HONOLULU, HI—As GlobeSt.com previously reported, Atalanta Realty Investments, a Southern California-based, real estate investment firm founded in 2013 by managing principal Jennifer N. Taylor, has re-entered the market with the acquisition of two class B, office assets in Downtown Honolulu. In an update to that story, Taylor tells GlobeSt.com that the Hawaii is one of the company's targeted priority markets.
“We have previous history here,” she tells GlobeSt.com. “It feels good to return to this market and work with our long standing relationships and with the community.”
With that said, Taylor notes that “we also have the good fortune of leveraging our deep network to access capital sources that make this investment possible.”
Arroyo Realty Partners, had purchased, owned and managed Haseko Center and Ocean View Center before divesting of them along with other repositioned assets in 2007, just prior to the real estate bust, as GlobeSt.com previously reported.
Taylor notes that Atalanta is planning to upgrade common areas and revamp management to include some innovative and enhanced tenant services. Besides investment management expertise, she has a strong background in asset management, having served in key portfolio management roles for major commercial real estate firms earlier in her career.
“With these planned improvements implemented, we will be able to aggressively boost occupancy quickly,” she says. “We will increase the value of these properties and stabilize ROI over the next few years.”
Taylor tells GlobeSt.com that Atalanta is somewhat of a unique hybrid in that “we have the conventional experience of doing business on the mainland, yet we understand the nuances and cultural differences of the local Hawaii market. We are poised to take advantage of more opportunities and certainly attribute that to being very nimble in our approach and our ability to execute swiftly.”
Robin Dean, a principal with the firm, says that “We are very familiar with this community, these buildings and many of the tenants, who have welcomed us back. Long-term tenants include state agencies and many prominent law firms.”
Atalanta is a women- and minority-owned business, which is very unique in the investment and commercial real estate industries. The firm embraces a “triple-bottom line” philosophy of doing well by doing good. The firm specializes in value add investments in markets with rapidly changing demographics.
“These assets have significant potential for capital appreciation and increased cash flow,” Dean continues, pointing out that the purchase price was extremely competitive and well below replacement cost.
“This was a timely buy, and timing is everything in this business,” adds Aden Kun, principal of Atalanta, explaining that the properties are located in a highly active Honolulu submarket on the southeast perimeter of the CBD.
Market rents in the vicinity are projected to grow up to 6% by 2016. But even with expected rent growth, Atalanta contends that rents would still not be high enough to justify more office construction in this submarket, thereby keeping office supply low.
Leasing assignment was awarded to Commercial Asset Advisors and CBRE retained as the property manager.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
