Firm fixing up Waikiki eyesore

Well-known restaurateur Kevin Aoki has bought a long-derelict building in Wai­kiki and has plans to turn it into a home for multiple food concepts by the end of next year.

Aoki, who is one of the late Rocky Aoki’s seven children, honed his food industry skills at the Benihana chain, which was founded by his father in 1964. (Rocky Aoki died in 2008.)

"I worked for the chain for 15 years. I started at ground zero busing and clearing tables, and worked my way up to vice president by the time that I was done," Kevin Aoki said last week during a walk-through of his latest acquisition.

Now CEO of his own company, The Aoki Group, Aoki operates four food concepts in his own right, including the Bluetree Cafe in Kaka­ako; Doraku in Miami, Atlanta, Waikiki and Kapahulu; a Chinese noodle shop called Qing Mu in Atlanta; and Aoki, an upscale teppanyaki restaurant in Miami.

Aoki, who purchased 2240 Waikolu Way in July for about $2.2 million, said he has plans to invest up to $4 million turning it around. While Aoki has not settled on a property concept, he said the building’s 5,000-square-foot footprint could host multiple restaurants. It also has more than 1,800 square feet of outdoor lanai space and a ground-floor courtyard.

Built in 1938 as an eight-unit apartment complex, the building sat empty for the past 15 years save for homeless squatters. After buying the property and obtaining a demolition permit, Aoki said he had to clear the building of trash and of at least a half-dozen homeless occupants. In the past, Waikiki residents and nearby businesses, including the Marine Surf Hotel, had complained about the property to the city Planning, Health and Fire departments, as well as the police. The police say that they’ve made multiple calls to the vacant property over the years.

"We pulled out eight dumpsters full of trash," Aoki said as he pointed out an area where a homeless man had barricaded himself in. "It’s pretty clean now, but it’s taken us a whole year to get to this point. Lots of people told me I was crazy for taking this on, but I think space- and timing-wise it’s a very good move for a small owner-operator like me."

Aoki said he operates some of his restaurants on property owned by others but prefers to be an owner-operator because it always makes for wider margins.

"If your heart is in your business, I think you should be successful if you own the land," he said.

That’s why a shortage of Waikiki space inspired him to consider purchasing the building. Critical mass along the Kuhio Avenue corridor, including the coming Ritz-Carlton Residences and the redevelopment of the International Market Place, Wai­kiki Trade Center and King’s Village, cemented the deal.

"This particular spot is one of the last remaining spaces in Waikiki for a small operator," Aoki said. "It’s also very close to Kalakaua Avenue, Duty Free Shopping and all of the Kuhio redevelopment."

Aoki said operating Doraku in the Royal Hawaiian Center, which is just blocks away from his coming enterprise, helped him to realize that there already is lots of foot traffic surrounding the location.

"It’s already a very busy location, but I think that there’ll be even more traffic in the area once all the redevelopment is complete," he said. "The fact that we are sandwiched right in the middle of all that critical mass is very exciting to me."

Timing the market right has worked for Aoki in the past, said Richard Nakama, general manager of Doraku in the Royal Hawaiian Center.

"It reminds me of what (The Aoki Group) did in Kakaako," Nakama said. "When Kevin first bought the locations for Bluetree and Doraku on Kapiolani, they were in areas where no one wanted to go. Now they are thriving because of all the redevelopment. I believe the same thing is going to happen to this part of Wai­kiki."

While Aoki had clear and solid business reasons for the purchase, another reason for the redevelopment is that he was inexplicably drawn to the design of the property.

"Right now I’m in the process of getting it registered on the historic registry. I’d like to keep the aesthetic design of the original structure — its retro-chic charm was one of my original attractions," Aoki said. "Also, the building was built in 1938, the same year that my dad was born. Somehow it just felt right."

Aoki said he hopes to complete the historic-registry process in the next few months. He’s working with Honolulu architect Brian Fujiwara on the redesign of the building, which he hopes will be able to retain much of its historic appeal, including the network of steel beams that are stamped with the Carnegie Steel emblem.

He’ll also have to pursue a zoning change from resort-mixed use to restaurant.

"Because it’s an old building, there may be extra structural work to strengthen the foundation and bring in right utilities," he sad. "Permitting also may take a little longer than usual; however, I think that the city wants to see this happen."

The pending redevelopment is supported in Wai­kiki, where residents and businesses had complained about the building’s condition for years.

"We’re really happy this building has found an owner who is willing to redevelop it," said Rick Egged, president of the Waikiki Improvement Association. "It’s been a negative for Waikiki. We look forward to it being turned into a positive. Certainly, anyone willing to turn that around is to be credited."

Waikiki Neighborhood Board member Jeff Merz, who is an urban planner, said he looks forward to the rehabilitation of one of Waikiki’s last remaining pre-statehood buildings.

"Certainly, you can see the building’s art-deco, midmodern features and the building’s historic value even in its degraded state," Merz said. "We have such a lack of pre-statehood historical structures in Waikiki. I completely applaud Kevin Aoki for his efforts."

In addition to sprucing up a blighted spot in Waikiki, Merz said, Aoki’s redevelopment could spur other improvements.

"It’s really telling that that space sat vacant for so long and now with all the redevelopment someone wants to renovate it," Merz said. "I think the same thing will happen in this case. (Aoki’s) improvements likely will cause other interested parties to consider some of the other smaller ancillary areas that have been overlooked. This is an excellent step forward for Waikiki."