HONOLULU (AP) — A planned $500 million regional shopping center in Kapolei reached a milestone Monday with the signing of a 65-year land lease with the state Department of Hawaiian Home Lands. ADVERTISING HONOLULU (AP) — A planned $500 million
HONOLULU (AP) — A planned $500 million regional shopping center in Kapolei reached a milestone Monday with the signing of a 65-year land lease with the state Department of Hawaiian Home Lands.
An affiliate of Florida-based DeBartolo Development started the lease for the planned development called Ka Makana Ali’i.
“We have worked closely together with DHHL to ensure this project delivers lasting value to not only the Native Hawaiian community, but also the residents of West Oahu,” Edward Kobel, president and chief operating officer of DeBartolo Development, said in an announcement. “The long term lease of the Ka Makana Ali’i site will create a dependable revenue stream for native Hawaiian beneficiaries for decades to come.”
A condition of the lease sets a deadline for the developer to obtain construction financing. The department agreed to give the developer until May 31 to obtain a loan expected to be in the neighborhood of $167 million from a national lender.
The developer’s financing and construction plan call for a $285 million first-phase construction of 750,000 square feet. The first phase would include Macy’s, Forever 21 and H&M stores, a cinema and a hotel on 50 acres with an opening in 2016.
A second phase would add 700,000 square feet for a second hotel, office space and more retail space.
The development is projected to require 3,000 construction jobs. Grading and the clearing of land are scheduled to begin this month.
Construction of both phases of development would make Ka Makana Ali’i Hawaii’s third-largest shopping center and the first regional mall built on Oahu in more than 30 years.
Ala Moana Center is about 2 million square feet, and Pearlridge Center is 1.2 million square feet.
Lease payments from Ka Makana Ali’i would be the biggest source of income for the Department of Hawaiian Home Lands, which provides homes for Native Hawaiians.
The 65-year lease for Ka Makana Ali’i will generate base rent of $400 million and a percentage of tenant rent that could add another $400 million, according to DeBartolo Development.
The lease can be extended to 85 years.
