Developer Savio purchasing
downtown office building

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By Rick Daysog
rdaysog@starbulletin.com

Despite recent financial troubles, local developer Peter Savio is buying an eight-story downtown office building.

Savio said he has reached an agreement to acquire the 1149 Bethel St. building near Beretania Street from a group headed by local real estate executive Putnam Clark.

Savio declined to disclose the price of the deal, which is in escrow.

But the 65,000-square-foot building has been on the market for about $2.5 million.

Savio said he plans to convert the building to an office condominium and sell the units to business tenants. The building will be held in the name of Savio's newly formed 1149 Bethel Street Development and will be financed by the Bank of Hawaii and a mainland bank, Savio said.

Savio -- who met with tenants earlier this week --- said he intends to set up a $2.5 million fund to renovate and upgrade the building.

Built in the 1950s, the 1149 Bethel Street building is about 41 percent leased with about 20 business tenants.

The deal comes as Savio has filed for personal and business bankruptcy several times during the past year.

In February, he and his wife Phyllis filed for Chapter 11 bankruptcy protection due in large part to a dispute with one of his creditors, Central Pacific Bank.

He later filed for Chapter 7 bankruptcy protection.

In addition to the Bethel Street property, Savio is in the process of acquiring three Waikiki buildings from Outrigger Enterprises Inc.