Hilo Hattie The owner of Hilo Hattie has dropped plans to develop another outlet for the retail chain in Waikiki at the site of the former Hula Hut nightclub to seek a better return from selling the land.
drops plans for
Waikiki outlet
Beach Walk location is put
on the market for $9.9 millionBy Tim Ruel
truel@starbulletin.comHilo Hattie Chairman James Romig has put the 30,376-square-foot Beach Walk site on the market for $9.9 million in fee simple, or nearly $326 per square foot. Romig bought the land last year for $7.45 million, or $245 per square foot, and Hilo Hattie had announced plans for a new 20,000-square-foot store. The outlet was to employ 60 people and open this year.
Instead, Romig has hired real estate firm Colliers Monroe Friedlander to market the land. Romig has gotten offers that could provide a high return, Colliers said.
The land is near the $300 million Waikiki redevelopment project announced last week by hotel management firm Outrigger Enterprises Inc., as well as the Honu Group's 2100 Kalakaua Ave. retail project.
Since buying the land last year, Romig has demolished an older three-story apartment building at the site. He had planned to build another 8,000 square feet of space to add to the 12,600-square-foot Hula Hut building, for a total of 20,000 square feet.The plans and building permits are included with the sale of the property.
Visitor arrivals have turned soft in Waikiki, and slowing retail sales prompted Hilo Hattie managers to side with Romig's decision, said Paul deVille, chief executive of Hilo Hattie's parent company, Pomare Ltd.
"The timing isn't perfect for moving into Waikiki," he said. With all the new developments taking place, it's worthwhile to step back and look for other ways to expand in Waikiki, he added.
Hilo Hattie has seven stores in Hawaii, plus two Island Collections shops, and a total of four stores in California, Arizona, Nashville, Tenn., and Miami. A fifth store is scheduled to open in Orlando, Fla., next year.