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KAPAA, HI-A group of investors assembled by Diversified EquityInvestment Corp. has acquired the 110,000-sf Kauai Village retailcenter in a $40 million deal that includes funds to repair andremodel the property. Diversified, a California and Hawaii-basedinvestment company that is one of the largest shopping centerowners in Hawaii, was represented by chairman David Lee andpresident Richard Walter of Irvine-based Faris Lee Investments.

The Kauai Village center, at 4-831 Kuhio Highway, was built in1990 and was about 85% occupied at the time of the sale. Lee saysthe new ownership's remodeling plans are aimed at creating a"resort-style shopping center" to capitalize on both the demand ofthe local Kauai residents and the increasing tourist base. Thebuyers acquired the property from Irvine-based Passco, which wasrepresented by the Reza Investment Group of Irvine.