Posted on: Friday, May 7, 2004
Beach Walk retail partner named
By Andrew Gomes
Advertiser Staff Writer
The joint-venture agreement, announced yesterday by Outrigger, is another step forward for one of two initial pieces of the Lewers Street project called Waikiki Beach Walk.
"We're really moving forward now," said Mel Kaneshige, Outrigger senior vice president.
The 100,000-square-foot retail and entertainment portion of the project is expected to begin construction in the second quarter of next year and be completed in mid-2007.
A time-share component of Waikikii Beach Walk was announced in January and is on a similar timetable. That part involves selling most of the Ohana Reef Towers Hotel to Orlando, Fla.-based Fairfield Resorts, which plans to convert the hotel's 480 rooms into 193 time-share units.
The two bottom floors of the Ohana Reef are being retained by Outrigger to be included in the retail and entertainment development.
The rest of Outrigger's redevelopment plan includes joining with partners to convert 800 rooms of the Ohana Waikiki Tower and Ohana Waikiki Village hotels into about 200 to 300 condo units for sale to individuals, and building a high-rise with a mix of mostly residential condos, condos for hotel use, hotel units and possibly time-share. This phase is further off.
Conceptual plans for Waikiki Beach Walk — covering an 8-acre site bounded by Saratoga Road, Lewers Street and Kalia Road — were unveiled in mid-2001. Redevelopment work is expected to cost more than $350 million.
For the retail and entertainment component, Gushman will own an undisclosed equity interest and head a development team involving local retail leasing firm Kaulana Corp., and Barbara Campbell, Outrigger's vice president of retail development and leasing.
Retail and restaurant anchor tenants are being sought, although Kaneshige said the discussions are preliminary and haven't yet resulted in any formal commitments.
Kaneshige said he anticipates pre-leasing enough available space this year and early next year to obtain financing commitments that would allow breaking ground by June 2005.
"Outrigger is a strong family-owned company and a world-class partner, and together we're going to reinvigorate the heart of Waikiki," a statement from Gushman said. "We are anxious to bring the area alive with restaurants and shops that will appeal to residents and visitors alike."
David Carey, Outrigger's chief executive officer, said Gushman was selected for his knowledge of the local retail market and development experience.
Gushman, often with partners, has developed more than $1 billion of real estate over the past 25 years, including Waikele Center, an outlet mall in Guam and residential, office and industrial projects. He was named a Campbell Estate trustee in 2000 and is also a director on Outrigger's board.
Kaulana Corp. has had leasing roles in several retail projects, including Aloha Tower Marketplace, Shops at Wailea and Shops at Mauna Lani. Earlier this year, the firm took over leasing for King Kalakaua Plaza and 2100 Kalakaua in Waikiki.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
Kama'aina real estate developer and Campbell Estate trustee Dick Gushman has entered into a partnership with Outrigger Enterprises to build and lease the retail portion of the company's $350 million hotel redevelopment project in Waikiki.
