New Jersey company might reopen Kilgo's
Allied Building buys Kilgo's and its five leasehold properties
STORY SUMMARY »
A New Jersey company may revive the former Kilgo's hardware and industrial supply store on Sand Island, which closed in April after 61 years.
Allied Building Products Corp., which is purchasing the stock of A.L. Kilgo Co. Inc. and the leasehold rights to five parcels totaling nearly seven acres, is considering reopening the retail store, but revamping operations to focus more on the wholesale supply of building materials.
The company also is considering redeveloping the property, which includes 300,000 square feet of land and 200,000 square feet of building. The leases have 21 years remaining.
Driving the sale is Allied Building's desire to secure long-term leases to operate its subsidiary businesses, which include G.W. Killebrew Co. Inc. -- a wholesaler of dry wall, plastering and interior materials -- and exterior wholesale supplier RSI Roofing & Building Supply.
FULL STORY »
A New Jersey company is buying Kilgo's and its five leasehold properties at Sand Island.
Allied Building Products Corp., which is purchasing the stock of A.L. Kilgo Co. Inc. and the leasehold rights to five parcels owned by HRPT Properties Trust, is considering reopening the retail hardware store, which closed in April after 61 years.
A purchase price was not disclosed; however, the assessed value of the nearly seven acres of land and buildings -- which include the main Kilgo's building, two warehouses in back and a warehouse on the mauka side -- is $25.6 million, according to city records.
The sale is expected to close in September.
Driving the sale is Allied Building's desire to secure long-term leases to operate its subsidiary businesses, which include G.W. Killebrew Co. Inc., which is on a month-to-month lease for 80,000 square feet of space near the Kapalama Military Reservation, said Ritchie Mudd, manager and founder of Allied Building subsidiary RSI Roofing & Building Supply.
Allied Building -- itself a unit of CRH PLC, a Dublin, Ireland, maker and distributor of building supplies -- is considering relocating its existing businesses to the Kilgo's site and redeveloping the parcels, which include 300,000 square feet of land and 200,000 square feet of buildings on Sand Island Access Road, Pahounui Drive, Mohonua Place and Auiki Street.
"They may be looking for subtenants to possibly sublease some of the buildings or redevelop some of the prime properties, especially on Sand Island Road," Mudd said. "They may redevelop it into a retail-wholesale complex."
The properties' ground leases run for another 21 years, he said.
While the company is considering using the Kilgo's name, Allied Building would likely revamp store operations, focusing on wholesale supply of building materials to specialty contractors.
"It's the ideal location because it's situated between the central business district and airport and it's close to the piers," said Mike Hamasu, Colliers Monroe Friedlander director of consulting & research.
The Sand Island-Kalihi area is Oahu's largest industrial district with 9.6 million square feet of space. Kilgo's occupied 122,000 square feet, and as a result of its closing the district's vacancy rate jumped to 3.19 percent -- the highest since 2002.
Allied Building bought RSI Roofing & Building Supply, an exterior wholesale supplier, in November. RSI Roofing leases 100,000 square feet of space on Sand Island Access Road from the state Department of Land and Natural Resources.
In 1993, the company bought G.W. Killebrew -- a wholesaler of dry wall, plastering and interior materials -- which has a total of 100,000 square feet of space at Sand Island, including 30,000 behind Kilgo's.