Firm hired to oversee Waikiki mall plan
By Andrew Gomes
Advertiser Staff Writer
Kamehameha Schools has picked California shopping center developer The Festival Cos. to execute the Hawai'i trust's $55 million renovation plan for the Royal Hawaiian Shopping Center in Waikiki.
The Los Angeles-based company, which will also take over management of the 293,000-square-foot mall, was selected over several firms from Hawai'i and the Mainland competing for the job.
Susan Todani, director of investments for Kamehameha Schools, said Festival officials expanded on previous conceptual work for the project and showed great sensitivity and understanding of the trust's cultural and historical stewardship of the site.
"We really felt comfortable with them," Todani said. "We believe that Festival will assist (Kamehameha Schools) in its mission to appropriately steward this asset and restore the center to its former prominence in Waikiki."
The long-planned overhaul of Waikiki's largest retail complex is expected to begin in January and be completed in December 2005.
Festival has developed more than $1.5 billion in retail property, including recently completed retail and entertainment center Buena Park Downtown across from Knott's Berry Farm in California.
Rosalind Schurgin, the firm's executive vice president, said in a statement the company views the project as an opportunity to restore the center as a landmark destination in Waikiki.
"We will carry the torch of the (Kamehameha Schools) mission, which is also our mission," she said.
The center is the single most important real estate asset in terms of value, revenue and cultural history for the $5.5 billion nonprofit trust established to educate children of Hawaiian ancestry.
The renovation will be the first significant upgrade for the 24-year-old mall, which is profitable but has struggled in recent years and has long been criticized for its concrete fortress look.
According to leasing agent Colliers Monroe Friedlander, the mall is 40 percent vacant. Colliers was hired in December to be the exclusive leasing agent for the center, and will work with Festival to add tenants.
Festival in July will take over property management from Kamehameha Schools' for-profit subsidiary Pauahi Management Co. The trust said Festival expects to retain many Pauahi Management employees.
Kamehameha Schools, which had considered a joint-venture partner for the project, is paying Festival an undisclosed fee for its work. The trust will maintain complete ownership of the mall.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
