| This story has been corrected. |
An affiliate of Safeway Inc. has sold its retail center on Kapahulu Avenue to Invesco, an investment company based in Atlanta.
Property Development Centers, a wholly owned subsidiary of Safeway specializing in shopping center development, sold the buildings and land as part of a four-property portfolio that includes retail outlets in West Hollywood, Dublin and Burlingame, Calif. Terms of the sale were not disclosed.
The Pleasanton, Calif.-based grocery chain has agreed to a long-term lease for the supermarket portion with the new owner.
"The sale of the shopping center does not affect the store there. We are committed to Kapahulu and Safeway will remain," Susan Houghton, Safeway’s director of public affairs, said in an email.
A representative for Invesco did not provide comment on the transaction.
The 4.7-acre center, built in 2007, has 10 tenants in addition to Safeway and a gross leasable area of 78,608 square feet. Tenants include Barefoot League, Cold Stone Creamery and Burgers on the Edge.
The Kapahulu market is one of the company’s highest-volume stores in Hawaii, based on sales, according to marketing materials.
In a confidential offering memorandum the Star-Advertiser obtained last month, Safeway said it was an "extremely rare opportunity for fee ownership of a premier grocery-anchored retail property in Honolulu … a severely supply-constrained market with limited, if any, developable land remaining, high barriers to entry and very few retail opportunities available."
Safeway in December opened a new store on South Beretania Street, measuring about 64,000 square feet. Its strategy in recent years has been to develop new stores in conjunction with adjacent retail space for restaurants and other tenants through Property Development Centers.
Its projects include a Safeway-anchored center in Ewa Beach and another slated for construction next year in Lihue.
Safeway, which operates about 1,700 stores across North America, opened its first Hawaii store on South Beretania Street at Pensacola Street in 1963.
CORRECTION
» Safeway’s Hilo store opened last year. The story above said the store had not opened yet. |
