Coconut Grove Marketplace, an oceanfront, 49.5k sf retail center on the Big Island of Hawaii, has sold in a $21.8 mil ($440/sf) transaction. The property, located at 75-5815 Ali’i Drive within the retail hub of Kailua-Kona, was purchased by J.H. Real Estate Partners.
The center features ocean views, with an open layout ideal for outdoor Hawaiian-themed entertainment. Other amenities include an oceanfront volleyball court offering the local community a recreational venue to enjoy. Some of the property’s retailers include ABC Stores, Humpy’s Alehouse, Lava Java, Outback Steakhouse and Kona Gear, to name a few.
The seller, Hudson America L.P., a Dallas-based equity fund, acquired Coconut Grove as part of a large portfolio transaction a few years back. Since that time, it has embarked on upgrading and attracting the top local restaurant operators, including Lava Java and Foster’s Kitchen, significantly increasing customer traffic.
The center features a plantation theme with craftsman-like wood finish throughout the buildings. Coconut Grove offers the new owner with a strong opportunity to add value and realize long-term appreciation by continuing to upgrade the tenant mix and further establish the center’s appeal as a dominant community destination.
Situated on 5.5 acres of land, Coconut Grove boasts a rare oceanfront retail location between the area’s two main transportation corridors and is surrounded by more than 1,400 residential/hospitality units. It is also near the world-renowned Ironman Championships held annually in Kailua-Kona.
Donald MacLellan and Rick Chichester with Faris Lee Investments represented both parties in the transaction.