Hawaii Real Estate

A bill before the state legislature would help revive the plan to redevelop the state owned land around the Aloha Tower Marketplace is gaining new strength.  Last year the state agency that was in charge of the redevelopment was disbanded because of lack of support.  The last proposed project was proposed by Texas developer, Ken Hughes.  The project which dragged on for 6 years included residential as well as retail units ended which an arbitration award to Hughes for $1.6million in 2009.

The area is in dire need of development and a new plan to support downtown and the cruise industry traffic.  The new committee will have fewer decision makers and have a weighted participation by the Department of transporation.

To learn more about real estate in Hawaii, contact Malia L. Meenderman, R, Bonnebaker LLC

Marriott is joining forces with Alexander and Baldwin to build a Courtyard by Marriott.  The hotel will be located near the Kahalui airport.  The project has been planned for nearly a decade and will finally break ground next week.  Tourism officials have longed wanted a hotel near the airport that can accommodate business travelers and this would fill the bill.

To learn more about real estate in Hawaii contact Malia L Meenderman, R, our principal broker.

Pershing Square Capital run by William Ackman announced today that they have acquired a 8.6% stake in Alexander & Baldwin (ticker symbol:  ALEX).  William Ackman is notorious for taking a share of the company and forcing changes to obviously make money for the shareholder and, of course, his hedge fund.  They do tend to stay with projects on a long term basis, although some of the changes they may want to make are at driect odds with management.

Alexander and Baldwin has 3 separate business:  transportation, real estate holdings, and agri business.  It is very likely that Ackman sees value in splitting up these three business into either two or three pieces.  Over the years, Alexander & Baldwin has been rather stable because its profits come from three different sources.

The real estate part has always been of interest.  They own some 87,000 acres of land here in Hawaii and elsewhere.  This is all income producing and from time to time they do a development.  They made a very nice profit from building and developing the Hokua Condominium on Ala Moana Blvd.  They will attempt to repeat this feat because they have acquired the rights and land to develop a new town very close by that project and that of the Koolani and Hawaiki.

They own and operate some 8 million square feet of industrial, office and retail properties in Hawaii and through the U.S.  This all makes up an interesting play for Pershing Capital, but it could have a definite strong impact on Hawaii which as of yet, remains to be seen.