Kona mall sold; expansion planned
By Andrew Gomes
Advertiser Staff Writer
Alexander & Baldwin Inc., through affiliates, has sold its Big Island shopping complex Lanihau Center and adjacent undeveloped leasehold land to a Mainland investment firm for an undisclosed price.
A&B bought the 88,000-square-foot Kailua, Kona, center in September 2005, and announced an estimated $85 million plan to develop a 238,000-square-foot addition on the adjacent 22-acre site.
A&B said the center, anchored by Sack N Save and a Longs Drug Store, has been 100 percent occupied and attracted several unsolicited purchase offers. The company said it decided to sell because it would result in an attractive return on its investment.
The new owner, affiliates and partners of Michigan-based retail investment and development firm Westwood Development Group, said it plans to proceed with the expansion.
"We're really excited," said Westwood CEO Mike Bowen. "It really will become the town center of Kona."
Bowen said his firm has fine-tuned A&B's expansion plan to add about 232,000 square feet to the center, with an emphasis on restaurants and entertainment to serve the area's mix of residents and visitors.
Westwood is a company concentrating on retail development, and is involved in another Big Island project called Aina Le'a, a planned community of 1,924 homes, two 18-hole golf courses, a shopping center and other amenities on 3,000 acres near Waikoloa Village.
At Aina Le'a, Westwood plans a 300,000-square-foot regional shopping center with a department store, theater, restaurants, drugstore, market, post office, service station, and other shops and service providers.
Reach Andrew Gomes at agomes@honoluluadvertiser.com.
Correction: One of the anchor tenants in Kona’s Lanihau Center is Sack N Save. The grocery store was misidentified in a previous version of this story.
