Oahu theater accepts $2.45M to end lease


POSTED: Thursday, June 11, 2009

Pacific Office Properties Trust Inc. agreed to offer Hollywood Theaters a lease termination fee of $2.45 million, according to the trust's most recent quarterly filing.

The trust is finalizing negotiations with prospective tenants to fill the 21,541-square-foot space now occupied by the discount multiplex theater at Waterfront Plaza, more popularly known as Restaurant Row.

The nine-screen theater's last show will be on Aug. 9.

Pacific Office Properties is expected to announce the new tenants for the space some time next week.

Scott Wallace, president of Hollywood Theaters, had an original lease dating back to 1993 that was good for another 40 years at just $1 a year while providing theater-goers with free parking.

The trust said the lease terms for the theater depressed the value of the property and was a drain on parking revenue. Terminating the lease has been on the drawing board since The Shidler Group (which later formed Pacific Office Properties) acquired Waterfront Plaza in 2004.

Besides Waterfront Plaza, Pacific Office Properties owns the Davies Pacific Center, the Pan Am Building, First Insurance Center, the Clifford Center and the Pacific Business News Building.