California firm
purchases Lahaina mall
The Lahaina Cannery Mall, one of 20 commercial and residential Maui properties owned by Hawaii Omori Corp., has been sold to a California family real estate firm for an undisclosed price.
Gianulias Investments, headed by Gus and Julie Gianulias, has owned property in the Sacramento and Northern California area for about 50 years, including several shopping centers and malls similar to Lahaina Cannery, said Jon Gianulias, first vice president at CB Richard Ellis in Sacramento and the son of Gus Gianulias.
"This is our first expansion into Hawaii," Gianulias said, adding that the family began eyeing Maui properties during their many recreational trips to Hawaii.
"Gus and Julie have been going there multiple times a year since the late 1980s," he said. "They love the time they spend vacationing there. It's easily one of the top destination spots. The people are very friendly and its beaches, sunsets and food are all world class."
Finding the West Maui property in a strong economy supported by low-interest rates was a real boon for the family, Gianulias said.
"This is a real positive opportunity for us and we are very fortunate to have been picked as a buyer," he said.
The mall was a major piece of Hawaii Omori's $100 million plus real estate portfolio. Hawaii Omori built the 120,000-square-foot Lahaina Cannery Mall in 1986 for $16 million. The mall is anchored by Longs Drug Store and Safeway.
The Gianulias family also acquired about 40,000 to 50,000 square feet of undeveloped parcels in the purchase. The company is looking to expand the complex by bringing in more restaurants and a good mix of regional, local and mainland businesses, Gianulias said.
The family also plans to keep the free entertainment and hula shows that were started by the Omori family and have become a mall tradition, he said.
Other properties that Hawaii Omori is selling include the West Maui Center, an office and warehouse complex in Lahaina that Hawaii Omori built in 1977 for $1 million. In addition to the commercial properties in its portfolio, the Omori Cop. is also selling six ocean-front homes in Lahaina.
A Hawaii Omori official said 45-year-low interest rates, combined with Maui's popularity, contributed to the decision to empty the portfolio.
"We decided that it was the right time to sell," said Susumi "Rick" Nitadori, Omori's executive vice president.
CB Richard Ellis, which is managing and preparing the properties for sale, began offering the properties in August and has said they expect more sales to close this month.
"This is a very unique opportunity as these are valuable Lahaina locations in a market that continues to attract a high level of interest from local and off-shore investors," said CB Richard Ellis Senior Vice President Scott Gomes, who is the team director for the project. "We're seeing increased interest in Maui, both within Hawaii and internationally."
CB Richard Ellis Hawaii will continue to manage and lease the Lahaina Cannery properties.