Retail spaces across state for sale

A real estate group of seven Hawaii retail centers on Oahu, Maui, Kauai and the Big Island has been put up for sale.

On the block Retail properties for sale by Diversified Equity Investment Corp. » Crossroads Shopping Center, Kailua-Kona, Big Island: 74,846 square feet » Kauai Resort Village, Kapaa, Kauai: 115,001 s.f. » Safeway at Windward Town & Country Plaza, Kailua, Oahu: 53,503 s.f. » Shops at Windward Town & Country Plaza, Kailua, Oahu: 33,639 s.f. » Shops at Halekuai Center in Kapolei, Oahu: 29,255 s.f. » Kahana Gateway Resort Retail Center, Lahaina, Maui: 58,774 s.f. » Kahana Gateway Professional Office Center, Lahaina, Maui: 21,231 s.f. Source: CB Richard Ellis, Faris Lee Investments

The properties, with a combined total of 386,000 square feet, is being marketed by CB Richard Ellis in Honolulu and California-based Faris Lee Investments, which expect to sell the portfolio at below the estimated replacement cost of $500 million.

The seller is a group of California investors led by Diversified Equity Investment Corp., which has accumulated the assets over the past decade. The brokers expect to take multiple bids on what is known as the Hawaiian Collection portfolio.

More than 25 qualified prospective buyers, including large private and institutional investors as well as foreign investors, have expressed interest in the portfolio, said Wendell Brooks III, senior vice president of CB Richard Ellis.

"The beauty of this portfolio is its size, diversity and its tenant strength and the unique opportunity to be a major player in the Hawaii real estate market very quickly in a market that has taken years and years for other players to develop their asset base," Brooks said.

He added that the opportunity to step into Hawaii's highly competitive retail real estate market at this level is rare given the limited supply of properties and significant barriers to entry, which include high construction and land costs.

"The Hawaiian Collection gives an investor an extremely rare opportunity to immediately become one of the largest retail owners in Hawaii," said Richard Walter, president of Faris Lee Investments.