A California-based retail investment trust is moving ahead with buying the bankrupt Lahaina Gateway Center from Central Pacific Bank, which foreclosed on the shopping center last year.
TNP Strategic Retail Trust of Irvine announced Wednesday that its board of directors had approved acquiring the 11.3-acre property. The company, which also owns the Waianae Mall in West Oahu, said it expects to close the sale this month.
"The acquisition of Lahaina Gateway . . . is consistent with our strategy of acquiring a mix of stabilized and value-added assets," the company's senior vice president, Steve Corea, said in an announcement. "The property serves a strong tourism-based demographic while also serving the needs of the community. Best in class tenants, including Foodland Farms and Outback Steakhouse, provide a solid foundation for continued leasing activity at the center."
Other tenants include Barnes & Noble, Genki Sushi, The Melting Pot, 100 Wines, Teddy's Bigger Burgers and Office Max. TNP said the center is about 81 percent occupied.
The 136,000-square-foot Lahaina Gateway Center opened in August 2008 and was hard hit by the economic recession.
Developer Bilarjo LLC had taken out a $41 million construction loan in 2006, and another loan for $7.3 million. After multiple extensions, lender Central Pacific Bank sued to collect on the loans.
The bank was the only bidder at the foreclosure auction last year.
TNP did not disclose the purchase price, but said it is buying the center "at a substantial discount to the bank's construction loan and the company's lender's appraisal conducted in June."
A spokesman for Central Pacific Bank did not immediately respond to a request for comment.
