Deal reached for Kapolei land
By Andrew Gomes
Advertiser Staff Writer
A private California investment firm has agreed to buy all the undeveloped property at Kapolei Business Park, about 91 acres, from an affiliate of Kapolei master developer Campbell Estate.
Jupiter Holdings LLC, a diversified investment firm based in Newport Beach, Calif., has signed a purchase agreement that is expected to be completed in May, according to the estate.
A Jupiter official said the company does not comment on pending real estate acquisitions.
Campbell Estate expects that Jupiter, which made the unsolicited offer, will continue offering individual parcels for sale or lease at the light industrial park.
A sale price was not disclosed, but one real estate broker estimated the retail value of the land at about $10 a square foot, or $40 million for the 91 acres, though Jupiter likely struck a deal for a far lower wholesale price.
The deal is the second major planned land sale in Kapolei by the estate, which has an agreement to convey 120 acres in the heart of the "Second City" to Schuler Homes for construction of 1,150 homes. The estate also is soliciting buyers for its Whalers Village resort shopping center on Maui.
Donna Goth, president of Kapolei Property Development LLC, the Campbell affiliate that owns Kapolei Business Park, said the estate planned to fill up the park with manufacturing, warehouse and other light industrial users over the long term, but decided to take Jupiter's offer.
"They were very interested in making a big investment in Kapolei because they like what's going on here," she said. "We think it's great."
The business park, which is separate from Campbell Industrial Park, opened for business in 1994 when the estate started marketing the property. Sales got off to a slow start as Hawai'i's economy struggled through a decade-long stagnation.
Today the park has seven tenants on 18 acres, including Cardinal Health, a Neiman Marcus warehouse, a Palama Meat processing plant, two churches and a city fire station.
Kapolei is the site of several new projects, including a Home Depot, the Marketplace at Kapolei shopping center, The Honolulu Advertiser printing plant, an amphitheater and residential homes.
Meanwhile, the industrial real estate market is in one of its tightest periods, with vacancies dropping to 2.69 percent at the end of last year, according to local real estate firm Colliers Monroe Friedlander, which projects the vacancy rate will drop to 2.21 percent this year despite new warehouse construction.
Campbell Estate is Hawai'i's second-largest private landowner. The trust owns about 70,700 acres on O'ahu, the Big Island and Maui.
The estate faces a 2007 deadline to terminate its trust structure, and plans to divide $2.3 billion in assets among heirs and carry on operations as a limited liability company.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
