The Bratton Team

KAPOLEI, HI-Locally based KDI Investments Inc. has acquired a 189,000-square-foot cold storage freezer food distribution building from Tower Plaza Associates LP for $19.2 million, according to Colliers International brokers who negotiated the sale. The property, at 91-315 Hanua St. in Kapolei on the island of Oahu, is the largest such facility in Hawaii, according to the Colliers brokers, who included senior vice president Fred Cordova in the Downtown L.A. office of Colliers along with senior vice president Mark Bratton and executive vice president Scott Mitchell at Colliers International in Hawaii.

The Colliers team represented the seller, which had acquired the property in 2006 from a related company of Foodland Super Market Ltd., Hawaii’s largest locally owned and operated grocery retailer. The property, which is located in Campbell Industrial Park, is occupied by a subsidiary of C&S Wholesale Grocers, the second-largest grocery wholesaler in the US.

The Colliers team notes that the decision to sell was based on the seller’s desire to free capital from some of its stabilized income properties. This move positions Tower Plaza Associates to take advantage of other investment opportunities, including those arising from the distressed assets. The buyer, a local family that did not have broker representation, acquired the high-yielding industrial complex to balance its portfolio of investments.

Cordova describes the 91-315 Hanua St. building as unique in terms of its size, location and use. “These features, combined with a solid tenant who has occupied the property for more than 22 years and has a significant amount of capital vested in it, provided a strong, long-term yield profile that is consistent with the buyer’s investment strategy,” Cordova remarked.

Bratton added that the buyer acquired the property at an “opportune time because of the high rates of return with an in-place credit tenant.” Considering the eventual upswing in the market cycle, “Investors will not see this type of return three to five years from now,” he said.

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