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The Challenge
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| Kukui Grove Center is a 330,000 square foot open-air regional mall located in Kauai County anchored by Macy's, Sears, Longs Drug, and Star Market. Built in 1982, the mall suffered from termite damage, weak economic condition after Hurricane Iniki (1992), and from increased competition from new strip and resort shopping centers. CB Richard Ellis was retained to assist in the design and redevelopment plan for the mall that included a new synergistic tenant mix and expanded box tenant opportunities on the retail campus. |
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The Solution
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CB Richard Ellis worked as a redevelopment partner to design a new conceptual plan that addressed the termite damage, changed the orientation of the center outward, created a sense of place for the community, updated the center's aesthetics, re-energized the center, brought in new retail concepts and a dynamic tenant mix and improved the return on investment to ownership. A number of new retailers were added including Starbucks, Jamba Juice, Blockbuster, Macy's Men's & Home, Coldstone Creamery, Quiznos, and a number of specialty retailers.
In addition to the redeveloping Kukui Grove Center, CB Richard Ellis convinced many existing retailers to remodel their stores, without cost to the Landlord. The redevelopment effort restructured Kukui Grove Center's financial condition, turned a dying center into a dynamic one, and re-established Kukui Grove as the center of retailing for the island's residents and visitors. |
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Kukui Grove Shopping Center
End Result
The property is 90% leased, enjoyed a 5% sales increase in same store sales over last year even during the most invasive phase of the construction work and cash flow to the ownership will increase by nearly $1.0 million by the end of this year. |
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