Four downtown properties sold to local investors

Advertiser Staff

Local real-estate investors Duane Kurisu and Mike Fergus bought four downtown office properties yesterday from Aall Hawaii Holdings Inc. for $21 million.

The four office properties — 125 Merchant St., 126 Queen St., the C. Brewer Building and University Center — are 90 percent leased and will continue to be managed by American Land Co.

"This transaction reflects increasing investor confidence in Honolulu's commercial real-estate market, resulting from an improved economic outlook for the island of O'ahu," said John Lyles, president of American Land, in a statement.

Aall Hawaii Holdings, a privately held company, acquired the properties in the 1980s. American Land has been the property manager since 1988.

Kurisu and Fergus aren't planning any major changes to the buildings, which they purchased for investment, Lyles said.

Three of the properties are in the block bounded by Bishop, Queen and Merchant streets and Fort Street Mall. The fourth property, University Center, the former James Campbell Building, is across from Fort Street Mall, between Merchant and Queen streets.Ê

The investment involves approximately 65,000 square feet of fee land improved with 100,000 rentable square feet of office and commercial space in addition to 270 parking spaces.

The largest tenant is University of Phoenix, occupying the C. Brewer Building and 22,000 square feet in University Center.ÊOther tenants include homebuilder Schuler Homes, the engineering firm of Cedric Chong & Associates, Ward Research and the advertising firm of Ostrander & Chu.

American Land Company, managing and leasing agent for the properties, represented the seller in the transaction and will continue to manage and lease the properties for Kurisu and Fergus' company, KF Downtown, LLC.

"We are happy to be able to provide continuity of management services to our tenants," Lyles said, "and we are very pleased to have the opportunity to work with Duane Kurisu and Mike Fergus."