Faris Lee Investments Completes $22.475 Million Sale of Shopping Center in Waikoloa Village, Hawaii

IRVINE, Calif. – Faris Lee Investments, a leading retail advisory and investment sales firm, has completed the $22,475,000 sale of Waikoloa Highland Center, a grocery-anchored shopping center located in Waikoloa Village on the Big Island of Hawaii. The center totals 73,524 square feet and includes grocery store anchor tenant, Waikoloa Village Market, as well as Chevron, Subway, and First Hawaiian Bank.
Built in 1990 and situated on 6.43 acres, Waikoloa Highlands Center is located at 68-1845 Waikoloa Road – the main road connecting Waikoloa to Hilo – at the key intersection of Waikoloa Road and Paniolo Ave., and is the only full-service grocery-anchored center in the entire trade area of Waikoloa Village within a 17-mile radius. The property was 75 percent occupied at the close of escrow.
According to Faris Lee, two other national brokerage firms had listed the property previously and were unsuccessful at generating any real offer activity.
Based on the firm’s marketing strategy and history of successfully selling several Hawaii retail centers, Donald MacLellan, Richard Chichester, and Thomas Chichester of Faris Lee Investments were selected to market the property on behalf of the seller, Beverly Hills-based 3D Investments. The firm’s most recent Hawaii transactions included two grocery/drug store anchored centers: Lahaina Gateway (Maui) for a sale price of $32 million; and Wainae Town Center (Oahu) for a sale price of $30.1 million, as well as Coconut Marketplace (Kauai) for $8.2 million.
“What others saw as drawbacks, we saw as opportunity in this property … and we marketed it that way,” commented MacLellan, senior managing partner with Faris Lee Investments. “Although the grocery tenant wasn’t a national name brand, it had been at the property for more than 20 years, had expanded several times, and has had exceptional annual sales. Upon site tours and market analysis, we saw the 25 percent vacancy as a way to add value through lease-up of the additional space and we advised the seller on securing a local leasing team that was active in the market.”
Faris Lee garnered several strong offers on the property and advised the seller on the selection of a Wisconsin-based private investor also represented by the Faris Lee marketing team.
“The Hawaii retail environment is very different from other mainland markets,” said Richard Chichester, president and CEO of Faris Lee Investments. “Smaller, local chain stores and “mom and pop” type retailers are prevalent and welcomed by the residents and visitors there as they speak directly to the local culture and its needs. Because of Faris Lee’s street-level brokerage expertise and valuation knowledge on this unique market, we were able to successfully price, market, garner several offers, and secure a qualified buyer in a short amount of time.”
As Faris Lee highlighted in its marketing effort, the buyer was also attracted to the fact that Waikoloa Highland Center is located in a high-barrier to entry market as historically, Hawaii commercial development can take up to 10 years from initial design to full build out. Secondly, the property was the only full service grocery store that serviced the entire Waikoloa trade area as well as the surrounding resorts and Kohala Coast.  And finally, the population growth has been rapid in Waikoloa Village. From 2000-2013 the population increased 216 percent.
About Faris Lee Investments: Faris Lee Investments is a leading retail advisory and investment sales firm.  The company’s high-level retail investment advisors and sophisticated financing experts develop forward-thinking strategies for all retail acquisitions and dispositions and guide clients through complex transactions. Cumulatively, Faris Lee’s leadership has been involved in more than $20 billion of transactions. Faris Lee's senior advisors are skilled in disposition and acquisition strategies, asset positioning and valuation, marketing, debt and equity structuring, strategic workout and REO solutions and execution. For more information, visit www.farislee.com.


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