BH Properties Acquires Shops at Mauna Lani on Kohala Coast

The Shops at Mauna Lani, the open-air retail and dining hub anchoring the Kohala Coast's Waikoloa Resort corridor, has a new owner: Los Angeles-based BH Properties, which assembled the acquisition in two recorded transactions totaling $26 million.

Public records show BH Properties first purchased the ground lease on the facility for $9 million on Feb. 12, then acquired the six underlying acres for $17 million on March 9. Industry outlets reported terms were not disclosed, but the public-record filings document both transactions. The combined $26 million was slightly less than the $27.1 million that Phoenix-based ArciTerra, owned by Jonathan Larmore, had previously paid to the family of former owner Bill Borkan, who died in 2013.

Situated at 68-1330 Mauna Lani Drive in Kamuela, the center serves as the primary retail and dining destination for the surrounding Waikoloa Resort area and nearby Waikoloa Village. Industry publications report the property at 75,000 square feet, while public records tied to the ground-lease filing describe an 80,000-square-foot facility; the discrepancy has not been officially explained. Anchors include Tommy Bahama Restaurant & Bar and Foodland Farms grocery store, with additional tenants such as Island Hopper Taproom, Mauna Lani Coffee Co., Hawaiian Island Creations, Knead & Bake, and Juice 101 rounding out the mix alongside local retailers, art galleries, and wellness operators.

BH Properties president Jim Brooks framed the deal as consistent with the company's five-year strategy of targeting resort-adjacent retail. "Opportunities to own generational properties with strong surrounding demographics has been our retail strategy the last five years," Brooks said. "The Shops at Mauna Lani checked all the boxes." Brooks added that the center carries "significant untapped leasing potential" and that his team specializes in value-add assets requiring a strategic merchandising plan and capital investment.

The immediate challenge is vacancy: 11 storefronts currently sit empty, and BH Properties has said it intends to aggressively fill them. CBRE Retail Services has been engaged as the leasing team, with Kelly Graf, Connor Patterson, Kenny Brooks, Wendell Brooks, and Kimo Greenwell handling the assignment. Target tenant categories include chef-driven restaurants, lifestyle retailers, boutique fitness and wellness operators, and local Hawaii brands. CBRE associate Kelly Graf said the team is "energized by BH Properties' dedication to delivering a revitalized and reimagined center," with a merchandising plan she described as "aligned with the upscale and active lifestyle of Mauna Lani."

At least one existing tenant welcomed the change. A business owner identified as Wood told Big Island Now he loves the location, has seen strong results at the center, and is excited about the new ownership's revitalization plans.