Posted on: Saturday, September 20, 2003

Maui mall buyer closes deal

By Andrew Gomes
Advertiser Staff Writer

California real-estate investment firm Somera Investment Partners LLC yesterday completed its acquisition of Maui's largest shopping center, Queen Ka'ahumanu Center, from Maui Land & Pineapple Co. and the state Employees' Retirement System for about $75 million.

The purchase, reported in July, was made in partnership with CoastWood Capital Group LLC and Seligman Western Enterprises Ltd.

To manage the 572,900-square-foot Kahului mall, Somera has hired General Growth Properties Inc., which owns and manages Ala Moana Center and Victoria Ward Centres on O'ahu, and Prince Kuhio Mall on the Big Island.

Scott Crockford, Ka'ahumanu Center general manager, has joined General Growth and will continue to oversee mall operations.

Somera managing director Steve Plenge said the partnership's strategy will be to solidify the local customer base and reach out more to the tourist market.

"The center has good architectural bones, with a nice open-air feeling," he said. "We think we can really build on that by continuing to upgrade stores and emphasizing the unique design of the property."

Ka'ahumanu Center was built by Dillingham Corp. on Maui Land & Pine property in 1972. Maui Land & Pine acquired the leasehold interest in the mall in 1985 and partnered with the state pension fund in 1993 to pay for an ambitious $60 million renovation and expansion completed in 1994. In recent years the property has struggled financially.