Waikiki Trade Center back on the market for $42 million
The Waikiki Trade Center is back on the market for $42 million.
The property at 2255 Kuhio Ave. is being listed by CB Richard Ellis Hawaii, which recently took over the 24-story building's management and leasing and announced a multimillion-dollar renovation.
"Our client had several inquiries into selling the asset," said Scott Gomes of CBRE Hawaii, "and because of this interest, asked us to see what the market might offer under more formal marketing efforts."
In February, an affiliate of Beverly Hills-based 3D Investments bought the center for $30 million from a Japanese investor, confirmed Tom Kenney, a broker at Chaney Brooks & Co. who helped represent the seller in the transaction.
Property records indicate that the previous sales transaction was for $8 million in April 2005. Back in 1987, during the Japanese real estate bubble era, the trade center sold for $44.8 million.
The transaction prices do not include ground below the center, which is owned in part by the Queen Emma Foundation.
Demand for office space is ticking upwards in Waikiki, according to brokers, due in part to increased redevelopment activity.
"Waikiki is changing into an upscale destination, and it's attracting upscale tenants," said Jamie Brown of Hawaii Commercial Real Estate, which is leasing the ANA Kalakaua Center. "There's a renewed interest."
Base rents in Waikiki range from $1.36 to $1.55 per square foot per month, according to Colliers Monroe Friedlander.
Renovations are under way at the 203,747-square-foot Waikiki Trade Center, according to manager Steven Sullivan of CBRE Hawaii, including improved air conditioning, lobbies and landscaping.
Current occupancy of the center hovers around 70 percent.
While CBRE Hawaii is marketing the building as a "Class A" property, other brokers have listed it in the past as "Class B."
CBRE Hawaii calls it an underperforming property in a strategic location near many of Waikiki's renovation projects.
The center was built in the 1980s by developers Jack Myers and Bruce Stark.
3D Investments also bought Waianae Mall last spring. The mall is also on the market, for no list price.