Office of Hawaiian Affairs expands commercial property in Iwilei in $47 million deal

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The Office of Hawaiian Affairs has expanded its commercial portfolio with a $47 million purchase of two properties next to its North Nimitz Highway headquarters.

The acquisitions, approved by the Board of Trustees, includes the shopping center at 500 N. Nimitz Highway with national chain stores Ross Dress for Less, Longs Drugs (CVS Pharmacy) and PetSmart.

The other property is at 501 Sumner St., a 232,000-square-foot warehouse condominium property home to a variety of small businesses.

According to OHA, the acquisitions represent long-term investments expected to generate more than $1 million per year in net income. OHA was represented by Colliers in the purchase.

All funds generated by OHA are supposed to go toward the betterment of conditions for Native Hawaiians, and the latest purchase, the agency said, follows OHA’s 15-year strategic plan that calls for boosting the value of investments and the value from financial, commercial and land resources.

“The decision by our trustees to invest in these two properties was ultimately based on what is best for our Native Hawaiian beneficiaries,” OHA Board Chair Carmen “Hulu” Lindsey said in a release. ”The due diligence accomplished by our team was extensive. We feel that acquiring these two properties provides us with another revenue stream and increases our ability to deliver programs and services to more Native Hawaiians.”

OHA has seen its $21.3 million purchase of the Gentry Pacific Design Center in 2012 more than double in value, the agency said. The office and retail center at 560 N. Nimitz Highway, renamed Na Lama Kukui, is now home to OHA headquarters.

In addition to Na Lama Kukui and the newly purchased properties, OHA’s commercial property portfolio includes 30 acres in Kakaako Makai.

OHA, the 13th-largest landowner in Hawaii, has been managing lands since 1988, when Pahua Heiau in Maunalua was deeded to it. Since then, OHA currently manages over 26,000 acres of legacy lands to protect natural and cultural resources, including the Wahiawa lands surrounding the Kukaniloko Birthstones, Wao Kele o Puna on Hawaii island and the Palauea Cultural Preserve on Maui.