Kailua commercial real estate may never again be the same, since the Harold K.L. Castle Foundation is now selling its commercial real estate portfolio which is managed by Kanoehe Ranch. These Kailua real estate holdings were recently put on the market, according to the Pacific Business News, this morning.
They did not say what the offer price for the Kailua real estate is, but it is my estimation that Kaneohe Ranch’s Kailua real estate holdings include about 3/4 of all Kailua commercial real estate, so the price will be in the hundreds of millions, or even a billion dollars. The Castle Foundation owns interests in the Kailua commercial real estate in downtown Kailua shopping centers where Whole Foods, Safeway, Foodland, Long’s Drugs, Macy’s and Times Market are located, among other areas and major tenants. The Kaneohe Ranch portfolio also includes interests in some Kaneohe, Honolulu and Mainland locations.
The effect on its Kailua tenants and the future development of Kailua Town, in general, remains to be seen. Kaneohe Ranch has been progressively tearing down and rebuilding, and refurbishing commercial buildings in Kailua with an overall goal of creating a walkable, pedestrian, and community friendly Kailua Downtown Plan.
Earlier this year, Kaneohe Ranch also closed on the sale of over 67 acres in the Hamakua Hillside and Marsh to the State of Hawaii, as part of its wetland and watershed protection, endangered species protection, open space preservation, and public education and recreation efforts. In 2011 Target Corporation bought a large parcel of the Castle/Kaneohe Ranch property for development of a Kailua store for $22.5M.
Whole Foods Shopping Center Living Wall