Location: Honolulu, Hawaii Property Type: Two 8-story Office Towers – The Richards Building and the Mililani Building. Acquisition Type: Value Add Size: 184,752 SF
The BLOCK Honolulu is ideally located in Honolulu’s CBD within easy walking distance of the State and Federal buildings, the Circuit and State Supreme Courts, Aloha Tower Marketplace and the waterfront.
Situated on the north side of Ala Moana Blvd., The Richards Building fronts a greenbelt, and the Mililani Building fronts the Mililani Street Pedestrian Mall. The verdant setting of the properties provides a convenient and pleasant work environment, and offers treetop and ocean views to its tenants.
Both properties offer generous parking capacity with the added convenience that direct access can be gained from each level of the garage onto each building’s office floors, a very desirable amenity.
THE GATHERING PLACE IN KAPOLEI
Location: Kapolei, Oahu Property Type: Retail Development with some Office Acquisition Type: Value-add Size: 55,000 sf on 4.8 acres
Through Atalanta’s vision, The Gathering Place in Kapolei will be an innovative retail center that blends an island lifestyle center with a community shopping hub – a place where residents and visitors can shop, dine and stay awhile in a creative setting that delivers a contemporary yet authentic Hawaiian experience. This compelling concept is virtually unprecedented in the area, giving The Gathering Place in Kapolei the competitive advantage of being an attractive destination for local shoppers and guests of nearby resorts who seek the respite of an intimate and relaxed Kapolei experience. The Gathering Place in Kapolei will have a mix of first-to-market national and regional retailers and has garnered immediate interest from both prospective island and mainland tenants.
The Gathering Place in Kapolei is located in Hawaii’s fastest growing region which has a demographic profile of young, high income homeowners; a trade area that is complementary to the site; and the benefit of neighboring Ko’Olina resorts, including Disney’s Aulani, which bring many visitors through Kapolei daily. With approximately $93 billion in business activity projected for Kapolei and its position secured as a major stop for Honolulu’s 20-mile metro system currently under construction, the area is forecast to sustain significant growth well into the future.
Wendell Brooks III (S)
Jones Lang LaSalle
James L. “Kimo” Greenwell (S)
Jones Lang LaSalle
Michael J. Yani (S)
Jones Lang LaSalle
Sean G. Tadaki (B) CCIM
Commercial Asset Advisors, LLC
808.564.3303 -Office Direct
AIRPORT CENTER *
Location: Honolulu, Hawaii Property Type: Office Acquisition Type: Value Add Size: 110,983 SF No. of Stories: 15 Year Built: 1975 No. of Tenants: 40 Value: $28,000,000INVESTMENT HIGHLIGHTS Airport Center was first acquisition of the founding principal of Atalanta’s former company, Arroyo Realty Partners. Prior to purchasing the building, this Class B- asset was leased at over 90% occupancy, but was not achieving its unique micro-market’s lower-than-5% average vacancy rate. Also, because of operational and historic perception, lease rates were well below the market. The strategy to institutionalize the asset included: Capital improvement projects to enhance the asset’s visual appeal, physical needs and address historic operational issues; implementing a best-practices tenant relations program to enhance tenant retention; increasing rents to projected market levels (+ 30%); and, positioning the asset to appeal to institutional investors that were believed poised to return to the Islands. The acquisition and asset management of Airport Center yielded investment partners a 62% compounded annual return and a multiple of 3.61x return on investment.
415 HUNTINGTON BLVD. *
Location: San Marino, California Property Type: Office Acquisition Type: Value Add Size: 18,038 SF No. of Stories: 1 Year Built: 1962 Value: $6,000,000INVESTMENT HIGHLIGHTS 415 Huntington Boulevard was a vacant, single story office building in the prestigious San Marino, California sub-market. The founding principal of Atalanta’s former company, Arroyo Realty Partners, acquired the vacant building following the departure of a rapidly growing, regional bank that had previously owned and occupied the entire asset. The team recognized immediately that there was a value proposition by updating systems and creating a multi-tenant building catering to local, high-end office users. As capital improvement projects got underway, an offer to purchase the property was received from a local owner/user. After completing $200,000 of capital improvement projects, the asset was sold for $6.0 million, generating after-tax returns to its investors were 8.7%.
HASEKO CENTER *
Haseko Center, purchased in an off-market acquisition, the asset was challenged with a market perception that it was a government occupied Class B- asset. The founding principal of Atalanta’s former company’s, Arroyo Realty Partners, believed significant potential value existed in the property. To achieve that required undertaking physical enhancements to address deferred maintenance issues; re-branding and packaging the building with another asset as part of a two building, synergistic property, subsequently renamed Ocean View Court; working closely with lenders and ground lessors to streamline reporting and operational relationships; and, increasing rents to levels consistent with the Honolulu CBD Class A-/B+ market. As a result of completion of more than $700,000 in improvements in the first year of ownership, rents increased, and the market’s perception of the property improved dramatically. Sold along with another asset as part of a portfolio disposition, the assets combined to generate 65% compounded annual return and a multiple of 2.2x return on investment.
* Completed by founding principal of Atalanta’s former company, Arroyo Realty Partners.