Honolulu’s tight office market posted another eight-digit property sale when a Waikiki office building fetched $30 million.
Yesterday, California-based real estate investment firm Shidler Group announced its acquisition of the 151,842 sq. ft. ANA Kalakua Center property. The property, which is located in Honolulu’s Waikiki district, is only 2% vacant. Tenants in the complex include restaurant Planet Hollywood plus hoteliers Aston Hotels & Resorts and Starwood Hotels. It was previously owned by a Japanese airline.
"As the largest owner of office buildings in Honolulu, we continue to add high-quality, well-located properties to our portfolio," says Shidler Group partner Matt Root. "We believe in the long-term health of the Honolulu market, which currently boasts the nation's lowest office vacancy rate of 7%."
With this sale, the property falls out of Japanese hands for the first time in 26 years. The property was built in 1980 as Mitsukoshi Hawaii, a multi-tenant retail building housing the Hawaiian branch of Japan's Mitsukoshi department store. The building was sold to an affiliate of the owner in 1989, at which time it was renovated and converted to its current use as a mixed-use office and retail center.