Pearlridge Owners Gain Full Control of Mall with $70M "Uptown" Buy

Pacific Business News

Ohio-based Washington Prime Group Inc. and New York’s O’Connor Mall Partners LP, which own the downtown part of Pearlridge shopping center, have acquired the entire uptown part of the Central Oahu mall for $70 million.

Thus giving the two firms complete control of the state’s second largest shopping center.

The newly acquired 180,000-square-foot section, which is part of the mall's uptown section, is anchored by Ross Dress for Less and T.J. Maxx. It is 91 percent occupied.

Honolulu-based BlackSand Capital, headed by the scions of two prominent Hawaii real estate families — the Kobayashis and MacNaughtons — purchased a portion of Pearlridge Uptown in 2011, which was the firms’ first purchase.

Lou Conforti, CEO and director of Washington Prime, said that gaining full control of Pearlridge was quite important as it continues with the previously announced redevelopment project with O’Connor.

“Also appealing is the immediate accretion as we are acquiring a 91 percent occupied parcel anchored by T.J. Maxx and Ross Dress for Less,” he said in a statement.

The joint venture, which roughly split the cost of the purchase of the remaining part of uptown, plans to spend $40 million on property upgrades during the second quarter of 2017.

In January, Washington Prime said it is spending $33 million to redevelop Pearlridge, which includes a remodel of the downtown area with new teants, an upgraded dining space, new interior and exterior finishes and updated entranceways. The project also will include a move by Down to Earth to an expanded freestanding space, a Bank of Hawaii location, Pieology, Five Guys Burgers & Fries and men’s retailer Lindbergh.