A fourth-quarter investment report from Colliers International Hawaiʻi has year-end summaries for 2022 — noting the biggest commercial real estate sales of the year.
It also described the effect of sharply rising interest rates on investment.
The single largest sale by local buyers was nearly $96 million for 484 acres in Kapolei that had been held by Beijing-based investors, Oceanwide Resort Community HI.
That developer was planning to build a residential complex of “upscale homes,” but the property was acquired by WT Laulima Holdings.
The City & County of Honolulu was the buyer in the state's second-largest local real estate transaction last year. It paid nearly $38 million for 2241 Kapiolani Blvd., a parcel it intends to develop into 100 affordable housing rentals.
And among the top sales of 2022 was $32 million for the former Love's Bakery site at Middle Street, acquired by Honolulu Freight Service.
Overall, Colliers reported, rapid interest rate hikes in 2022 dampened commercial real estate investment activity. The number of commercial real estate transactions dropped a little over 1% from 2021 to 2022, but the sales volume declined nearly 25%, totaling $2.37 billion last year.
Especially absent have been "megadeals," or sales of properties over $100 million, as International investor activity remains muted.
Foreign investments last year totaled just $183 million, compared to the $3 billion seen each year in 2015 and 2016.
