HONOLULU, HAWAII--(BUSINESS WIRE)--The Mills Group announced that it has completed the sale of the Waikiki Galleria (top left photo) to Sanno USA, Inc. The iconic project located in the heart of Waikiki along Kalakaua and Royal Hawaiian Avenues is home to the DFS Galleria, and includes a 15 story multi-tenant office tower, clad with distinctive exterior arches that are as widely recognized in Tokyo as they are in Hawaii.
"The project has been an outstanding investment for our group and represents some of the best, institutional quality real estate in Hawaii," said Bill Mills, chairman of The Mills Group. “Despite all of the ups and downs of the commercial real estate market and global economic turmoil, the Waikiki Galleria project has always performed well.”
While there has been a dearth of larger transactions this year, the sale of the Waikiki Galleria is surely going to remind investors that Hawaii will always play a role in national trends. “It really bodes well for the entire state that deals of this magnitude can get done here,” added Mills.
The Waikiki Galleria had not been listed for sale, but an inquiry from the buyer resulted in meaningful discussions and ultimately the sale.
The buyer is represented by Steve Sombrero of NAI Chaney Brooks. Chaney Brooks has assumed responsibility for management and leasing of the project. Sombrero feels that the project represents an excellent strategic long-term investment.
"People immediately recognize the project whether standing on Kalakaua Avenue or seeing it in a photograph in Tokyo. Our client was very fortunate to have this rare opportunity to acquire such a unique, high quality asset, and they plan to hold it as a long-term investment,” said Sombrero.
The Waikiki Galleria Project was originally developed by Bank of Hawaii and the building served as the long-time location of the Waikiki branch of the bank and also housed a Woolworth store on the first and second floor. In 1988 the project was sold by the Bank to Nippon Shinpan of Japan. Nippon Shinpan later sold the project in October 2001 to an investor group comprised of The Mills Group, The Shidler Group and Angelo Gordon.
The Mills Group, along with a consortium of private investors from Japan, bought out the other investors in 2003 and operated the project since that time.
While the sale represents the last asset in Waikiki for The Mills Group, it does not indicate a lack of interest for future projects in Waikiki.
“We have been long-term believers in the Hawaii economy and Waikiki specifically,” commented Mills. “We continue to look for strategic investments in both real estate and operating companies and would love to have another project in Waikiki.”
The Mills Group is based in Honolulu and has a 25 year history of real estate and other diversified investments located around the Pacific Rim.
Other notable current real estate projects of The Mills Group include The Shops at Wailea (top right photo), a luxury retail shopping center in Wailea, the master planned community of Maui Lani (middle right photo), the Lanikeha project in Kaanapali, Maui and two shopping centers on Guam, Tumon Sands Plaza and Guam Premier Outlets.
Contacts
The Mills Group
Mark Johnson – Partner, 808-275-5755 or
808-554-6995
