Waikele Center owner
buys Waikiki retail property

CORRECTION Thursday, April 7, 2005 » American Assets Inc. acquired Waikele Center last year from Jamestown Management Corp. of Atlanta. A story on Page C1 Tuesday incorrectly said Chelsea Property Group was the seller. The Honolulu Star-Bulletin strives to make its news report fair and accurate. If you have a question or comment about news coverage, call Editor Frank Bridgewater at 529-4791 or email him at corrections@starbulletin.com.

The San Diego-based owner of the Waikele Center paid about $28 million for the Shops at 2150 Kalakaua, in the latest deal to hit the Waikiki retail scene.

American Assets Inc. completed its purchase of the 12,000-square-foot property on Friday from a local hui that included the Shidler Group, Watumull Properties and local developer Bill Mills.

The price was not disclosed but people familiar with the deal said the buyer paid about $28 million. The local sellers acquired 2150 Kalakaua and several nearby properties in September 2003 for $10.6 million.

"We've achieved our objectives with the project," said Larry Taff, managing partner of the Shidler Group. "The retail market in Waikiki is very strong now and it is a very opportune time for our group to sell."

Taff said the properties were entirely vacant several years ago and that the local partners have conducted extensive renovation since then. Tenants now include Diesel, Oakley, Puma and Whaler's General Store.

The Shops at 2150 Kalakaua is in the heart of Waikiki near Niketown and the upscale 2100 Kalakaua retail complex. In December, New York-based Metropole Realty Advisors Inc. and Heller Properties paid $156 million for the 2100 Kalakaua Ave. property.

American Assets, a real estate investment trust founded in 1967, owns about 3.1 million square feet of retail space mostly on the West Coast. Last September, the company paid $210 million to acquire the 522,000-square-foot Waikele Center in Central Oahu from New Jersey-based Chelsea Property Group Inc.

The Shidler Group owns commercial properties throughout the mainland and Hawaii. Watumull Properties and Bill Mills Development Co. are major local landowners and developers.

Shidler and Mills teamed up in 2001 to acquire the DFS Galleria building in Waikiki for nearly $100 million from Japan-based seller Nippon Shinpan Co. Mills has since acquired Shidler's interest in the Galleria building.