Maui mall now has single owner
Seligman Western buys out its partners in the Queen Kaahumanu Center
The majority owner of the Queen Kaahumanu Center on Maui has bought out the interests of its two partners.
Seligman Western Enterprises Ltd., a San Francisco-based family-owned real estate investment firm, which owned 80 percent of the 555,000-square-foot mall, in November acquired the interests of Somera Capital Management LLC, a Los Angeles real-estate investment firm, and San Francisco-based CoastWood Capital Group LLC in an entity that bought the mall in 2003. Terms of the transaction were not disclosed.
The partners, under the entity QKC Maui Owner LLC, acquired Maui's largest shopping center in September 2003 for about $75 million from Maui Land & Pineapple Co. and the state Employees' Retirement System.
CoastWood Capital will continue to be the investment manager on behalf of Seligman while General Growth Properties Inc., which owns and manages Ala Moana Center and Victoria Ward Centers, will continue to handle management and leasing.
"Seligman's intention has always been to make the Queen Kaahumanu a town center for the local community," said Daniel Goldberg, vice president of Seligman Western Enterprises. "Nothing's changing that anybody will notice at the center."
The Kahului center, which has more than 100 shops and restaurants with mostly five- to 10-year leases, is anchored by Macy's and Sears. It is about 95 percent occupied, up from 80 percent in 2003.
Tenants opening in the center this year include Borders, Antipastos, PacSun and Forever 21.
General Growth is currently in discussions with about a dozen specialty retailers that currently are not in Hawaii, but are interested in coming to the center, said Cordell Lietz, president of CoastWood Capital Group.
He declined to disclose the names of prospective tenants because leases haven't been signed.
The partners have invested an estimated $5 million over the past two years to renovate the center's common areas. No major changes are expected in the tenant mix.
Queen Kaahumanu Center was built in 1972 and expanded in 1994.
"It was always Seligman's intention to own 100 percent of this asset and be the long-term owners of the center," Lietz said.
Seligman Western Enterprises, in partnership with CoastWood Capital, also owns the Kings' Shops at the Waikoloa Beach Resort on the Big Island.
A representative from Somera Capital Management couldn't be reached for comment yesterday.