Thursday, May 2, 2019

Kalakaua Plaza in Honolulu, Hawaii explored.

Kalakaua Plaza was built as a 4-story building and was designed by Architects Hawaii Ltd. in 1997 for about $45 million. The building itself is 82,390 square feet. 98% percent of this building was built using concrete. (Ref: https://www.hawaiibusiness.com/good-locations-lots-of-space-but-unused-for-years-and-years/)

This lovely shopping plaza included a variety of shops and businesses such as the Official All-Star Café, a coffee shop, a clothing store, and a Banana Republic store. Kalakaua Plaza once housed the former Niketown complex. A subterranean parking garage was built for public usage in later years. 30 feet of space was dug for 2 levels of underground parking.


In 2007, Kalakaua Plaza was listed as being “stocked with the latest fashions”. Banana Republic and Niketown were the top selling stores who leased from Kalakaua Plaza. However this would not last long for a variety of reasons. (Ref: Fodor's 2007 Hawaii)

Kalakaua Plaza tried to capitalize on the demand for space in the Waikiki neighborhood during the boom years. They thought this would be enough to draw tourists to walk several blocks away from their hotels. However competition from retailers outside of the Waikiki neighborhood drew tourists towards those storefronts instead. The fact that most of these stores were national retail chains did not help. Overall it was a change in shopping habits that caused a decline for both Kalakaua Plaza and Niketown.

"Monthly rents along Kalakaua range from as high as $25 per square foot near the center to $8 on the outskirts. While $8 on Kalakaua might seem attractive, it is more than double what a business owner can get in a residential shopping area on Oahu.  The relatively high rent and lower foot traffic in the remote areas of Waikiki restrict what type of businesses can succeed.” says Kim Scoggins, Colliers vice president.

(Ref: http://www.worldpropertyjournal.com/us-markets/commercial-real-estate-1/real-estate-news-waikiki-retail-market-king-kalakaua-place-niketown-hawaiian-island-creations-teddy-bear-world-colliers-monroe-friedlander-inc-kalakaua-avenue-2917.php)

Niketown closed in 2009 and the tenant lease was not renewed. Niketown occupied 35,000 square feet on there guided property prior to closure. A drop in pedestrian traffic and change in shopping habits is the reason why Niketown closed down. Both Niketown and Banana Republic were original tenants.


In 2010, Los Angeles-based developer Robertson Properties Group purchased the remaining property of the Kalakaua Plaza building for $10 million. According to tax records, that parcel has a total assessed value of about $3.1 million. (Ref: https://www.bizjournals.com/pacific/blog/morning_call/2015/12/ownership-change-for-waikikis-former-nike-town.html)

In 2012, the property was advertised for lease by its former owner Robertson Properties Group. In 2015, plans were announced by Star Advertiser for converting the Kalakaua Plaza into a seven-story, 230-room hotel tower. The owners of Kalakaua Plaza announced plans to redevelop its retail center into a hotel. The idea received strong support from the Waikiki Neighborhood Board. (Ref: https://www.staradvertiser.com/2016/10/11/breaking-news/king-kalakaua-plaza-hotel-gets-support/)

Oceanfront Hawaii acquired Kalakaua Plaza from Robertson Properties Group in early 2016. The owners of Kalakaua Plaza announced plans to redevelop its retail center into a hotel. Today Oceanfront Hawaii owns the property and is looking for any potential businesses to have as tenants on a lease for.

Kalakaua Plaza is located at 2080 Kalakaua Avenue, Honolulu, Hawaii, US 96815.

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