A&B Properties to Acquire Kahala Properties from Kawamoto

In an off-market transaction, A&B Properties, the real estate subsidiary of Alexander & Baldwin, has paid approximately $98 million to acquire a portfolio of 31 residential properties from Japanese real estate investor Genshiro Kawamoto. Twenty-seven of the properties are located on Kahala Avenue, Honolulu's premier residential address, which spans along the ocean from Diamond Head to Waialae Country Club, home of the Sony Open, and the world-famous Kahala Hotel & Resort.

By Adriana Pop, Associate Editor

In an off-market transaction, A&B Properties, the real estate subsidiary of Alexander & Baldwin, has paid approximately $98 million to acquire a portfolio of 31 residential properties from Japanese real estate investor Genshiro Kawamoto. Twenty-seven of the properties are located on Kahala Avenue, Honolulu’s premier residential address, which spans the ocean from Diamond Head to Waialae Country Club, home of the Sony Open, and the world-famous Kahala Hotel & Resort.

According to the Pacific Business News, area residents, who had complained for years about the state of decay of Kawamoto’s Kahala estates, have been delighted to hear about the sale. A&B now plans to refurbish the properties and put them back on the market.

Besides the Kahala estates, which encompass about 13.7 acres, the portfolio includes two residential lots and a preservation-zoned parcel in Windward Oahu, as well as a 146-acre agricultural-zoned parcel in Kihei on Maui.

The Kahala residential properties include eight oceanfront lots (6.5 acres); one oceanfront home/lot (0.8 acres); five non-oceanfront lots (1.7 acres) and one home (0.2 acres) located on the makai, or ocean, side of Kahala Avenue; and six lots (2.4 acres) and six homes (2.1 acres) located on the mauka, or mountain, side of Kahala Avenue.

“Through this transaction, we have acquired a significant position in Kahala real estate — nearly 90 percent of the current inventory on Kahala Avenue, a well-established, world-class residential Honolulu community for local and offshore homeowners,” Michael G. Wright, executive vice president of A&B Properties, said in a news release. “We will be focused on cleaning up these properties and anticipate a full recovery in property values. This acquisition is truly a once-in-a-lifetime opportunity, and we are gratified to see our efforts come to fruition.”

The land-only component of the tax assessed value of the 31 properties acquired totals $117.6 million. Sales will start immediately and continue over a projected three- to five-year timeframe.

Photo credits: Tina Yuen via bizjournals.com