Amfac gives up
Waipahu land
to settle suitCity Bank gets the property
as part of a foreclosure settlement
City Bank has acquired 15 acres of prime Waipahu commercial property from Amfac Property Development Corp. as part of a foreclosure proceeding against the remnant of one Hawaii's "Big Five" companies launched in the 19th century.
As one of the "Big Five," Amfac started out in 1849 as H. Hackfeld & Co., a German-immigrant sugar business, which changed its name to American Factors because of the anti-German sentiment generated by World War I. Much of Amfac's life span has been based on sugar plantations and land development. But the company has seen increasing losses in recent years.
City Bank sued Amfac in September for failing to make payments on land located within the Old Mill Site, adjacent to the popular Mill Town Center industrial park owned by Alexander & Baldwin Inc., said Wayne Miyao, spokesman for City Bank. The land is also near the Leeward YMCA and the Filipino Community Center, he said.
Tamara Edwards, president of Amfac Land Co., confirmed the transfer of land, but declined to comment on the transaction.
As part of court proceedings, the land reverted back to City Back on Dec. 31, Miyao said.
"We are currently conducting an environmental study on the land and plan to put the land up for sale at the end of the study," Miyao said.
As Waipahu continues to develop, the land is likely to become a hot real estate commodity, said Stephany Sofos, retail analyst.
Oahu's industrial real estate market is tight with most of the desirable inventory leased and the remainder obsolete by mainland standards, she said.
"Sixty-five percent of all the industrial real estate was built prior to 1970, so any new stuff is exciting," Sofos said, adding that a healthy economy and low-interest rates are continuing to add muscle to a strong market.
Many businesses are constructing their own buildings in Waipahu and other industrial parks for lack of finding the right space, she said.
"It's become more affordable to own your own property rather than to rent it," she said. "And, Waipahu is becoming more attractive as it goes through a revitalization."
Mill Town Center has completely sold out of its first phase of development and has sold about half the space in its next development.
"The first phase just sizzled," Sofos said. "And, everything's popping now -- all cylinders are ago."
As Waipahu, an ancillary community to the more upscale Waikele, continues to develop, it will need to provide more office, industrial and recreational space to feed the market, Sofos said.
"It's a growing community and that's creating a synergy and a critical mass," she said. "You can't buy anything on Fort Weaver Road for under $300,000, and that's just unbelievable."
