Ownership of the Puna Kai shopping center property in Pahoa is expected to change hands this week, and the new owner says construction will begin within days. ADVERTISING Ownership of the Puna Kai shopping center property in Pahoa is expected
Ownership of the Puna Kai shopping center property in Pahoa is expected to change hands this week, and the new owner says construction will begin within days.
“We expect to be closed on it this month and start construction the first of August,” said Gary Pinkston, who said he will be the sole owner after the property sale closes.
The planned shopping center will be located at 15-2714 Pahoa Village Road. Construction is expected to take a year on the 9.93-acre property.
Plans call for Kahakai Boulevard, which crosses Pahoa Village Road at the future shopping center’s address, to be extended to provide better access to “a distinctive blend of daily services, specialty shops, entertainment and eateries.” The property is being purchased from early project developer, Hilo-based BT Kuwahara LLC.
The old Hawaii design of the shopping center is meant to help shoppers feel at ease, Pinkston said, noting a 10-foot overhang on “clusters” of buildings will allow customers to stroll comfortably store to store — rain or shine.
Construction was originally slated to begin in March, but permit delays pushed the time frame to June — and the property purchase process further delayed construction until August.
Anchor tenant Malama Market, which plans to relocate from its current location in Pahoa, should still be set to open a 35,000-square-foot grocery store in the shopping center by summer 2018, Pinkston said.
Construction estimates and start dates for large projects of this type often evolve because of unforeseen hurdles such as weather, permit delays and inspections.
But Pinkston said Hilo contractor Goodfellow Bros. already began initial preparations, installed a water tank and will begin construction of the shopping center next week, including a $2.5 million sewer plant for the approximately $40 million project.
“I will be the owner, and we’ll be moving along very rapidly once we get this closed,” Pinkston said during a telephone interview Wednesday. Goodfellow Bros. did not reply to an inquiry seeking comment for this article.
Confirmed tenants of the shopping center, in addition to Foodland-owned Malama Market, include Aloha Petroleum, Starbucks, McDonald’s, a tax preparer and an area pizzeria. Still in negotiations are Walgreens and Dunkin’ Donuts, Pinkston said.
Tenants he’s confident will sign, plus those already confirmed, mean the shopping center already is the equivalent of “at least 80 percent leased, which is remarkable when we haven’t started construction,” he said.
Pinkston is president of Meridian Pacific Ltd., a real estate development company that also plans construction of a similar project, the Waikoloa Towncenter, in Waikoloa Village. Meridian Pacific has a 98 percent occupancy rate on a million square feet of retail properties, including several in Hawaii, California and Nevada.
Pinkston said zoning requires wooden doors and windows at the Puna Kai shopping center, to maintain Pahoa’s historic look. But he’s concerned that wood will not last long and hopes regulators will allow more costly — but longer lasting — composite materials to be used instead.
Mayor Harry Kim cheered the expected start of construction, and the jobs that will come with it, as a much needed boost to Puna.
“That’s where I was born and raised. I love seeing this growth,” he said.
Email Jeff Hansel at jhansel@hawaiitribune-herald.com.
