Big stake sold
in Waikele center
A German real estate firm
By Rick Daysog
now has a majority interest
in the property
Star-BulletinA German real estate company has acquired a majority interest in the Waikele Value Center. The company, Jamestown, acquired a majority stake in the popular shopping center yesterday when it merged with owner WCC Associates and acquired the state Employee Retirement System's loan on the property. Terms were not disclosed.
The deal will bring new financing for further expansion by the central Oahu center, which is anchored by Eagle Hardware & Garden, Borders Books Music & Cafe and the Sports Authority.
Jamestown, with offices in Koln, Germany and Atlanta, will become the center's managing partner and will oversee its daily operations. WCC will be the minority partner.
"The interest in investment from outside the state is an indication of the potential of the center," said Richard Gushman II, who heads WCC Associates.
Jamestown will replace lender ERS which provided WCC about $162 million in 1992 to finance the Waikele Value Center and Waikele Factory Outlet Center.
WCC in April sold the factory outlet portion to New Jersey-based Chelsea GCA Realty Inc. for $76.2 million, or an industry record $356-a-square foot. The ERS earned about $105 million in interest payments and the sale of its mortgage on both properties, according to WCC.
The deal is Jamestown's first in Hawaii. The company owns about 50 properties nationwide valued at more than $1 billion. Four months ago, Jamestown acquired the One Times Square building in New York.
