Activity Strong for $75M Theater Redevelopment

HONOLULU-A three-building theater property here that shut down in 2002 is being redeveloped by Robertson Properties Group of Los Angeles, the real estate affiliate of the long-time property owner. The $75-million endeavor includes repurposing two of the buildings totaling 40,000 sf and replacing the third with a new two-level 30,000-sf specialty retail center that will be under construction this spring. An existing 420-slip parking structure on the site will supply the parking for the project. Early tenant interest has been strong for all three buildings. Robertson Properties principal Greg Swedelson tells GlobeSt.com that the new retail building is 100% pre-leased to five tenants. Ripcurl, a surf shop, last week committed to the last available unit in the new building, a 2,400-sf street-level space between Footlocker (5,500 sf) and Whaler’s Market (6,300 sf). The second level will house a 7,000-sf California Pizza Kitchen and a 5,500-sf Steak & Seafood restaurant. The new center also will be home to several cart vendors that will tie the property to Duke’s Lane, an open bazaar next door to the center.The 14,000-sf multilevel former IMAX theater building on the property is being renovated for use as an entertainment venue. Swedelson says negotiations are underway for “a Cirque de Sole-type use.” The third building, a 26,000-sf space fronting Seaside Avenue on the northwest portion of the property, will hold a big-box retailer of some sort. Swedelson says he is in talks with a potential user and expects to have a letter of intent soon. Mark Bratton and Jon Eric Greene of Colliers Monroe Friedlander have the leasing assignment for all three buildings.Swedelson says the property–located along Kalakaua Avenue, Honolulu’s popular tourist destination and retail district–has an unparalleled customer base, with foot traffic on Kalakaua exceeding 25,000 people per day. He admits the highest and best use is probably a much higher density project, but for now the firm has elected to go with a more modified project. “Rents have come back up to very high market rate,” he says. “It’s ridiculous to have small theater not active.”