Posted on: Friday, August 15, 2003

Trio of firms buys Waikiki property

By Andrew Gomes
Advertiser Staff Writer

Three local real-estate investment and development firms have teamed up to acquire a relatively small but expensive piece of Waikiki property for renovation and redevelopment into retail stores.

The Shidler Group, Watumull Properties and Bill Mills Development Co. paid Kyotaru Hawaii Corp. $10.6 million for three largely vacant retail spaces at 2150 Kalakaua Ave. plus a rear parking lot just diamondhead of 2100 Kalakaua, a retail townhouse housing luxury retailers including Gucci, Chanel and Tiffany & Co.

Larry Taff, managing partner of the Shidler Group, said the team plans to make major renovations to storefront and interior spaces, creating room for six or seven mid-market retailers.

Only one tenant, an upscale sandwich shop, has signed on to date, though Taff said the partners have commitments for all of the spaces, with numerous backup offers.

"We are excited to be able to acquire a property right in the heart of all of the new development going on in Waikiki," he said. "This further emphasizes our confidence in the long-term health of Waikiki."

The new retail project will be named The Shops At 2150 Kalakaua and is anticipated to be open before Christmas.

A 21,000-square-foot parking lot on Lau'ula Street has redevelopment potential, though Taff said there are no current plans to transform the lot.

"It's not the most huge parcel, with the setback requirements," he said. "We'll have to find out what its highest and best use is."

Kyotaru Hawaii closed its flagship restaurant in Waikiki two years ago as part of a financial restructuring by the company's parent in Japan.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.