KAILUA, HAWAII – Kaneohe Ranch announced today it has finalized the sale of the Don Quijote site in Kailua Town to 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 ensured 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. Kaneohe Ranch is working with other merchants to try to ensure that as much of the unique merchandise offered by Don Quijote as possible will remain available in Kailua following Don Quijote’s closure.
“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. Target will be creating 250 construction jobs and more than 250 jobs at the store for Hawaii residents.”
More importantly, Target shares Kaneohe Ranch’s values in terms of sustainability and conservation, D’Olier said. Target’s plan for the Kailua store includes installing photovoltaic panels on the roof as it has at its three other Hawaii stores, and installing permeable pavement in the parking lot to minimize storm runoff.
“Additionally, Target is a good corporate citizen, a company that truly ‘gives back’ in the communities where it does business,” D’Olier said. During its years in Hawaii, beginning even before opening its first store here, Target has contributed significantly to not-for-profit, community efforts in the areas of arts and education. Target financial help sent children to the Boys and Girls Club of Hawaii – Windward on Furlough Fridays, and Target is involved with the volunteer recruitment program grant at the Department of Education that helps dozens of Windward schools. Target also sponsored the Keiki Pavilion at the Hawaii Book and Music Festival in Honolulu and provided transportation support to help more than 13,000 students attend Honolulu Theatre for Youth performances.
Target’s substantial charitable efforts are an aspect of the company that is important to Kaneohe Ranch and its owners, D’Olier said.
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.
Kaneohe Ranch manages the real estate owned by the family business entities of Harold K.L. Castle and Alice H. Castle and their nonprofit charitable foundation, the Harold K.L. Castle Foundation. The portfolio consists of major landholdings in Kailua as well as other properties on Oahu and the U.S. mainland. The Kailua properties include commercial, retail, office, industrial and residential leasehold parcels.
Report submitted by Kaneohe Ranch