Lowe's may be looking to expand
By Andrew Gomes
Advertiser Staff Writer
Another prospective buyer for the "Ke'eaumoku superblock" is stepping up with development plans for the 8.5-acre parcel three blocks mauka of Ala Moana Center.
A presentation is scheduled tomorrow at an Ala Moana/Kaka'ako neighborhood board meeting.
Honolulu-based real estate development and consulting firm the MacNaughton Group is making the presentation on behalf of a prospective buyer, according to a spokesman for property owner Wichman Family Trust.
A MacNaughton Group official would not confirm the trust spokesman's claim about the scheduled presentation. The official said MacNaughton Group is not buying the property, but acknowledged that the firm has been working with retailers interested in the site.
"We have talked to a lot of retailers about buying this site, and a lot of these discussions are current," said Jeff Arce, chief financial officer for the MacNaughton Group. "We may be involved on this site, but it hasn't happened yet."
Neighborhood board Chairman John Breinich said he could not disclose information about the presentation or presenter.
Retail analysts said the prospective buyer is Lowe's Companies Inc., the nation's second-largest home-improvement retail chain, which acquired two Eagle Hardware & Garden stores in Hawai'i in 1999 and has been searching for expansion sites.
Tawn Earnest, a spokeswoman for the North Wilkesboro, N.C.-based retailer, would not say if the company is working with the MacNaughton Group or buying the superblock. "It would be inappropriate for me to comment on where we might go," she said.
It was unclear whether a definitive purchase agreement had been signed to buy the property.
The superblock has been the target of keen interest for years, but a series of plans for the project have fallen through. Proposals have included a high-rise condominium, retail/entertainment center, a Home Depot, and a double-decker complex with Wal-Mart and Sam's Club stores.
The Ke'eaumoku site, bordered by Sheridan, Makaloa, Rycroft and Ke'eaumoku streets, has been economically challenging for companies, given the parcel's estimated price of $35 million.
A Lowe's store in Honolulu would strategically position the company to better compete on O'ahu with its biggest rival and industry leader, Home Depot, retail analysts said.
The single Lowe's store on O'ahu, at Waikele Center, is farther from the Island's population center than two Home Depot stores in Iwilei and Pearl City. Both companies have one store each on Maui.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
