Posted on: Monday, November 8, 2004
Sale, renovation planned for former NCR building
By Andrew Gomes
Advertiser Staff Writer
A partnership involving the head of local contractor U.S. Pacific Construction is exploring plans to purchase and renovate the former NCR building at 720 Kapi'olani Blvd.
Cooke Clayton LLC has a preliminary agreement to buy the mostly vacant five-story office complex from nonprofit labor welfare organization Unity House, which bought the property for $5 million in 1998 from NCR Corp., an Ohio-based firm once known as National Cash Register Co.
Chris Deuchar, development coordinator for a development affiliate of U.S. Pacific, said that although there are unresolved issues with the building that could derail the deal, a purchase could close early next month.
A purchase price was not disclosed.
Cooke Clayton, formed by U.S. Pacific President Bill Deuchar, initially envisioned remodeling the building and using part of it as a new headquarters for the Honolulu-based construction firm, but overwhelming interest from other prospective users have led to a reassessment of plans.
"Frankly, we've had so much interest that we're trying to figure out where we'll fit and how we want to use the building," Chris Deuchar said.
Local real estate brokers said a renovated NCR building likely would be attractive to automobile dealers because the property is in the midst of what in recent years has evolved into a concentration of luxury car dealerships including Jaguar, Mercedes-Benz, Lexus and BMW.
"There's a lot of interest in that," said Dennis Enomoto of PY Inc., which represented Unity House in the pending sale. Enomoto said the U.S. Pacific-related partnership is an ideal purchaser because the building needs significant upgrades.
"It's an excellent opportunity for them," Enomoto said.
U.S. Pacific has been involved in renovation projects including Turtle Bay Resort, the Renaissance Ilikai Waikiki Hotel and the Ohana Hobron Hotel condo conversion. The company is helping build the Waikiki high-rise condo Lanikea and is getting ready to start a 160-unit condo project on Kaua'i.
The former NCR building, a shabby looking brown-and-cream colored complex fronting Kapi'olani between Cooke and Clayton streets, was built in 1958 and expanded in 1963, according to city records. NCR bought the property in 1974 for $1.75 million.
Unity House bought the property in 1998 from NCR, which for years had tried to sell the building. Unity House considered moving its operations to the building, but held the property mainly as an investment, according to a spokesman for the organization.
Over the past several years, a few tenants rented space in the building, but it has been mostly vacant.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
