Kaneohe Ranch Portfolio Comes to Market

The Harold K.L. Castle Foundation and Kaneohe Ranch Co. LLC have put the entire Kaneohe Ranch commercial real estate portfolio, which includes the town center in Kailua in Windward Oahu, on the market with Eastdil Secured. According to a Pacific Business News report, the possible sale of Kaneohe Ranch could easily top $1 billion and is similar to what happened when General Growth Properties Inc., the owner of Ala Moana Center, closed on a deal in 2002 to acquire Victoria Ward Ltd. for $250 million.

The properties are reportedly being marketed in their entirety or as two geographic sub-portfolios, the price of which is not currently available. Many of the existing commercial properties in Kailua were developed as leasehold interests 40 to 50 years ago, and several of the long-term ground leases “have either expired or will be expiring by the end of this decade, providing ownership with the opportunity to continue to upgrade and reposition downtown Kailua,” the listing said.

The Hawaii portfolio also includes the land beneath the Windward City Shopping Center and Servco Windward Toyota in Kaneohe, and three properties in Honolulu. The Kailua town center includes a mix of fee-simple and leased properties whose tenants include Whole Foods MarketFoodlandSafewayTimes SupermarketLongs DrugsMacy’s and California Pizza Kitchen.

The Mainland portfolio includes five leased fee land interests, three single-tenant retail and office assets and one multifamily asset located in San Francisco, Seattle, Miami, Dallas, Phoenix and Portland, Oregon. Tenants in those properties include Lowe’s in San Jose, California, a Kohl’s department store in Phoenix, the Miami Marriott Biscayne Bay and the U.S. government.

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