Target completes deal to buy Kailua Don Quijote site - Hawaii News Now - KGMB and KHNL

Target completes deal to buy Kailua Don Quijote site

KAILUA (HawaiiNewsNow) - Kaneohe Ranch Monday finalized the sale of the Don Quijote site in Kailua Town to the Target Corporation. The site comprises slightly more than 311,000 square feet.

"When Don Quijote approached us about buying back its lease we looked at all the options," said Mitch D'Olier, chief executive officer of Kaneohe Ranch. "Target had expressed interest in the site if it became available, so we began discussions with them about purchasing the Don Quijote lease. However, Target was interested in owning the property, and we continued negotiations that culminated in its purchase of the site, which closed on Friday."

Kaneohe Ranch and Target has said that all other tenants on the Don Quijote site that do not already have space for continued operations in Kailua have been relocated. Those retailers include Hakuyosha Dry Cleaners, Enterprise Rent-A-Car, Yum Yum Express, Ba-Le Sandwiches & Bakery and Twogood Kayaks Hawaii, Inc.

"We are faced with the fact that many of the commercial leases in Kailua Town, which were negotiated in the 1950s and '60s as 50-to 60-year leases, are now coming to an end. In quite a few cases, these properties have deteriorated substantially in the final years of these leases, and the current leaseholders cannot or do not want to negotiate a new lease," D'Olier said."Don Quijote was looking to sell its lease and therefore was not interested in maintaining or upgrading the property. Kaneohe Ranch was concerned that without the right tenant the site would steadily deteriorate."

The economy has also been a challenge for some tenants over the past few years, D'Olier said. "For these reasons, we are particularly pleased that a company like Target wants to purchase a very large, very deteriorated property in the center of town and invest millions in improving it. In this environment, there are not many companies able to make that kind of investment and commitment."

The site of the Target store in Kailua is at 345 Hahani St. Construction on the 130,000-square-foot store is expected to begin this spring.

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