MAUI, HI-Festival Retail Fund 1 has acquired the Fairway Shopsat Kaanapali and the Napili Plaza in West Maui for a combined $28.5million, according to Mark Schurgin, president of Los Angeles-basedFestival Cos. The Shops at Kaanapali is a 35,000-sf neighborhoodcenter that was built in 2001 and is located along HonoapiilaniHighway in the middle of the Kaanapali Resort. The 45,000-sf NapiliPlaza community center was built in 1991 and is also located onHonoapiilani Highway in the city of Napilli, between Maui's Kapaluaand Kaanapali resorts.

The two properties, which are the fourth and fifth acquired bythe Festival Retail Fund 1 this year, benefit from outstandinglocations that are highly visible along West Maui's primarythoroughfare, Schurgin points out. The company acquired the twocenters from Honolulu-based A&B Properties Inc., the realestate subsidiary of publicly held Alexander & Baldwin Inc.

Festival Retail Fund 1, which was launched on Jan. 1, invests inground-up and existing retail properties in major metropolitancities throughout the US and plans to invest up to $800 million bythe end of 2009. It is managed by principals Mark Schurgin andRosalind Schurgin and thus far this year has acquired properties inCalifornia and Hawaii. The equity for the fund is being provided byGoldman Sachs.