California investors land Hawaiian shops

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Faris Lee Investments brokered the sale of Kahana Gateway Shopping Center, totaling 60,000 square feet on the island of Maui in Hawaii. The value of the transaction was approximately $26.8 million. Kahana Partners LLC, which consists of a group of California-based investors, purchased the property from Santa Ana, Calif.-based Triple Net Properties.  David Lee, chairman of Faris Lee Investments, observed that California buyers, attracted to the tropical allure and growing popularity of the Hawaiian Islands, are offering some of the most aggressive and highest prices for properties there.  "The buyer for Kahana Gateway not only offered top dollar, but the deal also required over 50 percent down payment. It is extremely challenging to find a buyer that can put down half the price of the property on a transaction as large as this one," Lee said. "Additionally, there was an above-market interest rate on the first trust deed, which made it an even more difficult transaction f...