Posted on: Tuesday, October 19, 2004

Investors put Foremost plant up for sale

By Andrew Gomes and Sean Hao
Advertiser Staff Writers

Investors who helped a Big Island dairy owner purchase the real estate of Foremost Dairies-Hawaii have put the shuttered Kalihi milk processing plant up for sale.

Newfair Investments LLC, run by executives of Island Insurance Cos., have listed the property at 2277 Kamehameha Highway through real-estate firm CB Richard Ellis Hawaii Inc., roughly a week after Foremost ceased operations.

Foremost's owner said the business was closed, resulting in the loss of 87 jobs, because it no longer was economically feasible to continue operations.

There is no asking price for the four-acre site, but CB Richard Ellis said Newfair hopes to recoup its investment in the property it purchased in January for $9 million and leased back to Foremost's buyer, Bahman Sadeghi.

Franklin Tokioka, Island Insurance's chief investment officer and head of Newfair, has previously said Newfair invested in the Foremost facility in the interest of keeping Foremost alive in Hawai'i. He could not be reached for comment yesterday.

Foremost competitor Meadow Gold Dairies said yesterday it wasn't interested in purchasing the former Foremost property. Meadow Gold parent Dean Foods Co. has bid on the Foremost business, which includes processing equipment, a fleet of trucks and the Foremost brand name.

CB Richard Ellis said the fee-simple industrial-zoned property is suitable for redevelopment as warehouse property, for use by a manufacturer or other allowed use.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.