Grocery-Anchored Retail Center for Sale in Hawaii

Thursday, April 27, 2017

Update: HFF announced the sale and acquisition financing on November 28, 2017. For a listing of current commercial real estate properties on the market, please click here.

Holliday Fenoglio Fowler, L.P. (HFF) is exclusively marketing for sale Kauai Village, a 109,466-square-foot, grocery-anchored retail center located in Kapaa, the largest city in Kauai. The retail investment sale listing is 81 percent leased by an assorted and complementary mix of national and regional retailers that offers consumers a complete shopping experience. The property is proximate to Kapaa’s residential core and is situated along one of the most heavily trafficked sections of Kauai, exposing the property to nearly 30,000 vehicles on a daily basis.

In addition to the grocery-anchor Safeway, the commercial property for sale is home to a variety of tenants, including Ross Dress for Less, Starbucks, ABC Stores, Panda Express, Subway, The UPS Store, Fun Factory, State Farm Insurance, Coconut’s Fish Café, Pho Kapaa, Mahina Maui and Re/Max. This tenant mix is well suited to service both the local and the tourist demographics. Situated on 8.23 acres at 4-831 Kuhio Highway, Kauai Village is adjacent to several resorts and timeshares that drive an increase in traffic, in addition to the surrounding local population that frequents the property.

Hawaii tourism is booming, establishing new records in 2016 with more than 220,000 visitors per day and more than 8.9 million visitors annually. Visitor expenditures amounted to $15.6 billion, a 4.2 percent increase over 2015. With an adjacent location to several tourist accommodations, the property will continue to experience increased visitors and demand for its retailers.

Hawaii Retail Center for Sale Investment Highlights

  • Grocery-Anchored Shopping Center with Strong Tenants:  The property is anchored by Safeway, the second largest supermarket chain in North America. The grocery anchor attracts consistent “daily needs” traffic to the center. Additionally, the brand new Ross Dress for Less provides a significant regional draw to the property, complementing the strong mix of national tenants at Kauai Village.
  • Top-Tier Sales Volume, Long-Term Grocery-Anchor Lease:  With a long-term Safeway lease (October 2029) and multiple extension options, new ownership is provided with income security and downside protection. Safeway’s top-tier sales at almost $900 per square foot provides ownership with an ideal health ratio and showcases the store’s long-term demand in a very desirable demographic.
  • Stable Cash Flow with Immediate and Long-Term Upside:  Currently 81 percent leased to first-tier tenants such as Safeway, Ross Dress for Less, ABC Stores and Starbucks, the offering provides investors stable cash flows and a secure investment. New ownership will also have the opportunity to explore potential short-term and long-term value enhancement strategies, including anchor expansion, repositioning of inline stores or potential retail pad development. This will provide an investor the ability to add additional GLA creating a unique value enhancement opportunity.
  • Unencumbered Asset and Fee-Simple Ownership:  Kauai Village is a fee-simple opportunity and not encumbered by any ground lease, unlike most commercial opportunities in Hawaii. In addition, the property is being delivered free and clear of existing financing, which provides investors the opportunity to take advantage of historically low interest rates and enhanced-leveraged returns.

For more information about Kauai Village or other retail properties for sale, please contact Gleb Lvovich in HFF’s Orange County office. For more of HFF’s real estate investment sale listings, click here to be redirected to HFF's property search page.

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