Haseko signs
superblock project deal

A mainland developer will seek tenants
for an all-retail complex at the
Keeaumoku St. site

By Rick Daysog
Star-Bulletin

A mainland shopping center developer is bringing new life to the long-dormant Keeaumoku Street superblock.

Cleveland-based Forest City Enterprises, one of the largest commercial developers in the nation, has reached an agreement with Haseko Hawaii Inc. to serve as a joint development partner of the vacant 10-acre site, said Vicki Gaynor, community and government affairs manager for Haseko.

Haseko holds the 65-year master lease on the property at Keeaumoku and Makaloa streets, which has been stalled since 1994 due to the weaklocal economy, the sluggish luxury condominium market and soil contamination problems.

"A lot of people think that we are letting Keeaumoku just sit there," Gaynor said. "But we have been continually looking at what would work at that site."

According to Gaynor, Forest City conducted a six-month feasibility study on the project. She said that the company has received substantial interest from potential retail tenants, which she declined to identify.

"They're interested in what's going on in Hawaii and they want to be a part of that," she said.

According to Gaynor, the developers will focus on retail development. During the late 1980s, Haseko planned to build a $400 million retail, luxury condominium and office development at the site. The property sits on leasehold land owned by the Wichman family trust.

Haseko had an agreement with Michigan mall developer Taubman Realty Group L.P. to explore retail development on the site several years ago.

Taubman tried unsuccessfully to attract department store chains like Nordstrom Inc., which later chose to build its store at nearby Ala Moana Center.

Forest City, founded 77 years ago, is a major mainland mall developer with assets of more than $2.7 billion. The publicly traded company owns or operates about 30 shopping centers, 20 office buildings and 5 hotels nationwide.

The company developed the Galleria at Sunset in Las Vegas and recently was selected as the developer of a $120 million hotel, cinema and retail complex in New York as part of the city's revitalization of Times Square.