Terramar Acquires New Retail Center on Oahu for $100M

By Scott Baltic, Contributing Editor

Terramar Retail Centers, of Carlsbad, Calif., has purchased, for $99.5 million, the Laulani Village Shopping Center, a relatively new 223,000-square-foot neighborhood retail center in Ewa Beach, Oahu, Hawaii, the company announced Tuesday. The seller was Property Development Centers, a subsidiary of Safeway Inc.

Sited on about 20 acres at the corner of Fort Weaver Road (Route 76) and Keaunui Drive, the center is anchored by a 60,000-square-foot Safeway, with a 33,000-square-foot City Mill super-hardware store, and 35 smaller shops and restaurants, including Petco, Ross, Walgreens, Starbucks, Panda Express and Teddy’s Bigger Burger.

Safeway and City Mill opened in 2012, with the remaining stores opening in 2013. The center is currently 89 percent occupied, with a few stores to be built out and opened later this year.

“With over 20 percent population growth projected in the area between 2010 and 2018, West Oahu is fast becoming a secondary urban center” on Oahu, Matthew Smith, Terramar’s vp of retail center acquisitions, said in a release.

He noted that the center is only 10 miles west of Honolulu and neighboring Pearl Harbor, two major employment centers.

“Terramar is actively pursuing retail acquisitions in the Western U.S.,” Terramar president/CEO Steve Bowers told Commercial Property Executive. “We are particularly focused on expanding our portfolio of grocery-anchored retail centers like the Laulani.”

Jeff Weber, Chris Hoffmann, Rob Wehmueller and Kerrie Weis of Eastdil Secured marketed the property to a select group of institutional buyers on behalf of Property Development Centers. Terramar represented itself in the transaction.

CBRE will manage Laulani Village, and Jones Lang LaSalle will continue leasing the center.