An investment group led by O‘ahu developer Jeffrey R. Stone, Princeville Associates LLC, purchased the assets of the Princeville Corporation on March 17 from its Japanese owners, then within a short time reportedly sold portions of the resort including the
An investment group led by O‘ahu developer Jeffrey R. Stone, Princeville Associates LLC, purchased the assets of the Princeville Corporation on March 17 from its Japanese owners, then within a short time reportedly sold portions of the resort including the Princeville Resort hotel to another company.
This type of deal is known as a “simultaneous transaction.”
The two sales were reported in press releases, one issued on March 17, and a second on March 18.
A joint statement issued March 18 by Stephanie Kaluahine Reid, public relations director for Princeville Corporation, and Tammy Maeda, regional communications manager for Starwood Hotels & Resorts, said the hotel was sold to Cornerstone Real Estate Advisors LLC.
No prices were revealed in the press release for the simultaneous transactions, nor for the acquisition of Princeville Corporation, or the hotel.
Stone told The Garden Island, contrary to the report, that the hotel had not been sold to Cornerstone. He said the simultaneous transaction was to a related entity, Princeville Hotel LP (limited partnership), controlled by Cornerstone. Stone confirmed he is a principal and officer of Princeville Hotel LP.
Jay Furfaro, general manager of the Princeville Operating Co. LLC (limited liability company), told The Garden Island the Princeville hotel asset is owned by Princeville Hotel LP. Its general partner is Princeville Hotel LLC, which is managed by Cornerstone Real Estate Advisers (CSRA) on behalf of the partnership. Stone is also a principal and officer of Princeville Hotel LLC.
According to the March 18 joint press release, “the Princeville Hotel will continue to be managed by Starwood Hotels and Resorts, Worldwide Inc., following the closing of the sale of the Princeville Hotel to Cornerstone Real Estate Advisors LLC.”
Stone described the transaction as a “division of assets.”
“Cornerstone’s strength is operations of hotels,” Stone said.
Stone denied a rumor that he “flipped” the hotel to another entity for profit.
“There was no flipping of the hotel, no breakup,” he said.
Jim O’Shaughnessy, vicepresident of acquisitions and development for Cornerstone, said Wednesday he would neither confirm nor deny whether Cornerstone owned the Princeville Resort, but said Cornerstone “stands by the press release.”
The press release quotes Cornerstone President Dave Reilly as saying, “Cornerstone is delighted to invest in the world-renowned Princeville Hotel, and to continue to increase our real-estate presence in the Hawaiian Islands.”
Furfaro, who also serves as a county councilman, said CSRA leaders, as asset managers, will handle all operational and renovation decisions.
Upon the announcement of the purchase in the March 17 press release, Stone said, “we look forward to restoring this one-of-a-kind property, a North Shore icon for so many years, to the grandeur it enjoyed in the past,” of the Princeville Resort (the hotel).
Stone promised at that time an eventual multi-million-dollar renovation of the Princeville Resort, and said his group was “committed to the success of Princeville.”
Cornerstone is an indirect, wholly owned subsidiary of the Mass Mutual Financial Group.
In 1998, Cornerstone/Mass Mutual officials teamed with Stone to purchase the JW Marriott Ihilani Resort & Spa at Ko Olina in leeward O‘ahu.
Princeville Associates LLC, a joint-venture company led by Stone, purchased Princeville Corporation March 17.
The acquisition included the 252-room Princeville Resort, two golf courses, tennis and spa facilities, the Princeville Shopping Center, Princeville Airport, and thousands of other acres of other land holdings on Kaua‘i’s North Shore, according to information provided by Stone’s publicist, Sheila Donnelly & Associates.
Cornerstone Real Estate Advisors was among Princeville Associates LLC’s partners in the purchase of the resort’s assets from its majority owner, Suntory Ltd., the distiller and largest privately-held company in Japan, and its minority partners, Mitsui and Company Ltd., one of Japan’s major trading companies, and Nippon Shinpan Company Ltd., a major credit card company in Japan. The partners took control of Princeville Corporation in 1990 following the bankruptcy of previous majority owner Qintex, Ltd. of Brisbane, Australia.
Furfaro said the hotel is operated by Starwood Hotels, and that hotel workers are Starwood employees.
All other Princeville Corporation employees are now employees of Princeville Operating Company LLC, Furfaro said.
