Rosebay U.S.A. Corp. is selling its 35,813-square-foot property at 1685 Kapiolani Blvd. for $8.3 million, said Andy Friedlander, chief executive officer of Monroe & Friedlander Inc. which is representing Rosebay. Friedlander said the owner has received several offers but he declined to disclose their names.
He said that Rosebay wanted to take its profits in the property, which it acquired back in 1988. "It's time to make a few dollars," Friedlander said.
These days, those profits may be thinner, according to one local real estate appraiser.
The $8.3 million listing price translates into a cost of $231.75 per square foot, which is well below the $350 to $450 per-square-foot price range that Kapiolani Boulevard parcels sold for during the early 1990s, said Bob Hastings, president of Hastings Conboy Braig & Associates. And even at its current listed price, the property may be a tough sell, he said.
According to Friedlander, the property has vast potential for redevelopment. Under its current zoning, a buyer could erect a high-rise on the site, either for residential or office use, according to a brochure prepared by Monroe & Friedlander.
Right now, the property houses a low-rise building whose tenants include Kamaaina Vision Center, Friedlander said.
The planned sale of the Rosebay's parcel comes as several nearby properties have changed hands recently. A group headed by local developer Bill Mills and investors Jay Shidler and James Reynolds in February purchased the 10-story office building known as the FAA Building from Tokyo-based Urban Tatemoto. The high-rise is located across the Ala Wai from the under-construction convention center on the Ewa side of Kalakaua Avenue.
That same investor group acquired the nearby Eaton Square Shopping complex in Waikiki from Hachidai U.S.A. for $8.2 million last August.
Last June, Oak Tree Capital Management, a California-based money manager, acquired the mortgage to the 196-unit Waikiki Landmark luxury condominium complex on the Diamondhead side of Kalakaua Avenue, across the Ala Wai from the convention center site.
The sale of the mortgage paved the way for the ongoing sale of the individual apartment units.