TNP Strategic Retail Trust Sells Waianae Mall, Acquires Lahaina Gateway
- Oct 29, 2012
TNP Strategic Retail Trust Inc. of Irvine, Calif., has entered into an agreement to sell the Waianae Mall Shopping Center in Leeward Oahu to an unnamed buyer. The company acquired the property in June 2010 for $25.7 million.
Built in 1981, the retail center comprises 11 buildings totaling 170,275 rentable square feet. It is anchored by Longs Drugs and City Mill Superhardware, and includes a mix of national and regional tenants, such as Burger King, Fantastic Sams, Goodyear Tire, the state of Hawaii, American Savings Bank, Waianae District Health and Aaron Rents.
“The property has performed well and has met our strategic goals. We have decided to sell the property to realize a significant return on investment, with the proceeds to be redeployed into new opportunities,” Thompson National Properties senior vice president of acquisitions Stephen Corea commented in a statement. “TNP continues to see attractive opportunities in the market in which to reinvest the proceeds from the sale.”
TNP Strategic Retail Trust also announced it is purchasing the leasehold interest in the Lahaina Gateway shopping center on Maui for an undisclosed amount. In September 2011, Central Pacific Bank acquired the 11-acre property out of foreclosure. The sale is expected to close this month.
Built in 2008, Lahaina Gateway has approximately 137,000 square feet of leasable area and a vacancy rate of about 20 percent. The shopping center is anchored by Foodland Farms Market, Barnes & Noble and Office Max.
“The acquisition of Lahaina Gateway by the company is consistent with our strategy of acquiring a mix of stabilized and value-added assets. The property serves a strong tourism-based demographic while also serving the needs of the community,” said Corea.
Marketwide, Hawaii’s retail sector ended the second quarter at a 5.9 percent vacancy rate, an increase from the first quarter’s 5.5 percent. According to a report released by CBRE Group, Maui and Kauai registered the highest vacancies, at 11.4 and 17.3 percent, respectively.
Photo credits: hawaii.gov
Chart courtesy of CBRE Group Inc.