Medical building plans dropped
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Plans for a new medical office building near Chinatown have been dropped by Seattle-based developer, who has decided to forego the project to pursue other developments.
HighMark Investments LLC, which had planned to build a 225,000-square-foot medical center at 230 N. Beretania St., is now trying to sell the 65,000-square-foot lot, on the fringe of the city's Chinatown redevelopment district across from Aala Park, for between $14 million and $16 million.
The company bought the lot a year ago.
Mike Kerby, HighMark's chief executive officer, said the decision had nothing to do with the liquidity crunch that has followed the collapse of the subprime lending market on the mainland -- which some brokers say may yet affect some commercial projects here.
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A Seattle-based developer has shelved plans to build a new medical office building near Chinatown, instead putting the downtown property up for sale.
HighMark Investments LLC last year announced plans to develop a 225,000-square-foot medical facility at 230 N. Beretania St., which was to include a surgery center, orthopedic facility, retail space and more than 750 parking stalls.
But the company, which has demolished several low-rise commercial buildings, recently decided against completing the build out to pursue other projects, said Mike Kerby, HighMark chief executive officer.
The developer listed the property last week for between $14 million and $16 million with Colliers Monroe Friedlander Inc.
"We just felt like we've taken the project as far as we can take it," Kerby said. "The project was ready to go, we just as a company needed to make a business decision on what projects needed to build out."
Kerby said the decision had nothing to do with the liquidity crunch that other developers seem to be facing due to the collapse of the subprime lending market.
Local brokers are expecting some fallout of commercial projects, specifically those that don't have financing in place.
"If they're not out of the ground yet I expect some fallout," said Steve Sofos, chief executive officer of Sofos Realty Corp.
HighMark bought the 65,000-square-foot property a year ago for an undisclosed price from Excel Equity LLC and Maalaea Harbor Associates LLC.
Kerby said that four groups, locally and from the mainland, are interested in the property, which has received site and foundation permit approvals and is about three months away from receiving a building permit for a medical center, which he believes is the best use for the site.
The lot, on the fringe of the city's Chinatown redevelopment district across from Aala Park, is zoned commercial with a 200-foot height limit.
The real estate and investment firm, which has more than $225 million worth of investment properties in Washington, Idaho and Hawaii, has no other projects underway in the islands. The company, which is run by Kerby and Mark W. Robison, the former owner of RCI Pacific, owns between 6 and 7 acres at Campbell Industrial Park.
