King’s Shops sold

A unit of Waikoloa Development Co.
sells the high-end retail center

CORRECTION Saturday, January 29, 2005 » A story on page C1 yesterday incorrectly referred to the Waikoloa Beach Marriott and Outrigger Resort by its past name, the Royal Waikoloan. The hotel was renamed in January 2003. The Honolulu Star-Bulletin strives to make its news report fair and accurate. If you have a question or comment about news coverage, call Editor Frank Bridgewater at 529-4791 or email him at corrections@starbulletin.com.

A Connecticut-based investment firm has acquired the King's Shops at the Big Island's Waikoloa Beach Resort.

CoastWood Capital Group LLC, which is one of the partners that bought Maui's Queen Kaahumanu Center in 2003, completed its purchase of the 70,000-square foot resort shopping center yesterday.

The seller, Waikoloa Development Co.'s KS Investment Co., did not disclose the price.

Waikoloa Development said it will continue to manage the shopping center and will retain all of the center's employees.

"Our success in developing, managing and leasing this property led to several favorable offers for the King's Shops," said Thos Rohr, Waikoloa Development's president. "CoastWood is a perfect fit for Waikoloa Beach Resort."

Completed in 1992, the King's Shops is a high-end resort shopping center within the 1,350-acre Waikoloa Beach Resort, which includes the 548-room Royal Waikoloan hotel and the 1,241-room Hilton Waikoloa Village.

The retail center was initially designed by local developer Alan Beall at a price of about $35 million. In 2000, the owners added 19,000 square feet of retail space at a cost of about $10 million.

Tenants include Louis Vuitton, DFS Galleria, Macy's and Crazy Shirts.

This is the second Hawaii acquisition for CoastWood Capital.

Two years ago, the investment firm teamed up with Los Angeles-based Somera Capital Management LLC and Seligman Western Enterprises Ltd. to purchase the 570,000-square foot Queen Kaahumanu Center from Maui Land & Pineapple Co. for about $75 million.