Investors buy Lahaina
shopping center

Mariner's Alley, a resort shopping center in Lahaina, Maui, has been sold together with a nearby parking lot on Lahainaluna Road for $16.4 million to a group of investors headed by Honolulu-based real estate firm Avalon Group LLC.

The fee-simple acquisition of the 14,450-square-foot center from Hawaii investors Wiawatha Corp. and 3B Investments LLC marks Avalon Group's first venture into Maui.

Mariner's Alley, which Avalon Chief Executive Christine Camp Friedman described as "ground zero for Lahaina high-end retail," occupies what is known as the "golden block" of Front Street in Lahaina. The center, with a gross leasable area of about 12,000 square feet, is anchored by Moose McGillycuddys, Lassen's Art Gallery, and Higgins Hart International Art Galleries. The fully occupied center also includes Cafe Sauvage and R&C Jewelry.

"This acquisition met our criteria for implementing our investment strategy of securing properties generating higher-than-market-cap rates, with upsides for development," Friedman said. "We plan to hold on to the shopping center for the long term as it is generating a significantly enhanced, positive-leveraged return."

The 9,799-square-foot parking lot is being evaluated for redevelopment in the near term, Friedman said.