Thursday, July 9, 1998


Post Office
mall to feature
local goods

The downtown Galleria's
developers plan a section
devoted to isle designs

By Jerry Tune
Star-Bulletin

Tapa

Developers of the $57 million Galleria shopping center project at the downtown Honolulu Post Office have added a new wrinkle to their plans -- a 15,000-square-foot area to feature of local products.

The "Made in Hawaii Collection" will be part of the second phase of the Galleria project, and will open in late 1999, said Russell Allen and Harold Spector, the principals in USPO Galleria LLC.

"We want the very best of Hawaii-made products," Spector said.

Available spaces in the third-floor, Hawaii-theme area can be small -- even 50 or 100 square feet -- to accommodate small businesses, Allen said.

Tenants who have signed letters of intent to lease include Designs by Puamana Crabbe, which makes Hawaiian quilts and fashions for hula halau and weddings. The plans include weekly Hawaiian fashion shows, Allen said.

"I like the idea that they will feature designers," Crabbe said. "I'll be working on a new look for the international travelers."

Crabbe said she will retain her shop at 2909 Waialae Ave., where she has operated for nearly 10 years.

"We think this idea will appeal to the westbound tourists from the United States mainland," Allen said. He sees the third-floor space as good for small businesses that make everything from koa cabinets to Hawaiian quilts.

Construction on the first phase should start in August, Allen said. This involves interior remodeling of the existing building on the King Street side of the post office.

The second phase, which involves the Queen Street side of the Post Office complex, will be completed late next year, he said.

The Galleria will occupy 300,000 square feet and the Postal Service 55,000 square feet, both owning space under a condominium agreement.

The Galleria will include a duty-free shopping area, wedding chapel, 100 or more boutique shops and three theme restaurants -- Star's Restaurant, the Wall Street Cafe and the Living Seas Cafe & Microbrewery.

The front portion of the post office, near King Street, was constructed in 1921-22 in the Spanish colonial revival style. The back portion, on Queen Street, was constructed in 1930.

Financing for the project has been arranged by Sovereign Capital Resources of Los Angeles from a undisclosed mainland lender and escrow will close Aug. 14, said David Buckanavage, one of Sovereign's owners and managing directors. Insigna/ESG Capital Advisors of New York are financial advisers for the project.



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