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The Honolulu Advertiser
Posted on: Friday, October 5, 2007

Manana becoming major Hawaii shopping zone

By Andrew Gomes
Advertiser Staff Writer

Hawaii news photo - The Honolulu Advertiser

Retail developers are drawn to Manana, a former Naval reservation in Pearl City, by available land, the presence of a Wal-Mart and because about 200,000 people live within five miles of the area.

DEBORAH BOOKER | The Honolulu Advertiser

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When O'ahu residents contemplate shopping, retail meccas like Ala Moana and Pearlridge commonly come to mind. Not Manana.

But this former Naval reservation in Pearl City is maturing into a magnetic shopping zone.

Developers plan to add two retail centers to the area with nearly 50 tenants that range from the ubiquitous Longs Drug and Starbucks to newcomers Babies "R" Us and PETCO.

The plans likely will top off the evolution in recent years of a retail destination that was established after Home Depot and Wal-Mart joined older nearby retail establishments Pearl Highlands Center and Pearl City Shopping Center.

"You think back (prior to the early 1990s), the one and only place to shop was at the mall," said Mark Bratton, an agent with local commercial real estate firm Colliers Monroe Friedlander who is involved in Manana's retail development. "Now I would think you have to say this area is at least equivalent, if not bigger."

The area has almost 1 million square feet of retail, which would increase to about 1.2 million square feet with the two planned centers — putting the total about 200,000 square feet shy of O'ahu's second-largest mall, Pearlridge Center, in nearby 'Aiea.

Many area residents welcome more shopping and dining options, but they also are concerned about increased traffic attracted by more retailers, restaurants and a planned high-volume Sam's Club gas station.

"The traffic part is where the community is most concerned," said Cruz Vina Jr., a longtime Waiau resident and member of the Pearl City Neighborhood Board.

Developers have been drawn to building more retail in the area largely because of available land, Wal-Mart's presence and some 200,000 people living within five miles of Manana.

But Manana only fairly recently has emerged as a retail player.

For decades, Pearl City Shopping Center served as the area's only major retail establishment. Dating back to 1962, the center today is 255,122 square feet and anchored by Don Quijote, Foodland Super Market and Longs.

In 1993, the 420,000-square-foot Pearl Highlands Center opened with O'ahu's only Sam's Club discount warehouse. But the center, also anchored by a multi-plex theater, struggled commercially in its early years. It gradually improved under two subsequent owners that added new tenants, including CompUSA and Pier 1 Imports.

The biggest shift toward retail development stemmed from a city move to buy 124 acres of former military warehouse property for $109 million in 1994.

The city intended to develop the property largely for city uses, but ended up selling about half of its Manana land to pay a legal settlement over blocking hotel, golf course and condominium development on the Ka Iwi Coast near Sandy Beach.

Home Depot bought one city parcel below Pearl Highlands, and opened a 145,000-square-foot store in 2001. Wal-Mart bought another piece and opened a 147,979-square-foot store last year.

Bratton and a partner added to the retail mix by purchasing a slice of Wal-Mart's site and developing Pearl City Shops, a 25,000-square-foot strip center.

Five of the center's 10 stores recently opened — Bella Diva nail salon, Central Pacific Bank, Kozo Sushi, Starbucks and Wendy's. Others on the way are Just Tacos, L&L Drive-Inn, Pacific Endoscopy Center, Panda Express and Quiznos.

Wal-Mart's sister company, Sam's Club, expects to open a discount gas station by the middle of next year next to Pearl City Shops.

Vina said he welcomes more retail to the area, but the gas station is his biggest concern because of the expected high volume of business. Vina added that developers are planning traffic studies to help identify and mitigate congestion.

The two planned retail centers are Pearl City Gateway and Manana Village Center, both of which are slated for completion in late 2009.

Pearl City Gateway is a project by California-based Robertson Properties Group, which bought the site from the city in 2005. Proposed anchor tenants, according to leasing agency Colliers Monroe Friedlander, are Babies "R" Us, PETCO, Checker Auto Supply and Longs Drug. About 20 additional spaces for retailers and restaurants are available.

Manana Village is planned by California-based Arroyo Realty Partners LLC, which bought the site from the city in April. Project leasing broker CB Richard Ellis is seeking about 25 tenants but has not announced whether any leases have been signed.

Other city parcels that were for sale have all been bought, so more development is limited. Many plans for the two retail projects, including design renderings and prospective tenant lists, have not yet been made or shared with the public.

Albert Fukushima, a Manana resident who chairs the Pearl City Neighborhood Board and is president of the Manana Community Association, said residents desire more restaurants and places to shop, but also want the area's residential character maintained with low-density, low-rise buildings. "Hopefully whatever (the developers) provide, it will cater to what the community desires," he said.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.

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