MAUI, HI-Festival Retail Fund 1 has acquired the Fairway Shops at Kaanapali and the Napili Plaza in West Maui for a combined $28.5 million, according to Mark Schurgin, president of Los Angeles-based Festival Cos. The Shops at Kaanapali is a 35,000-sf neighborhood center that was built in 2001 and is located along Honoapiilani Highway in the middle of the Kaanapali Resort. The 45,000-sf Napili Plaza community center was built in 1991 and is also located on Honoapiilani Highway in the city of Napilli, between Maui's Kapalua and Kaanapali resorts.

The two properties, which are the fourth and fifth acquired by the Festival Retail Fund 1 this year, benefit from outstanding locations that are highly visible along West Maui's primary thoroughfare, Schurgin points out. The company acquired the two centers from Honolulu-based A&B Properties Inc., the real estate subsidiary of publicly held Alexander & Baldwin Inc.

Festival Retail Fund 1, which was launched on Jan. 1, invests in ground-up and existing retail properties in major metropolitan cities throughout the US and plans to invest up to $800 million by the end of 2009. It is managed by principals Mark Schurgin and Rosalind Schurgin and thus far this year has acquired properties in California and Hawaii. The equity for the fund is being provided by Goldman Sachs.

The fund's inaugural acquisition was the 13,500-sf Gucci Building on Rodeo Drive in Beverly Hills for $40 million in January. In March, the fund acquired the 56,000-sf Garin Ranch Retail Center in the San Francisco East Bay city of Brentwood for $22 million, and in July it paid $70 million for a 38,475-sf building at 240 Post St. in San Francisco in an area of high-end retailers.

The Festival Cos. is a national, full-service shopping center development and third-party real estate advisory and management company. It has developed and/or added value to more than 120 shopping center and retail properties nationwide over the last 25 years.

The Festival Cos. is currently under way with an $84 million redevelopment of the Royal Hawaiian Shopping Center on Kalakaua Avenue in Waikiki. The redevelopment of the 310,000-sf four-story center is scheduled to be completed this year.