Amfac Center sale deal reached
By Andrew Gomes
Advertiser Staff Writer
The Japanese owner of Amfac Center has accepted an offer from a California businessman to buy the pair of downtown Honolulu office towers in a deal estimated in the $90 million range.
John Anderson, who owns Paradise Beverages in Hawai'i and about 30 other companies on the Mainland, said he has entered into a purchase agreement for the property with owner MFD 700 Bishop Inc., a subsidiary of Mitsui Fudosan Co.
Anderson said he expects the fee-simple purchase to close in October or November.
If completed, the transaction would buck what apparently is becoming a downtrend in which a string of real estate investment deals are falling through on the Mainland since the Sept. 11 terrorist attacks, which has led to anticipation of a war on terrorists.
Local real estate brokers said the Hawai'i real estate market is better positioned, and viewed by investors and lenders as more of a safe harbor compared to bigger cities that could become "target cities" during a time of military conflict.
Still, the office market generally mirrors economic health, with job losses and business closures reducing the need for office space. However, they say Amfac Center is in a stronger position, being a Class A property nearly 100 percent leased.
The property, built in 1970-71, also has a desirable six-story parking garage and interior retail plaza and meeting rooms.
Anderson said he was attracted to Amfac Center because of its Bishop Street and Nimitz Highway position as well as the white Italian marble that clads the 20-story towers.
The sudden downturn facing the local economy did not deter him. "I feel very confident about Hawai'i," Anderson said. "I think we're in a little down period right now with Japanese people not rushing to Hawai'i and a lot of Mainland people not wanting to get on an airplane, but that will change."
Local brokers said Anderson outbid several opportunistic buyers, or "vulture funds," trying to capitalize on the Tokyo-based owner's desire to sell.
Mitsui Fudosan, Japan's largest listed real estate company, owns the Halekulani hotel in Waikiki. The company purchased Amfac Center for $141 million in 1988.
Anderson heads Los Angeles-based Topa Equities Ltd., a Forbes 500 company. He has been named one of the richest people in Los Angeles. The University of California at Los Angeles graduate business school is also named after him. Last year, through Paradise Beverages, Anderson acquired Lion Coffee and Superior Coffee & Foods Hawaii.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
