Michelle Schierberl of the Newport Beach office of Grubb & Ellis, who brokered the deal, tells GlobeSt.com that the sale was part of Kamehameha Schools ongoing strategy of restructuring its portfolio, which includes reallocating funds from the sale of real estate holdings to other asset classes.

The buyer was Sanderson J. Ray-Desert Springs Partners LLP, an Irvine-based commercial real estate owner and developer that plans to build Phase II of the Desert Springs Marketplace on the nearly 13 acres next to the existing shopping center.

The existing center was built in the early 1990s, with Kamehameha Schools originally entering the deal only as a financial partner, but Kamehameha eventually took over the site, became the developer and had owned it ever since. The existing center is anchored by Ralph's Grocery, Rite Aid and Morton's of Chicago, along with restaurants and other in-line tenants. The property, which was 100% occupied at the time of the sale, is located directly across from the Marriott Desert Springs Resort & Spa as well as timeshares and the Desert Willows golf course, owned by the city. The area is slated also to have a convention center that is in the planning stages. Schierberl says the new owner is expected to begin construction on Phase II of the development next year.