Local group to An investment group headed by local investors Bill Mills and Jay Shidler is purchasing the DFS Galleria building in Waikiki for nearly $100 million.
buy DFS Galleria
for $100 million
Hawaii investors Bill Mills,
Jay Schidler lead the purchase
of the Waikiki propertyBy Rick Daysog
rdaysog@starbulletin.comReal estate executives familiar with the deal said the group has signed a contract with Japan-based seller Nippon Shinpan Co. to acquire the 160,000-square-foot retail, entertainment and office complex.
A representative with the Mills-Shidler group declined comment. Real estate sources said the fee simple deal isn't expected to affect the daily operations of DFS's flagship Hawaii store on Kalakaua Avenue.
DFS, which also operates duty free outlets at Honolulu Airport and the neighbor islands, will continue to operate the store under a 15-year lease.
The deal comes as Waikiki's retail and tourism industries are going tremendous upheaval.
DFS's competitor, Royal Hawaiian Shopping Center, has announced plans for a $24 million upgrade, while Outrigger Enterprises Inc. said it plans to build a $300 million retail, entertainment and hotel project at the site of several of its Waikiki hotels.
However, the recent terrorist attacks have slowed visitor traffic to the isles, leaving the area's economic future uncertain.
Completed last year at a cost of $65 million, the stylish DFS Galleria has become a popular attraction for isle visitors.
The complex, which features a two-story aquarium and decorative ceiling murals, is part of DFS plan to woo back well-heeled Japanese and mainland visitors to the islands' shopping scene.
The Galleria deal is not the first transaction involving the Mills-Shidler group and DFS. The duty-free retailer's sister company Louis Vuitton is a tenant in the Shops at Wailea, which is owned by Mills and Texas investor Ross Perot Jr.