Hualalai at Historic Ka'upulehu is one of the most exclusivemaster-planned residential resort communities in the world. Located15 minutes north of Kona International Airport on the Big Island,the property includes the 234-room Four Seasons Resort Hualalai atHistoric Ka'upulehu, a partially developed 300-unit residentialcommunity, two golf courses. The hotel opened in 1994. Its averagedaily rate and average occupancy are believed to be upward of $750and 90%, respectively, putting it atop the Hawaii hotel market andamong the best in the US.

Kajima is a developer that tends to sell once properties are ator near completion. With the residential portion nearing completionand unsolicited offers pouring in, Kajima figured it time to sell,says Arthur Buser, managing director for Jones Lang LaSalle Hotels,which arranged the transaction.Citing confidentiality agreements,Buser declined to confirm the sale price, the performance figuresor the amount of debt arranged for the acquisition, which at 75%leverage would be about $412 million. Buser would say the salerepresents the second largest hotel deal in US history, behind the$675-million sale of the Plaza Hotel in New York in 2004, and thatthe property's ADR and occupancy are "the highest in Hawaii and oneof the highest in the US."

Looking ahead, Buser says there is room to add structures to theproperty, whether they are hotel rooms or private residences."There are a number of acres left to develop," Buser says. "Thehotel has flourished under the current configuration so nobodyshould expect they will add a large tower but there is absolutelydevelopment potential."