Shidler Group buys two
Honolulu office buildingsThe purchase marks the
third major isle deal this year
for the investment firm
The Shidler Group, a real estate investment firm founded in Honolulu, has agreed to purchase two fee-simple Honolulu office buildings, the 22-story Davies Pacific Center downtown and the 17-story Pan Am Building at 1600 Kapiolani Blvd.
The prices were not disclosed.
The seller, the California State Teachers' Retirement System, bought the buildings in February 1989, paying $102 million for the Davies building and $43 million for the Kapiolani property.
For tax purposes, the state values the downtown property at $62.4 million and Pan Am at $35.9 million.
"We believe we're buying well under replacement costs and we expect it to be a good long-term investment," said Larry Taff, Shidler Group managing partner.
CalSTRS has had the properties on the market since 2001. A spokeswoman for the fund declined to confirm the deal, saying it does not discuss real estate transactions until they are final.
Shidler, now headquartered in San Diego with an office in Honolulu, has recently made several Hawaii acquisitions. In 2001, the firm paid $95 million for the Kalakaua Avenue building that houses the DFS Galleria. Last month, joined by partners Watumull Properties and Bill Mills Development Co., the firm bought seven pieces of property on Kalakaua, making up 11,000 square feet of low-rise retail space, for $10.6 million. Shortly before that, the firm paid $4 million, with partners, for the Bayview Golf Course in Kaneohe.
