Posted on: Friday, October 10, 2003
'Aiea retail centers list for $26 million
| • | Map: Shopping center locations |
By Sean Hao
Advertiser Staff Writer
Two 'Aiea shopping centers are back on the market as part of a foreclosure suit brought by GE Capital of Hawaii earlier this year.
At a confirmation hearing yesterday, GE Capital received approval to repossess the Pearl Kai and Westridge shopping centers for about $19 million, the remainder of the mortgage on the two centers near Pearlridge Center. The transfer of ownership of the property is expected to take 45 to 60 days.
Mike Cox, asset manager for GE Capital, said the shopping centers are drawing interest from potential buyers. The plan is for both properties to remain retail centers.
"We've been getting a lot of interest both from local and Mainland buyers on this," Cox said.
GE Capital moved to foreclose on the properties in February after Pearl Kai Corp. defaulted on its loans. GE Capital made loans totaling about $24 million to Pearl Kai Corp. and Japan-based Tokai Rayon Co., to acquire the centers in 1991.
Westridge has 61,000 square feet of space with tenants including Tony Roma's, Eastern Garden and Buffet 100. Pearl Kai has about 80,000 square feet with tenants including Tower Records, Cheapo Music and Jiffy Lube.
The state owns the land under Westridge, and Kamehameha Schools is landlord for Pearl Kai Center.
The properties, which were listed by Grubb & Ellis CBI, were advertised at a price of $25.7 million.
Jackson Nakasone, chief executive for Grubb & Ellis, said Pearl Kai defaulted after it was unable to refinance its loan with GE Capital and not because of any problem with the performance of the two shopping centers.
The city, for property-tax purposes, values Westridge excluding land at $5.9 million; it values Pearl Kai excluding land at $9.3 million.
Reach Sean Hao at shao@honoluluadvertiser.com or 525-8093.
