Korean developer enters Kapiolani corridor
SamKoo Development has purchased several Kapiolani Boulevard parcels for $42 million
A new player has entered the development game at Kapiolani corridor.
Affiliates of SamKoo Development Co. Ltd., based in Seoul, have purchased several significant parcels along Kapiolani Boulevard for a combined total of nearly $42 million.
Last week, Sam House Development LLC closed its deal on the 1.43-acre lot at 1391 Kapiolani Blvd., which belongs to Motor Supply Ltd. for $26 million, or $417 per square foot.
In a separate transaction that closed Tuesday, SamKoo Pacific LLC, which also falls under the SamKoo Development umbrella, also purchased two Kapiolani parcels --1631 and 1633 Kapiolani Blvd. adjacent to the Ala Moana Hotel and makai of the Pan Am building.
The two parcels, which combined offer a 1.29-acre lot, sold for $15.5 million, or about $275 per square foot. They are zoned for business mixed-use development.
Both prices are well above the going rate for Kapiolani Boulevard sites of $175 to $200 a square foot as of late last year.
SamKoo's broker in both purchases, Rachael Chung of Concepts Unlimited GMAC Real Estate, said the Korean developer is entering the Hawaii market for the first time.
It plans a luxury condo with some commercial space on the larger lot, but will hold the other parcels as an investment for now.
She said the developer has not yet worked out details on the number of units or pricing for the 1391 Kapiolani Blvd. project, which has a 250-foot height limit.
The company was established in 1958 as a cleaning supply manufacturer, but offers services ranging from facility management to hospital care and staffing. Chung said it has developed many high-rises and office buildings in Korea.
Robert Reierson of Motor Supply Ltd., which owned the lot at 1391 Kapiolani Blvd. said the offer was made all in cash.
Motor Supply began shopping the lot around last fall, after longtime tenant Cutter Chevrolet moved out. It was most recently leased to a parking lot operator.
"We had many offers," said Reierson. "It was a good price. I don't know if was the right price, but it was a fair price."
Motor Supply had owned the lot since 1944, and still operates a shop on Sheridan Street.
Colliers Monroe Friedlander listed the two parcels for the other deal on Kapiolani Boulevard. Colliers' principal broker Andrew Friedlander declined to comment on the transaction, but confirmed that it had closed.
The Kakaako area has seen a recent spate of luxury condominium developments, including the Hokua, Koolani and Moana Pacific towers. Just down the street, another Korean developer, Posec Hawaii, has topped off 909 Kapiolani at the corner of Ward Avenue. Moana Vista, a sister residential tower to Moana Pacific on Kapiolani Boulevard, is expected to open in the summer of 2009.