The seller was One Waterfront, LLC, a partnership between Michigan-based Kojaian Management Corp. and its New York City-based partners Witkoff Group and Lehman Bros. The partnership, led by Grubb & Ellis chairman C. Michael Kojaian, bought Waterfront Plaza less than four years ago for $47 million and spent $1.7 million upgrading and leasing the property.

Shidler Group partner Matt Root says the appreciation in Honolulu commercial properties over the past few years demonstrates the strength of the market and the dramatic return to health of the Hawaiian economy after a several-year recession. "Hawaii is now one of the hottest markets in the nation for commercial property," he says. Crediting defense-related spending for the strong showing, he says "we are cautiously optimistic that it will translate into greater values down the road. We see Honolulu as a recovering market."

Root tells GlobeSt.com that the deal closed with $5 million of 1031 Exchange funds and a five-year loan at a 6% fixed-rate interest from RBS Greenwich Capital Markets Inc. of Greenwich, CT. Negotiations began in April, with Shidler positioned as the frontrunner with a 20% ownership stake in Honolulu's CBD office market and 10% of the region's market.