Developer plans 40-story condo-hotel tower next to Walgreens flagship Hawaii store
Salem Partners, a Los Angeles-based investment bank and wealth management firm, plans to develop the parcel occupied by the Heald College Building next to Walgreens’s flagship Honolulu store into a 40-story high-rise condominium-hotel tower, Pacific Business News has learned.
In December, Salem Partners purchased the Walgreens site at the corner of Kapiolani Boulevard and Keeaumoku Street and the Heald College Building for a total of $73.5 million.
The firm has now put the Walgreens site on the market for an undisclosed price.
Jim Ratkovich, managing director for Salem Partners, told PBN that it was always in its plan to sell the Walgreens property.
He said Salem Partners is still conceptualizing its plans for the Heald College Building property.
But Chris Kostanecki, managing partner for Capital Pacific, which is marketing the sale of the Walgreens property, along with Jim Gibson, regional director for Stan Johnson Co., told PBN that Salem Partners is developing the parcel as a 40-story high-rise project. Marketing materials for the sale of the Walgreens property also say that the owners of the adjacent Heald College Building property intend to transform the property into a high-rise condo and hotel development.
The fee simple 1500 Kapiolani site encompasses 73,103 square feet of gross leasable space on about 43,000 square feet of land. It was being marketed as being a part of the City and County of Honolulu’s transit-oriented development, or TOD, zoning plans that recommend a possible redevelopment of the Heald College Building site into a residential high-rise.
There are currently three tenants at the Heald College building, including FedEx, Roger Dunn Golf Shops and a Japanese restaurant, according to Ratkovich, who noted that it may seek temporary tenants to fill up some of that vacant space.
Last year Heald College’s parent, Corinthian Colleges Inc., closed all operations and discontinued instruction at its remaining 28 campuses, including the Honolulu campus.
The redevelopment plan for the Heald College Honolulu building is expected to be sent to the city within 18 months or sooner, Ratkovich told PBN in December.