Faris Lee Investments brokered the sale of Kahana Gateway Shopping Center, totaling 60,000 square feet on the island of Maui in Hawaii.
The value of the transaction was approximately $26.8 million.
Kahana Partners LLC, which consists of a group of California-based investors, purchased the property from Santa Ana, Calif.-based Triple Net Properties.
David Lee, chairman of Faris Lee Investments, observed that California buyers, attracted to the tropical allure and growing popularity of the Hawaiian Islands, are offering some of the most aggressive and highest prices for properties there.
“The buyer for Kahana Gateway not only offered top dollar, but the deal also required over 50 percent down payment. It is extremely challenging to find a buyer that can put down half the price of the property on a transaction as large as this one,” Lee said. “Additionally, there was an above-market interest rate on the first trust deed, which made it an even more difficult transaction for the buyer.”
Built in 1990 with a tropical plantation design theme, the property is located on the northwest corner of Honoapiillani Highway and Hoohui Road in the district of Kahana on Maui.
The center is situated on 3.95 acres at 4465 Honoapiillani Highway. The center was 96 percent leased at the time of sale by national and local tenants, including Outback Steakhouse, Roy’s Kahana Bar and Grill, Maui Dive Shop and Whaler’s General Store.
Irvine, Calif.-based Faris Lee Investments is an advisory and brokerage firm specializing in retail real estate.
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