Ex-Penney space snatched up

By Andrew Gomes
Advertiser Staff Writer

Hawai'i shoppers won't see new stores opening at the former J.C. Penney spaces at O'ahu's two largest malls until next year, but local and national retailers have reserved most of the available space.

Most of the space at the former J.C. Penney store at Ala Moana has been reserved for new stores, the mall's owners say. Advertiser library photo • Jan. 9, 2003

The identity of prospective tenants is not being disclosed except for Linens 'N Things and Cost Plus World Market, which the owner of the Pearlridge Penney space said signed leases — the only two binding deals for the Penney space at either mall.

Still, the commitments in hand, which represent the equivalent of about half the size of Windward Mall or nearly as much as all of Royal Hawaiian Shopping Center, shows how coveted the former Penney space has been.

"That's real quick," said Stephany Sofos, a real estate consultant who has helped retailers lease space. "The locations are going to become an integral part of the centers."

Space vacated by Penney at Prince Kuhio Plaza on the Big Island and Queen Ka'ahumanu Center on Maui were acquired earlier this year by Macy's, which is in the midst of expanding its presence at the two Neighbor Island malls.

At Pearlridge, demolition work at the 130,000-square-foot Penney space is scheduled to begin in two weeks, according to Joett Colgan, spokeswoman for INspiration Furniture, which bought the Penney space in November.

Colgan said the home accessories retailer Linens 'N Things and Cost Plus, which sells unique imported items, should open in March or April, taking a combined 52,000 square feet of the 65,000-square-foot ground-floor space.

Toni Vardiman, assistant to the chairman of Linens 'N Things, said the retailer has considered a Pearlridge store but has not signed a lease. A Cost Plus spokesperson could not be reached yesterday.

Another three to seven tenants, some of whom have signed letters of intent, are being sought for the remaining Penney space at Pearlridge, Colgan said.

"Right now it's choosing the mix that will be a positive addition to the mall," she said. "We've had such a good response."

At Ala Moana, mall owner General Growth Properties is pushing hard to sign leases in anticipation of opening about 30 new stores next year inside the 220,000 square feet of former Penney space.

But there is more complicated construction work to make the space ready, including building entrances and walkways on the mall's third level.

New store configurations won't be decided until tenants have signed leases, leaving the spaces in play until then, said Kay Day, General Growth regional vice president for leasing.

Ala Moana also plans to expand the availability of mall-level space adjacent to the former Penney store by taking back some of the space occupied by Shirokiya next door.

Most of the Shirokiya store will remain, according to store general manager Walter Watanabe, who said the retailer of Japanese goods expects to extend its lease at the mall for another 15 years.

Occupying some of Shirokiya's space will be Maui Divers, which plans to open a store next summer.

"We've been wanting to get a location in Ala Moana Center for some 15 years, and we kept holding out for a mall-level store," said Robert Taylor, Maui Divers chief executive officer. "It's finally our time."

Leasing experts said other retailers that General Growth may be seeking to add at Ala Moana could include Pottery Barn, Crate & Barrel, Price Busters, home furnishings by Macy's and electronics retailer Best Buy. Ala Moana has previously said the stores will range from luxury to value merchandise.

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