Estate selects land managers
By Andrew Gomes
Advertiser Staff Writer
The nonprofit trust recently informed the companies — CB Richard Ellis Hawaii Inc., Colliers Monroe Friedlander, MMI Realty Services Inc. and Sofos Realty Corp. — of its intent to assign them management contracts, which may still need approval from top officials at Kamehameha Schools.
According to some of the firms involved, the trust is assigning management and leasing for about 20 properties, including shopping centers, small office buildings, the estate's headquarters and industrial properties on O'ahu and the Big Island.
Management of the estate's prime retail centers, Royal Hawaiian Shopping Center in Waikiki and Windward Mall in Kane'ohe, is not included, but is expected to be outsourced later.
An estate spokesman yesterday said he could not confirm the deal because final contracts had not been negotiated, but the vendors are expected to take over management Dec. 1.
The $5 billion trust, set up in 1884 to help educate children of Hawaiian ancestry, announced the outsourcing plan in August as part of an effort to improve efficiency by reducing management costs, taking a more passive role in its investments and making more resources available to support educational programs.
More than 100 Kamehameha Schools employees are expected to be affected, though the estate said it would negotiate with contractors to hire estate employees. Those not retained will be eligible for separation packages including pay and training support.
Details of the contracts will not be available until signed.
Honolulu-based CB is being assigned five Kaka'ako buildings, including Gold's Gym, Alu Like and Keawe Business Center, plus a group of mostly Kalihi industrial properties.
Colliers, another local firm, is to manage Kawaiaha'o Plaza, the estate's headquarters in Kaka'ako; New Town Square in Pearl City; two Kahala office and retail properties; and industrial property at Halawa business park and in the Bougainville area that formerly housed Costco Warehouse.
MMI, which has offices in Honolulu and California and manages Kahala Mall and Pearlridge Center for other owners, is to manage Hawai'i Kai Towne Center, which includes Costco, Roy's Restaurant and vacant land with development potential.
Honolulu firm Sofos Realty is being assigned management of Keauhou Shopping Center on the Big Island.
Real-estate management outsourcing is becoming increasingly popular with large landowners, including investment trusts and big national corporations, according to Wendell Brooks III, commercial property vice president with PM Realty Group in Honolulu.
Campbell Estate, Hawai'i's second-wealthiest private trust, outsourced management of about 500,000 square feet of property to Colliers this month as part of a plan to become a limited liability company in 2007 and divide $2.3 billion in assets among the heirs of James Campbell.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
