REO: Grocery Anchored Hawaii Shopping Center

Highlights:

• Value-Add Grocery Anchored Retail Center. The Property is currently 80% leased with 7.79 years of weighted average lease term and anchored by Safeway, one of the top grocers in the United States. Safeway’s lease runs through 2036 with one more 11.5-year renewal option at a fixed rent.
• Top Performing Grocery Location. Safeway, now a subsidiary of Albertsons, is one of the largest grocers in the United States and a major grocer in Hawaii. With tenancy since 1981 as the Property’s original anchor tenant, Safeway has demonstrated both commitment to the Center and high productivity with significant annual sales.
• Irreplaceable Location & Limited Retail Supply. The Hawaii Kai Shopping Center is built within the historical Kuapa Pond, which was originally marshland that was dredged in the 1950s to create the Hawaii Kai neighborhood. As such, the Center is unique in that it is one of only a handful of retail centers in the Hawaii Kai neighborhood, an affluent community boasting a median income of over $150,000 within a one-mile radius of the Property.
• Extremely Attractive Going-In Yield. With approximately 8 years of WALT, investors will benefit from a very attractive going-in yield with stable cash flows well into the future that will result in significant returns from contractual cash flow.
• Significant Upside Potential from Ground Lease Extension. There is significant upside potential for an investor to negotiate a ground lease extension with the current ground lessor, the Trustees of the Estate of Bernice Pauahi Biship dba Kamehameha Schools.
• Fully Depreciable Asset. Investors will benefit from taking 100% depreciation due to the leasehold interest of the acquisition.

Description:

Online Auction May 19-21st

https://rimarketplace.com/auction/2344/reo-grocery-anchored-hawaii-shopping-center?utm_source=brevitas&utm_medium=listing&utm_campaign=external&utm_content=retail_2344

Colliers and RealINSIGHT Marketplace are pleased to present the opportunity to acquire the leasehold interest in the Hawaii Kai Shopping Center (the “Property” or the “Center”), a 144,793 square foot grocery-anchored shopping center in the Hawaii Kai neighborhood of Honolulu, Hawaii.

The Property is currently 80% leased and anchored by one of the country’s top grocers, Safeway, through 2036. Safeway has shown exceptional commitment to the Property starting over 40 years ago as the Center’s original anchor tenant. In 2022, Safeway, again, displayed its commitment by exercising its second 15-year renewal option to 2036. The Property’s other tenants complement Safeway and offer an investor a mix of national and regional tenants, including CVS, popular local restaurants, and other daily needs.

The Center is unique since it is one of only a handful of retail centers in the Hawaii Kai neighborhood. Developed by Henry J. Kaiser in the 1960s, the Hawaii Kai neighborhood is one of the most affluent communities within the Honolulu metro area--the highest populated area of Hawaii.

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