Sales rise for Hawaii commercial property

Hawaii commercial real estate sales appear to be rebounding, according to a new report forecasting an end this year to a four-year downturn.

Acquisitions of the Continental Surf Hotel in April and the Hotel Hana Maui in May were among 56 sales that helped generate $354 million in commercial property transactions during the first half of the year, a 17 percent rise from $302 million in the first half of last year.

Stronger activity in the second quarter erased what had been a 10 percent reduction in sales volume through the first three months of the year, according to the report by Colliers Monroe Friedlander.

Colliers said the $230 million sale of the downtown office tower complex Bishop Square completed July 1, and the pending sale of Pearlridge Center expected to close later this year for nearly $250 million, should boost full-year sales to at least $1.1 billion -- well over last year's $627 million total.

"Overall we anticipate an improvement over lackluster transaction activity experienced in 2009," said Mike Hamasu, research and consulting director for Colliers.

Second-quarter sales included Hotel Hana Maui for $6.8 million, Continental Surf Hotel for $14.7 million, Waianae Mall for $25.5 million and land under the Iwilei Home Depot for $23.2 million.

The biggest in the quarter was Lanihau Shopping Center in Kailua-Kona bought by Alexander & Baldwin for $37.5 million.

The REPORT includes sales of more than $1 million on commercial property that includes shopping centers, office buildings, hotels, golf courses, apartment buildings, agricultural land and undeveloped land zoned for commercial use.

Hawaii's commercial real estate industry peaked in 2005 when there were 431 transactions for a combined $4.28 billion. Last year's total was the lowest in more than a decade.