Summary

Kona Coast Shopping Center is a neighborhood shopping center, located on Palani Road on the Big Island of Hawaii. It has excellent visibility with over 723 feet of frontage along Palani Road, the primary east/west commercial corridor in the Kailua-Kona district. The center also enjoys 470 feet of frontage along Highway 19. This is the highway that encircles the island. At the time of acquisition, the property was 100% leased to eighteen tenants.

Income-oriented investment profile with the current return representing 79% of the total return. The strategy includes newly originated, long term fixed rate financing to lock-in low rates in order to protect the current return. Market fundamentals are very strong. There are high barriers to entry due to very little land zoned for retail development in Kailua-Kona.  The lack of supply has led to a very tight leasing market. The property is anchored by KTA Super Stores, the predominant grocery chain on the Big Island.  KTA occupies 28,422 sf (35% of NRA) under a long-term lease which expires January 31, 2029; this tenant has anchored the center since it was built in 1975.