StarAdvertiser-article

September 21, 2015

Macy’s Kailua exit could mean big bucks for family

The Mahoes hope to sell their piece of the parking lot for $6.2M

By Andrew Gomes

The recent decision by Macy’s to close its store in Kailua after the upcoming holiday season will be a loss for many shoppers. But for one local family the departure could produce a multimillion-dollar windfall.

The family of the late Howell Kaliula Mahoe Sr. owns an odd piece of the Macy’s property and has decided to put it up for sale.

For more than 60 years, the Mahoe family has been a landlord to the department store that opened in 1946 as Liberty House and was converted to Macy’s in 2006. The family owns a midsection of the store’s parking lot, an area that contains about 90 of the 180 stalls serving shoppers.

After Macy’s decided not to renew its lease, Mahoe family members decided to put the 32,000-square-foot parcel on the market. It’s listed by brokerage firm Newmark Grubb CBI Inc. for $6.2 million.

Walton Mahoe said his father received the property in the 1940s or 1950s in a trade with Harold Kainalu Long Castle, the man who transformed Kailua from an agrarian outpost to a thriving residential community. Mahoe said his father owned land in Maunawili that Castle wanted, and agreed to accept what became a piece of Kailua’s commercial real estate core.

“Whatever (development deals Castle) made, we were part of it, too,” Mahoe said.

Mahoe’s father lived on Oneawa Street. He died in February at 82.

Macy’s could have extended its lease on the Mahoe family property until 2027. Not extending presented a good opportunity to sell the land, especially given that many parts of the town are undergoing redevelopment that includes a Target store that opened in March and the Ka Malanai condominiums nearing completion.

“We’d rather not sell, but the winds of change are there,” said Mahoe, who is a trustee of the property along with his brother, kumu hula Howell K. “Chinky” Mahoe Jr.

Alexander & Baldwin Inc., a Hawaii real estate and development firm that bought 70 percent of the commercial-zoned land and 90 percent of the retail property in Kailua from a company and foundation created by Castle, owns most of the Macy’s site, including the 59,000-square-foot store and two sides of the rear parking lot.

A&B has said it is considering options to make the best use of the Macy’s site with a goal of retaining the building’s character.

A&B is considered to be an obvious potential buyer of the Mahoe property, given that it owns all the land on every side of the Mahoe parcel. The Mahoe parcel has easements on adjacent A&B land for access.

The parking lot behind the Macy’s building is convenient but not necessary for any future tenants, in part because there is a three-story, 238-stall parking garage next door that was built in 2004.

Vanessa Kop, a broker with Newmark Grubb CBI, said retail and restaurant development are among considered uses for the Mahoe parcel, which is zoned for community business use and has a 40-foot height limit.

Kop said interest has been high from prospective buyers. “We do have some pretty good offers,” she said.

http://www.staradvertiser.com/businesspremium/20150921_macys_kailua_exit_could_mean_big_bucks_for_family.html?id=328465951

PacificBusinessNews-article

September 21, 2015

Family lists lot behind Kailua Macy’s store for $6M

A Kailua family that owns a 32,000 square-foot parcel behind the Macy’s department store that is closing next year has put the land — a parking lot surrounded by land owned by Alexander & Baldwin Inc. — on the market for $6.2 million.
The Honolulu Star-Advertiser reports the Mahoe family, whose trustees areWalton Mahoe and his brother, Howell K. “Chinky” Mahoe Jr., decided to sell the odd lot — which was given to their father, Howell K. Mahoe, by Harold K.L. Castle in the 1940s or 1950s as part of a trade — after Macy’sdecided to close its Kailua store early next year
The land was not included in A&B’s $373 million purchase in 2013 of the Kailua commercial portfolio and other lands from Kaneohe Ranch and theHarold K.L. Castle Foundation.
The listing with Newmark Grubb CBI Inc. notes that the commercial lot is zoned for retail and is strategically located between the new Whole Foods Market and Target stores.

http://www.bizjournals.com/pacific/blog/morning_call/2015/09/family-lists-lot-behind-kailua-macy-s-store-for-6m.html

KHON-article

September 14, 2015

‘Unsightly’ structure in Kailua protects important water pressure valve

By Howard Dashefsky

Here on Oahu, Kailua is undoubtedly one of the most beautiful spots in the state. But there is, however, a not so sightly structure going up right alongside a busy roadway that has many people wondering what it is?

Driving up Kailua Road, it’s almost impossible not to notice at the bottom of a beautiful and towering banyan tree.

“I drive by it just about every day,” said resident Jason Cuttida. “I don’t know what it is, but I know it’s been going on for a little while, and it’s kind of an eyesore. It’s not very attractive and it’s very conspicuously located here, so that’s a concern to us.”

Like many Kailua residents, Diane Hardy of the Lani-Kailua Outdoor Circle was left to wonder what the structure is. While not very big, it’s definitely an eye catcher — for all the wrong reasons.

But she said “we understand the reasons that this has to be here.”

So what is it? The Board of Water Supply said it’s a project to replace an aging pressure valve that controls a significant amount of water flow into Kailua. The old valve was underground, but the new valve will be above ground.

BWS spokesman Shawn Nakamoto said that “if it’s underground, and we do need to make an adjustment because there’s abnormally high pressure or there’s a main break could be that much harder to get to, this was an opportunity to move it above ground for both safety and maintenance.”

While having the valve above ground makes it’s easy for crews to work on, it also makes it an easier target for vandals, which is why this structure is being built around it.

But is there a reason it has to be right there? “The two mains that were in that area have been realigned, so that particular location is where the two mains meet,” replied Nakamoto.

“I think they looked at other areas, but they want to preserve the tree, and that was really the best opportunity and the best placement for the unit that houses the valve.”

“We are concerned about the look of it and wanting to make it maybe blend in a little better,” said Hardy, “and not be so conspicuous.”

Although it’s an eyesore now, Nakamoto promises once it’s finished, the Board of Water Supply will paint the building green, replace the grass, and then landscape around it.

She also said she’s happy to work directly with the Lani-Kailua Outdoor Circle, which has a strong connection to this specific banyan tree, which is over 70 years old.

Nakamoto said the project is taking longer than expected because of the recent heavy rains and because it required a lot of coordination with both the city and the state.

http://khon2.com/2015/09/14/unsightly-structure-in-kailua-protects-important-water-pressure-valve/