OPI seeks plant sale and leaseback

Oahu Publications Inc. has put up for sale its 147,000-square-foot print production facility in Kapolei and the 11.61 acres of land beneath it in a lease/buyback transaction to take advantage of increasing prices in the area.

The parent company of the Honolulu Star-Advertiser said Monday it is seeking to lease back the property at 4545 Kapolei Parkway for 20 years, with four additional five-year options. Commercial real estate brokerage firm CBRE Inc. is handling the transaction.

No listing price was disclosed, but OPI said that “the right buyer will pay fair value and agree to a long-term lease that meets our needs.”

“Kapolei has grown tremendously in recent years and our land and building have multiplied in value,” said Dennis Francis, president and chief executive officer of OPI. “After thorough analysis, we have decided that now is the best time to capitalize on its value and move forward with a sale/leaseback of our print-production facility.”

Francis said this type of transaction has become an industry trend nationally, particularly by media corporations. He said business will continue as usual after the sale.

OPI became owner of the print production facility in 2010 when the Honolulu Star-Bulletin and The Honolulu Advertiser merged. Gannett Co., former owner of the Advertiser, opened the facility in 2004.

Besides the Star-Advertiser, OPI owns The Garden Island newspaper on Kauai, The Hawaii Tribune-Herald and West Hawaii Today newspapers on the Big Island, and publishes a range of publications including MidWeek and various specialty publications, luxury and hotel magazines.