Beall catches Waikiki wave
The developer has three retail projects underway to capitalize on the district's overhaul
Beall Corp. is tossing its hat into the ring of Waikiki retail.
Riding the momentum of such redevelopments as Outrigger Enterprises Inc.'s Beach Walk project, the Royal Hawaiian Shopping Center and Waikiki Theatre 3 redevelopments, Beall Corp. is building two new retail projects and renovating another one along Kalakaua Avenue.
BEALL CORP. IN WAIKIKI
» 1925 Kalakaua
Size: 7,000 square feet
Opening: February 2007
» 2113 Kalakaua
Size: 5.900 square feet
Opening: Spring 2007
» 280 Beach Walk
Size: 17,500 square feet
Opening: Summer 2008
"Basically what we're doing is continuing the shopping experience down Kalakaua Avenue," said Cory Beall, vice president of Beall Corp.
The company is banking on the strength of the retail market in Waikiki, where asking rents have breached $30 or more per square foot per month.
Along with Kalakaua Pavilion at 1925 Kalakaua Ave., Beall Corp. is also building a new retail center at 2113 Kalakaua Ave. at Saratoga Avenue and a brand-new retail center at 280 Beach Walk.
Beall Corp. developed Waterfront Plaza or "Restaurant Row" in Kakaako, where it still owns the Row Bar, as well as Kings' Shops in Waikoloa on the Big Island.
But recently the changing real estate market in Waikiki has captured Beall's attention.
Kalakaua Pavilion is slated to open first, in February. Beall Corp. bought the 7,000-square-foot property in August and realigned the spaces so that there are four retail shops fronting Kalakaua Avenue.
ABC Stores will open a new 2,000-square-foot store, along with previous tenants Subway Sandwiches and gift shop Espace Mode. One retail space remains open.
"It's a strong neighborhood and the retail we're providing is intended to target the surrounding neighborhood," said Beall. "That block, bordered by Ala Moana and Kalakaua and all the way to the canal, is the most densely populated block in Hawaii."
Above the retail space is the Pavilion, a residential condominium.
Beall said new developments in the area, such as Watermark Waikiki and Allure Waikiki (slated for the former Wave Waikiki site), should add plenty of traffic to the retail project.
Retail rents at Kalakaua Pavilion will be set between $5 to $8 per square foot per month.
Closer to central Kalakaua, Beall Corp. is planning two projects that straddle Outrigger's Beach Walk project -- 280 Beach Walk and 2113 Kalakaua Ave.
At 2113 Kalakaua Ave., formerly the site of Nippon Rent-a-Car, Beall Corp. is redeveloping the site into a new, single-level retail center. It will be a little more upscale than its next-door neighbors, but not as upscale as 2100 Kalakaua Ave. across the street.
Beall said the corporation is seeking national lifestyle-brand tenants to fill the six spaces, when the project is expected to be done in spring 2007.
The spaces will measure between 500 square feet to 700 square feet, and should command more than $20 per square foot per month.
Beall Corp. is also developing a retail center at 280 Beach Walk, a vacant lot currently operated as a parking lot by AmeriPark.
Beall bought the lot in the summer for about $15.3 million. It is zoned resort commercial, with a height limit of 300 feet.
But Beall is only planning a single-level retail project offering a total of 17,500 square feet for about seven stores. The spaces will be much larger, between 1,500 to 3,000 square feet. As with 2113 Kalakaua Ave., Beall Corp. will seek national brand tenants to fill the spaces.