Jun 24, 2013, 3:02pm HST Duane Shimogawa Reporter-Pacific Business News
Work on a multimillion-dollar renovation to transform a retail center in Lahaina into The Outlets of Maui, Hawaii’s second outlet mall and first on the Valley Isle, is moving ahead after recently securing a $19.5 million loan for the retail center, whose tenants will include Coach, Brooks Brothers and Calvin Klein.
The existing center, located at the corner of Front and Papalaua streets in Lahaina, will retain the both Hard Rock Cafe and Ruth’s Chris Steak House as anchors. Names of other tenants were not immediately disclosed.
The Los Angeles office of Johnson Capital, a commercial real estate capital advisory firm, worked with the developer, Honolulu-based Honu Group, on the loan for redeveloping the 10-building, 145,855-square-foot mall, which is under a long-term lease with the Harry and Jeanette Weinberg Foundation.
Johnson Capital worked with an unnamed major life insurance company on the loan, which is the second loan that this life insurance company has funded with Honu Group in Hawaii.
Just five years ago, the retail center’s owner and anchor tenant went bankrupt, which sank occupancy to 50 percent, about half of what it once was.
Honu Group, the new developers, have experience in the outlet mall industry, having developed other retail properties on Oahu and Kauai, Johnson Capital noted.
A grand re-opening of The Outlets of Maui is scheduled for later this year with renovation work well underway.
Honu Group did not immediately respond for a request for comment, but Johnson Capital told PBN that the outlet mall is about 85 percent leased, with more tenants in the hopper.
“It’s a pretty good cross-section of tenants with an ice cream shop, a clothing store, a shoe store,” said Eric Salveson, senior vice president for Johnson Capital in Los Angeles. “It will have all the outlet mall tenants [that are seen in other outlet malls].”
Meantime, after the state Land Use Commission shot down the rezoning of land for the proposed Maui Outlets and Piilani Promenade projects, a new mixed-use concept, involving residential and commercial components, has been proposed by the property’s landowners, Dallas-based Sarofim Realty Advisors.
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