Macy’s Kailua closure leaves prime real estate opening for possible replacement tenants
By Duane Shimogawa
News of the closure of Macy’s in Kailua, first reported by PBN, opens the floodgates of speculation as to who will replace the Cincinnati-based retailer. We spoke with a number of experts on the area for their thoughts.
Matthew Bittick, president of Honolulu-based Bishop Street Commercial LLC, who lives in Kailua, told PBN Friday that the 61,577-square-foot building along Kailua Road sticks out like a sore thumb.
“Any improvement will be a good thing for Kailua’s image,” he told PBN in an email. “Macy’s has been a great tenant for the area for many years, however, it needs to be redeveloped.”
Bittick, who handles retail real estate deals, said that a big box would not win over the locals in Kailua.
“Demolish the existing building and multi-tenant the area with shops and restaurants, and perhaps, some outdoor seating for the residents and visitors to congregate,” he said.
After Macy’s ground lease ends on Dec. 31, 2015, the landowner, Alexander & Baldwin Inc. (NYSE: ALEX) subsidiary A&B Properties Inc., is expected to take ownership of the building.
Macy’s (NYSE: M), through a spokeswoman, had previously told PBN that the store will remain open through early 2016. It's likely the store will continue on a month-to-month ground lease through early 2016.
Cynthia Manley, president of the Kailua Chamber of Commerce and a Kailua resident, told PBN Friday that in place of Macy’s, she would like to see a family-friendly environment that will add to the shopping experience for the area’s residents and visitors.
“Whenever a retailer offers an opportunity to local residents it’s a win-win for everyone,” she told PBN in an email. “Global Village, [a current women’s retailer in Kailua] frequently showcases resident items. Years ago, when my daughters started a clothing line, Global Village was the first to give them space in the store and even held a mom-and-daughter fashion event in the parking lot. Businesses in Kailua are growing and changing as the need arises.”
Jon Moyer, director of asset management in Kailua for A&B Properties, told PBN Friday that at this point, A&B is thinking about a combination of restaurant and shopping options for the site.
The building that Macy’s occupies at 573 Kailua Road was built in 1946 as a Liberty House store. A&B Properties acquired the leasehold interest in the property in 2013 as part of a bigger $375 million purchase of most of the commercial town core of Kailua and other Hawaii properties from Kaneohe Ranch and Harold K.L. Castle Foundation.
Macy’s has about a dozen stores in Hawaii and most recently closed its Downtown Honolulu location, which was replaced by a Walmart store.
In a reader survey on PBN’s website, posted Friday morning, a majority of voters says another retailer should be inserted in Macy’s place. Readers top choices for brands they'd like to see were Crate & Barrel, Ikea and T.J. Maxx.
http://www.bizjournals.com/pacific/blog/2015/08/macy-s-kailua-closure-leaves-prime-real-estate.html
http://www.bizjournals.com/pacific/pulse/survey/what-should-alexander-baldwin-do-with-the-macys-building-in-kailua-after-the-store-closes/17917202
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