Argosy Real Estate Partners Exits the Flagship Walgreens Honolulu

On July 19, 2017, Argosy Real Estate Partners III, L.P. and its parallel funds (“AREP III”), sold the 36,000 square foot flagship Walgreens store in Honolulu, Hawaii, completing a partial exit from AREP III’s Kapiolani investment.

In November 2015, the AREP III partnered with Mana’olana Partners to acquire Kapiolani, a project consisting of the flagship Walgreens store, a 90-stall parking garage and an adjacent 73,000 sq ft office building.  The business plan is to process a density transfer of excess development rights from the Walgreens parcel to the adjacent office building parcel, execute a lot-line adjustment, and re-entitle the existing office building parcel for re-development to two high-rise towers, likely for-sale residential or mixed for-sale residential and lodging use.