HONOLULU, HI—Faris Lee Investments, hascompleted the $22.5 sale of Waikoloa HighlandCenter, a grocery-anchored shopping center located inWaikoloa Village on the Big Island of Hawaii.

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The center totals 73,524 square feet and includes grocery storeanchor tenant, Waikoloa Village Market, as well asChevron, Subway, and First HawaiianBank.

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Built in 1990 and situated on 6.43acres, Waikoloa Highlands Center is located at 68-1845Waikoloa Road – the main road connecting Waikoloa to Hilo – at thekey intersection of Waikoloa Road and Paniolo Ave., and is the onlyfull-service grocery-anchored center in the entire trade area ofWaikoloa Village within a 17-mile radius. The property was75% occupied at the close of escrow.

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According to Faris Lee, two other national brokerage firms hadlisted the property previously and were unsuccessful at generatingany real offer activity.

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Based on the firm's marketing strategy and history ofsuccessfully selling several Hawaii retail centers, DonaldMacLellan, Richard Chichester, and ThomasChichester of Faris Lee Investments were selected tomarket the property on behalf of the seller, Beverly Hills-based3D Investments. The firm's most recent Hawaiitransactions included two grocery/drug store anchored centers:Lahaina Gateway (Maui) for a sale price of $32million; and Wainae Town Center (Oahu) for a saleprice of $30.1 million, as well as CoconutMarketplace (Kauai) for $8.2 million.

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“What others saw as drawbacks, we saw as opportunity in thisproperty … and we marketed it that way,” commented MacLellan,senior managing partner with Faris Lee Investments, a leadingretail advisory and investment sales firm. “Although the grocerytenant wasn't a national name brand, it had been at the propertyfor more than 20 years, had expanded several times, and has hadexceptional annual sales. Upon site tours and market analysis, wesaw the 25% vacancy as a way to add value through lease-up of theadditional space and we advised the seller on securing a localleasing team that was active in the market.”

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Faris Lee garnered several strong offers on the property andadvised the seller on the selection of a Wisconsin-basedprivate investor also represented by the Faris Leemarketing team.

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“The Hawaii retail environment is very different from othermainland markets,” said Richard Chichester,president and CEO of Faris Lee Investments. “Smaller, local chainstores and mom and pop type retailers are prevalent and welcomed bythe residents and visitors there as they speak directly to thelocal culture and its needs. Because of Faris Lee's street-levelbrokerage 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.”

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As Faris Lee highlighted in its marketing effort, the buyer wasalso attracted to the fact that Waikoloa Highland Center is locatedin a high-barrier to entry market as historically, Hawaiicommercial development can take up to 10 years from initial designto full build out. Secondly, the property was the only full servicegrocery store that serviced the entire Waikoloa tradearea as well as the surrounding resorts and KohalaCoast. And finally, the population growth has beenrapid in Waikoloa Village. From 2000-2013 thepopulation increased 216%.

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David Phillips

David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.