cost over all stakeholders rather than the few who are willing to come up with the money. It also gives us a seat at the table to make sure that the projects are done properly and that they are in keeping with stakeholder objectives. I think all of our members generally believe that establishing this major public-private partnership is necessary,"  City Councilman Chang added, "As Waikiki's councilmember for the last four years, I believe strongly that the only way to preserve Wai­­kiki Beach for today's and tomorrow's residents and visitors alike is to develop and implement a coordinated comprehensive plan for all of the beach rather than continue to react to spot crises."

Jerry Gibson, the area vice president of Hilton Hawaii, stated that he will support the bills provided that the money stays focused on improving Waikiki beach.  Gibson commented, "I believe in the public and private aspect of putting it together. I wouldn't like to see the money go toward creating a bureaucracy. I want to see it go to maintenance and care of the beaches. We've seen with weather and hurricanes and those kinds of things that the beach can go away quickly. For the economic viability of Wai­kiki and the pleasure of the tourists and locals who live here, it's important to continue to maintain the beach area and continue to make it the best in the world. If everyone does a little bit, we can do a lot together."

Source: Honolulu Star Advertiser, 12-5-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Friday, November 28, 2014

Maui Lu Resort in Purchased by Capbridge Pacific LLC

Capbridge Pacific LLC has announced that they have purchased the 28-acre Maui Lu Resort at Kihei.  The exact price and terms for the property have not been disclosed, but it has been reported that it was in the upper-$60 million range.  According to Capbridge, the existing 150 unit property will be redeveloped into a Hilton Grand Vacations times-share with 388-units.  The redevelopment will cost approximately $300 million and should be completed in 2017.

Source: Honolulu Star Advertiser, 11-28-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Thursday, November 27, 2014

ValueRock Realty Partners Purchases Hawaii Kai Towne Center

Kamehameha Schools has announced that they have sold the Hawaii Kai Towne Center to ValueRock Realty Partners.  The exact financial terms were not disclosed, but the Hawaii Kai Towne Center is the fourth-largest shopping center on the island and includes two suburban office buildings, a self-storage facility, and a retail shopping and dining center on a 30-acre lot.  L. Jack Wong, the CEO for Kamehameha Schools stated, "The transition of Hawaii Kai Towne Center from a fully owned Kamehameha Schools property to one where KS retains the land but sells its improvements strengthens our perpetual endowment in support of our educational mission."

David Lee, the founder and chairman of ValueRock, added, "Over the years, ValueRock Realty Partners has been engaged in ownership and management of key Hawaii properties, We are pleased to have the opportunity to expand our presence here by adding Hawaii Kai Towne Center, a quality, mixed-use asset, to our portfolio."

Source: Honolulu Star Advertiser, 11-27-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Tuesday, November 18, 2014

YMCA Offers to Sell or Lease Two Residence Halls Next to Manoa Campus

The YMCA of Honolulu has announced that they would like to sell or lease two residence halls that they own on the corner of University Avenue and Metcalf Street next to the University of Hawaii at Manoa. Colliers International, a commercial real estate brokerage firm, will be marketing the property without an asking price, but suggest that a new owner could either renovate the two buildings and keep it as student housing or convert them into either senior housing or condominium units.  Colliers issued a statement that read, "The YMCA board determined that continuing to allocate association funding and staffing to maintain and provide upgrades to the Atherton YMCA residence hall services and buildings was not an efficient way of expanding the Y's mission of strengthening community through programs focused on youth development, healthy living and social responsibility."  The money from the sale of the property will help the YMCA expand services elsewhere.

The City and County of Honolulu values the property for tax purposes at $10.4 million. Colliers commented that the replacement cost of the two buildings is closer to $13.5 million.

Source: Honolulu Star Advertiser, 11-18-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Tuesday, November 4, 2014

Walgreens Considering Selling Their Ala Moana Location

Walgreens Co. has announced that they are considering selling their Ala Moana store location, which is on the corner of Kapiolani Boulevard and Keeaumoku Street across from the Ala Moana Center.  Walgreens has just built an adjacent parking structure to this location which is designed to support a 20-story tower. Colliers International, a commercial real estate firm, has been retained to market the property.  Colliers marketing material stated, "The site provides for various redevelopment options. The demand and prices for new high-rise luxury residential condos in the urban core substantiate the construction costs."  An asking price has not been released to the public.

Source: Honolulu Star Advertiser, 11-4-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Friday, August 22, 2014

Commercial Real Estate Sales at $2.22 Billion in First Half of 2014

According to Colliers International, a commercial real estate brokerage firm, investors spent a total of $2.22 billion in Hawaii during the first half of 2014 purchasing commercial properties such as hotels, offices buildings, and warehouses. The single largest sale was the leasehold purchase of the Royal Hawaiian Center in Waikiki by an affiliate of JP Morgan who spent $698 million. The Wailea Marriot Resort sold for $326 million and the Aston Waikiki Beach hotel sold for $183 million, rounding out the top three largest sales.  Colliers' report commented that the rising demand for Hawaii commercial properties is being fueled by growth in the local economy, low interest rates, more lending and tighter competition for commercial properties on the mainland. The report stated, "Investors seeking higher yields are now scouring secondary and tertiary markets for those properties that are diamonds in the rough."

Source: Honolulu Star Advertiser, 8-22-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Saturday, August 16, 2014

Clifford Center Office Building in Downtown Honolulu Sells for $9.3 Million

The Pacific Office Properties Trust has just announced that they will be selling the Clifford Center office building in downtown Honolulu to the McKinney Capital Group for $9.3 Million.  The 10-story building is located at 810 Richards Street.

Source: Honolulu Star Advertiser, 8-16-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Friday, August 1, 2014

The Kahala Hotel & Resorts Sells for $300 Million Leasehold

Resorttrust Inc., a Japanese based company, has announced that they have purchased the Kahala Hotel and Resort for $300 million Leasehold.  This equates to approximately $887,000 per room, which makes it the highest per-room price paid for any Oahu hotel.  Joe Toy, the president and CEO of Hospitality Advisors commented, "Four Seasons Resort Hualalai on the Big Island is the only property in Hawaii that ever traded for more money on a per-key (room) basis.  It went for $1.1 million per key, but it was fee simple. This property, on the other hand, is leasehold and it's a pure hotel transaction. The reaction from investors will be, 'That's a pretty high price.'"

The Kahala hotel's nightly room rate is currently about $495, with the resort's two-bedroom Presidential Suite going for about $4,000 a night ant its two-bedroom Imperial Suite going for about $10,000 per night. Keith Vieira, of KV and Associates, Hospitality Consulting, commented, "Since their average daily rate is no where near the $800 that you would expect to see for that price, I think it sends a message to others who are looking that there is strong faith in the continuation of the market on Oahu. It also speaks to the strength of Hawaii's time-share, vacation ownership and the condotel market. There is lots of demand as seen by the success of Trump and strong interest in the coming Ritz-Carlton towers. These kinds of owners usually have higher occupancies and can get more per key."


Source: Honolulu Star Advertiser, 8-1-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Wednesday, July 30, 2014

Royal Hawaiian Center Sold for $696.5 Million Leasehold

According to the Hawaii Information Service, the Royal Hawaiian Center has been purchased from J.P. Morgan Asset Management from Kamehameha Schools for $696.5 million Leasehold.  The sale included all of the mall buildings, but did not convey the underlying lands.  Kamehameha Schools has stated that they will not disclose the length of the lease, but it is generally speculated by real estate professionals that the lease will be for approximately 60 years.

Proceeds from the sale of the Royal Hawaiian Center will be reinvested to support Kamehameha School's operations.  The center was Kamehameha School's biggest single asset and the school decided to sell the property as a way of diversifying its roughly $9 billion investment portfolio.  Kamehameha Schools has announced that they would also be willing to sell the Hawaii Kai Towne Center and Windward Mall in Kaneohe in a similar leasehold sales transaction.  The value of these two properties combined is estimated at between $275 to $400 million Leasehold.


Source: Honolulu Star Advertiser, 7-30-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Wednesday, July 2, 2014

Update on The Waikiki Landing

The Waikiki Landing is a partnership between the state of Hawaii and Honey Bee USA INC. to redevelop the Ala Wai Small Boat Harbor.  However, Honey Bee has just announced that they have lost their major funder for the project, leaving them searching for a new source of financing to meet their contractual obligations with the state. Honey Bee is currently working with four different groups to secure $24 million of funding, and hopes to do so by the middle of this month.  Honey Bee has been paying the state approximately $37,000 per month in land and water rent since January 2014.  However, since they were unable to secure financing, they have missed their June deadline when rent increased to above $70,000 per month.When completed, The Waikiki Landing should have a new boat repair facility and fuel dock combined with restaurants, entertainment venues, wedding chapels and space for the U.S. National Kayak Team.

Debo­rah Ward, the spokeswoman for the Department of Land and Natural Resources stated that they would like to work with Honey Bee to make this project happen, but if Honey Bee is unable to comply with the terms, the lease could be terminated and a new proposal could take its place.  Ward stated, "If another (request for proposal) were to be issued, actual development could occur in a much shorter time period since the land use entitlements and approvals have already been obtained, the property has been cleared and graded, environmental issues have been addressed, foundation testing has been done and the parcels have been legally subdivided." Ward noted that Honey Bee has already paid the state more than $865,000 in rent and development fees and has cleared the property, removed contaminated soiled, razed a dilapidated boatyard building, secured various land use entitlements and approvals, and obtained city permits. Ward added, "All of this was done at Honey Bee's expense and at no cost to DLNR, the state, or the taxpayers."

Jeff Merz, a member of the Waikiki Neighborhood Board commented, "People hated the project at first, but they made changes and once the company started clearing land, the community seemed to accept it. The area is run-down and there's been crime. People understood that we needed something to energize the location. Now to be told that it could stay a big empty construction site for a longer period, the community won't like that."

Source: Honolulu Star Advertiser, 7-2-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Friday, June 20, 2014

Wailea Beach Marriott Resort & Spa to Sell for $325.7 Million



Sunstone, a real estate investment trust, has announced that they have agreed to purchase the 544-room Wailea Beach Marriott Resort & Spa on the island of Maui for $325.7 million. The company added that they plan to invest about $65 million to upgrade the property over the next two years, which will hopefully allow them to raise the hotel's average daily rate.  Evan Pahaski, Sunstone's vice president of corporate transactions, stated, "Sunstone has been looking in Hawaii for quite some time. It's a great market with a lot of different demand generators in leisure and group. South Maui, specifically Wailea, has always been a prominent resort address on Maui."  Ken Cruse, the CEO for Sunstone, added, "Wailea is one of the most attractive and supply-constrained leisure and group destinations in the United States."

Source: Honolulu Star Advertiser, 6-20-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Saturday, June 7, 2014

Royal Hawaiian Center Sold to J.P. Morgan Asset Management

J.P. Morgan Asset Management has announced that they have purchased the Royal Hawaiian Center in Waikiki from Kamehameha Schools.  While the exact sale amount or terms have not been disclosed, it is generally believed that the price in excess of $500 million.  The only thing that is known is that the purchase is for the Leasehold interest of the land for 60 years and Fee will be retained by Kamehameha Schools.  After that 60 year period, Kamehameha Schools would recover complete ownership of the property.

Chris Graham, the managing director of J.P. Morgan Asset Management, stated, "Kamehameha Schools has created, maintained and continually enhanced the world-class shopping and community destination. We are excited to continue Kamehameha Schools' responsible stewardship of this important local asset, its enthusiastic promotion of Hawaiian culture, and its enriching community programs."

Source: Honolulu Star Advertiser, 6
-7-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Thursday, April 24, 2014

Pagoda Hotel to Expand Brand to Maui

Developer Peter Savio has announced that he will be converting the Maui Beach Hotel into his Pagoda hotel brand by the end of this year.  The purchase of the Maui Beach Hotel is scheduled to close on June 27, 2014, and is currently being managed by Aqua Hotels and Resorts.  Savio stated that he would retain all of the current employees and hire additional ones after he expands the property by adding an additional 155-room hotel to the site.  The Pagoda Hotels caters primarily to locals and college students.  Savio stated, "The Maui Beach will keep its name and join the other hotels in the Pagoda Collection, which includes the White Sands Hotel and the Ewa Waikiki Hotel in Waikiki."

Source: Honolulu Star Advertiser, 4-24-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Tuesday, April 22, 2014

Vision to Increase Shared Office Space in Chinatown Neighborhood, Oahu

Real Office Centers has stated that they will be working to create a new shared office space in Chinatown, in a two-story building on the corner of North Hotel Street and Nuuanu Avenue.  The concept of the shared office space has been around for several decades, and, in this case, would offer up to 30 small companies a mailing address, phone answering and forwarding service, conference room rentals, and office space for lease on a full or part time basis. Currently, the Waikiki Landmark building in Waikiki, the Ala Moana Center in Ala Moana and the Waterfront Plaza in Kakaako offer shared office spaces.

According to Ron McElroy, the CEO for Real Office Centers, the Chinatown location would offer 14,000 sq ft of office space.  McElroy hopes that a grand opening can be held sometime next month.

Source: Honolulu Star Advertiser, 4-22-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Friday, April 11, 2014

54-Acre Commercial Land in Kapolei Purchased for $24 Million

Avalon Development Co. LLC, a local development firm, has announced that they have purchased the second phase of the Kapolei Business Park for $25 million.  The tentative plan is to divide the 54-acre industrial subdivision into 17 smaller lots to sell to businesses that have industrial needs. Avalon also plans to retain a total of 26-acres into a commercial complex with space available for businesses to lease.  President and CEO of Avalon, Christine Camp, stated, "This is an unprecedented time for growth of construction-related industries on Oahu. With limited land available for private ownership, Kapolei Business Park will be a beacon for small-business empowerment." Camp added that she plans to start sales soon, and hopes to be able to deliver the lots to buyers by the end of this year.

Source: Honolulu Star Advertiser, 4-11-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Monday, March 10, 2014

Hotel Sales Reach $1.97 Billion in 2013

According to a report issued by Hospitality Advisors, a hotel consulting firm, there were a total of $1.97 billion of hotel real estate sales in 2013.  Furthermore, 2014 is off to a great start with an estimated $500 million in hotel transactions closing within the first two months.  President of Hospitality Advisors, Joseph Toy, commented, "There's still an unbelievable amount of activity going on. We've also seen a shift in players with a lot of new investment coming from private equity funds and a lot of new brands coming into Hawaii. Ultimately, they'll refresh the properties that they've purchased and the destination."

Mark Bratton, the international vice president for Colliers International, a commercial real estate company, stated that most of the buyers are from the New York financial market, but there are also buyers from Hawaii, Canada, Japan, China, Singapore and Australia.  Low interest rates and low inventory have helped to drive up the prices, but the main motivating factor have been the strong hotel performances, the diverse visitor base and growing airline. Bratton commented, "Waikiki and Oahu/Hono­­lulu economy is what everyone has been chasing and believes will continue to increase at a healthy pace."


Source: Honolulu Star Advertiser, 3-10-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Tuesday, March 4, 2014

Aston Waikiki Beach Hotel Sold for $183 Million

Inland American Lodging Group Inc., a Florida based company, has announced that they have purchased the Aston Waikiki Beach Hotel for approximately $183 million.  The 23-story hotel is located on Kalakaua Avenue in Waikiki has a total of 645-rooms, 3,300 sq ft of meeting space, 19,400 sq ft of retail space, and a heated outdoor swimming pool and deck area.  President and CEO for Inland America, Marcel Verbaas, commented, "Waikiki comprises the most vibrant lodging market not only on Oahu, but throughout all of the Hawaiian Islands, and Oahu continues to be one of the top performing hotel markets in the nation." Verbaas also noted that the Hotel will continue to be managed by Aston Hotel and Resorts.

Joe Toy, the president and CEO for hotel consultancy company Hospitality Advisors LLC, stated, "This transaction started well before the year ended. It's part of the huge acceleration of transactions that we saw in 2013 and have continued to see this year.  The property is in a great location. There's also been a lot of investor interest in Waikiki, which shows the kind of long-term promise that people that buy and acquire are seeking."


Source: Honolulu Star Advertiser, 3-4-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Saturday, February 15, 2014

Majority of Hana Ranch on Maui Sold for $4.75 Million

Approximately 3,600 acres of the 4,500 acre Hana Ranch on Maui has been sold for a $4.75 million. The new ownership group, Hana Ranch Stewards LLC, has stated that they plan to turn the property into "one of the premier sustainable farms in the state."  Grant McCargo, one of the principals of the company, stated, "We are proud and humbled to become the new stewards of Hana Ranch. To maintain Hana's natural beauty, continue Hana's legacy as a productive ranch, and be part of a vibrant community centered on healthy food, clean water, and a thriving environment is truly a blessing."

Source: Honolulu Star Advertiser, 2-15-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Friday, January 24, 2014

Update on Ka Makana Ali'i Shopping in Kapolei

DeBartolo Development LLC held a blessing ceremony at the site of the planned Ka Makana Ali'i shopping mall in Kapolei despite not having signed an official lease agreement with the state Department of Hawaiian Home Lands, which owns the 67 acre site.  The DHHL has provided a contract with DeBartolo to pay them $600 million in base rent over 65 years and a percentage of the rent that the mall would receive from their tenants, which would amount to approximately another $400 million. DeBartolo hopes to work out the final details of the lease shortly, as they have stated that they would like to begin construction of the 1.4 million sq ft mall by the end of this year.

Source: Honolulu Star Advertiser, 1-24-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com