Thank you for sharing!

Your article was successfully shared with the contacts you provided.

KAPOLEI, HI-Locally based KDI Investments Inc. has acquired a 189,000-square-foot cold storage freezer food distribution building from Tower Plaza Associates LP for $19.2 million, according to Colliers International brokers who negotiated the sale. The property, at 91-315 Hanua St. in Kapolei on the island of Oahu, is the largest such facility in Hawaii, according to the Colliers brokers, who included senior vice president Fred Cordova in the Downtown L.A. office of Colliers along with senior vice president Mark Bratton and executive vice president Scott Mitchell at Colliers Monroe Friedlander in Hawaii.

The Colliers team represented the seller, which had acquired the property in 2006 from a related company of Foodland Super Market Ltd., Hawaii’s largest locally owned and operated grocery retailer. The property, which is located in Campbell Industrial Park, is occupied by a subsidiary of C&S Wholesale Grocers, the second-largest grocery wholesaler in the US.

The Colliers team notes that the decision to sell was based on the seller’s desire to free capital from some of its stabilized income properties. This move positions Tower Plaza Associates to take advantage of other investment opportunities, including those arising from the distressed assets. The buyer, a local family that did not have broker representation, acquired the high-yielding industrial complex to balance its portfolio of investments.

Cordova describes the 91-315 Hanua St. building as unique in terms of its size, location and use. “These features, combined with a solid tenant who has occupied the property for more than 22 years and has a significant amount of capital vested in it, provided a strong, long-term yield profile that is consistent with the buyer’s investment strategy,” Cordova remarked.

Bratton added that the buyer acquired the property at an “opportune time because of the high rates of return with an in-place credit tenant.” Considering the eventual upswing in the market cycle, “Investors will not see this type of return three to five years from now,” he said.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2022 ALM Global, LLC. All Rights Reserved.