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The Honolulu Advertiser
Posted on: Thursday, May 16, 2002

Prime Waikiki retail site up for auction

By Dan Nakaso
Advertiser Staff Writer

The property at 2186 Kalakaua Ave. is billed as "Waikiki's Greatest Retail Location." The site, occupied by a Burger King restaurant, will be auctioned June 4. The restaurant's franchisee has filed for Chapter 11 bankruptcy protection.

Richard Ambo • The Honolulu Advertiser

The leasehold interest in a small but desirable piece of Waikiki real estate where a Burger King sits will be auctioned through bankruptcy court proceedings June 4, with the asking price at $2 million.

The move comes after the franchisee of about 20 Hawai'i Burger King restaurants and its California parent company last year filed for Chapter 11 bankruptcy protection.

And it means that a 2 1/2-story space at the corner of Kalakaua Avenue and Lewers Street will be on the market.

"It's a great location," said Rick Cassiday, a consultant to Prudential Locations market research who is not involved in the sale. "And it looks to be a good deal."

The property, which is being offered through Kahawai Development Co. Ltd. and Sofos Realty Corp., sits at 2186 Kalakaua Ave., near Planet Hollywood, Louis Vuitton, the Royal Hawaiian Shopping Center and other prominent businesses.

"The location, location, location is the greatest," said Steven Sofos, president of Sofos Realty. "It's right smack on Lewers, right next to everything."

The Burger King space is about 3,100 square feet on the first floor, another 3,200 of square feet on the second floor and a mezzanine. The monthly base rent is $52,117 with the leasee paying all property expenses. The lease would run through 2008, with two, 10-year options.

Representatives for Hawaii Cimm's Inc., which franchises the Hawai'i Burger Kings, declined to comment on the auction. Officials for Cimm's Inc. of Glendale, Calif., did not return telephone calls.

The Burger King site offers "a small footprint," Cassiday said. "It is somewhat restrictive. But if it's done right, a high-end retailer could do well."

Reach Dan Nakaso at dnakaso@honoluluadvertiser.com or 525-8085.