Costco-anchored Hawaii Kai Towne Center Sold
Courtesy of: Duane ShimogawaReporter- Pacific Business News ValueRock Realty Partners, the California-based real estate investment firm which recently purchased the Hawaii Kai Towne Center’s buildings from Kamehameha Schools, paid about $110 million for the leasehold properties, according to public records. The sales announcement late last month did not specify a price paid for the buildings of the 30-acre center, which is anchored by Costco, City Mill and Ross and includes other tenants as Roy’s Restaurant, Outback Steakhouse, Maile’s Thai Bistro, Burger King, Starbucks, Taco Del Mar and Panda Express. It also has two suburban office buildings and a self-storage facility. The $109.9 million sale, which recorded with the state’s Bureau of Conveyances on Nov. 21, shows that Kamehameha Schools, the seller, paid a conveyance tax of about $1.1 million. ValueRock, which owns more than 2.5 million square feet of retail and mixed-use property throughout the Western United States and Hawaii, has been involved in more than $20 billion of transactions during the past two decades. It also owns the Safeway-anchored Kauai Village shopping center on the island’s eastside as part of a portfolio of more than 600,000 square feet of retail properties it owns and manages across the state. About a year ago, Kamehameha Schools put the Hawaii Kai Towne Center’s buildings in East Oahu on the market for an undisclosed price, while retaining ownership of the underlying lands. The move, similar to the trust’s marketing of its Royal Hawaiian Center in Waikiki, which sold for close to $700 million, is part of a long-term strategic plan to generate revenue from commercial real estate sales for the trust’s $9.2 billion endowment to fund its educational mission. Kamehameha Schools also is selling its leasehold Windward Mall in Kaneohe for an undisclosed price.