PBN building for sale
The Shidler Group is putting a Kalakaua Avenue office building on the sales block along with 30 separate office condominium units in Waikiki, saying it wants to focus its attention on much larger commercial properties it bought late last year.
Building available
The Shidler Group is putting the Pacific Business News Building on the market:Location: 1833 Kalakaua Ave.
Asking price: $12 million
Size: 10 stories
The San Diego-based real estate investment firm is offering 1833 Kalakaua Ave., also known as the Pacific Business News Building, for $12 million.
It will also sell 30 fee-simple office and retail condo units at nearby Eaton Square in Waikiki, ranging in size from 500 to 4,600 square feet. The units average $350,000 in price and represent the Shidler Group's entire holding at Eaton Square.
"We felt it was a good time to sell because there is pretty good demand for properties in that price range in Waikiki," said Larry Taff, Shidler Group managing partner.
The sales mark the latest move by the Shidler Group, which has been busily making deals lately. In December, it purchased the downtown Davies Pacific Center and the Pan Am Building on Kapiolani Boulevard for a combined $90 million.
Around the same time, Shidler Group sold its interest in the Waikiki Galleria Tower, which houses the DFS Galleria. In that deal, local developer Bill Mills bought out the Shidler Group and a third party in a transaction worth $125 million.
Taff said the sale of the Waikiki properties will allow the Shidler Group to concentrate on the Davies Pacific Center and the Pan Am Building.
Mike Hamasu, research director for real estate firm Colliers Monroe Friedlander, said shedding the Waikiki holdings makes sense since vacancy rates there are among the highest on Oahu.
"They'll be able to focus on properties with a higher potential to make money," he said.
However, Hamasu said he expected the properties to generate significant buying interest since Hawaii commercial property is still viewed as a solid investment in a time of stock market volatility.
Property records indicate the 10-story Kalakaua building, located just Diamond Head of the Hawaii Convention Center, was purchased in 1996 for $7.6 million.
Taff said the Eaton Square properties were bought in 1996.
