Despite a global economic downturn, a California-based boutique real estate firm owned by the family that founded Public Storage Inc. is forging ahead with plans to build a new retail complex in Waikiki.

American Commercial Equities LLC of Malibu, Calif., plans to open a two-story building on a vacant lot adjacent to the former flagship store of Local Motion Inc. on Kalakaua Avenue, which it bought last year for $15 million. That building now houses ING Direct bank.

The new retail center, expected to measure 14,000 square feet, is slated to open in late 2009, according to Marvin Lotz, company president. The cost of the project hasn't been determined.

“;We're long-term holders of real estate and we believe in Hawaii,”; he said. “;We have excellent locations and we're very patient investors. (The financial crisis) doesn't affect development; it has no impact on our ability to proceed with our transactions. There is no financing on any of our properties in Hawaii.”;

American Commercial Equities bought the site at 1944 Kalakaua Ave. for $6.5 million in July. The developer has hired architectural firm, Eight Inc., CB Richard Ellis as the leasing broker and CM&D to manage the project.

It also purchased last year the 62,000-square-foot Aina Haina Shopping Center in East Honolulu and is looking to increase its Hawaii portfolio by acquiring other prime sites statewide.

“;Anything that's in the right location, we're willing to look at,”; Lotz said.

The firm hasn't secured tenants for the new retail complex, though it has attracted great interest from prospective tenants, he said.

The company, which specializes in retail acquisitions and management, is led by founder by B. Wayne Hughes Jr., the son of Public Storage billionaire Bradley Wayne Hughes. It owns 61 other retail properties in California.