Honolulu-based Food Pantry earlier this week acquired the 35,000-square-foot, fee- simple property, at the corner of Kuhio Avenue and Kaiolu, near the former Canlis restaurant site, state land records show.
The property is part a 122,000-square-foot chunk of land that Magoon Estate put on the market in 1995. The estate, which touted the tract as the largest remaining development site in Waikiki, was asking $75 million for the land.
Buzz Wo, Food Pantry's director of real estate, said Food Pantry is leaning toward putting a grocery store on the property but is keeping its option open.
Food Pantry has two small grocery stores in Waikiki, one on Hobron Lane, the other on the Diamond Head end of Kuhio Avenue. Wo said the company hopes to take advantage of the growth on the ewa side of Waikiki, which will benefit from the pending completions of the $250 million state Convention Center and the $40 million King Kalakaua Plaza retail complex.
"We think this property is a good investment," Wo said.
Peter Thacker, president of Earl Thacker Ltd. which served as the broker for Magoon Estate, said the deal is a good sign that local companies are willing to invest in Waikiki. He declined comment on the status of the remaining Magoon properties up for sale.
The property currently is home to an ABC convenience store, the 24-room Hotel Honolulu and an antique gallery, Wo said.
During the past several years, the Magoon Estate has considered several plans for the site, including selling, leasing or redeveloping it. The land is zoned for resort use but, as a condition of the sale, Food Pantry has agreed not to build higher than 50 feet, Wo said.
The property lies near the King Kalakaua retail complex, whose tenants will include Nike Town and Banana Republic. Wo said he believes that complex could be a good complement to Food Pantry's plans for its new property.