10-story Kalakaua building up for sale

The ANA Kalakaua property in Waikiki is being marketed by CB Richard Ellis

Another Waikiki office building has hit the market.

ANA Kalakaua, a 10-story building at 2155 Kalakaua Ave., is being shopped around by CB Richard Ellis Hawaii, with no list price specified.

CBRE Hawaii declined to comment, but brochures marketing the 152,000-square-foot, multi-colored building have been distributed to potential buyers here and on the mainland.

CBRE Hawaii earlier this month listed the Waikiki Trade Center on the market for $42 million, after announcing a multimillion-dollar upgrade to the property.

ANA Kalakaua, which is owned by ANA Real Estate Hawaii Inc., is being marketed as a "Class A" office building near the heart of Waikiki. The company is an affiliate of All Nippon Airways.

The ground floor of ANA Kalakaua offers retail space and has long been anchored by Planet Hollywood and Wyland Galleries. Office tenants include JTB Hawaii, Starwood and Aston.

The office and retail building, built in the late 1970s and remodeled in 1989, sits on leasehold land owned by the Barbara Poovey Trust and Kapuahelani, according to property records.

Though Waikiki has historically had the highest office vacancy rates on the island, increased demand for office space has trickled to the tourist district.

Oahu's overall office vacancy rate fell to 8.6 percent at the end of last year, according to a year-end report by commercial real estate firm Colliers Monroe Friedlander.

In Waikiki, the vacancy at year-end 2005 was recorded at 13.1 percent, according to Colliers, with average rents between $1.36 to $1.55.

Jamie Brown, president of Hawaii Commercial Real Estate, which has handled leasing for ANA Kalakaua since 2004, says activity has picked up over the years, and the building now has a vacancy rate of 1.4 percent.

Brown said new tenants that signed leases last year include Shell Vacations Club Hawaii, Irongate's sales office for the planned Trump Tower in Waikiki and Modern Luxury magazines.

The gross asking rent at ANA Kalakaua is between $2.60 to $3 per square foot per month.