Since Macy’s closed its store in downtown Honolulu last month, mum has been the word on any new tenant. But new plans for the space are drawn up, and all signs point to Walmart.
A building permit was issued last week to renovate the former Macy’s space for a new retail tenant.
The tenant isn’t named in the extensive plans on file with the city. But plan details — numerous merchandise racks, several grocery isles, a pharmacy, a photo lab, a jewelry counter, an electronics department, a "money center" and a McDonald’s McCafe — suggest it will be a Walmart.
The architectural firm that drew up the plans, Texas-based Raymond Harris & Associates, has a long relationship with Walmart. And one person familiar with the plans confirmed Walmart as the new tenant.
Walmart representatives could not be reached for comment Wednesday.
Officials with property owner Lexington Realty Trust, a New York-based real estate investment trust, also could not be reached Wednesday. The company in January did not return phone calls and an email seeking comment about the future of the Macy’s site.
Walmart stores in or near downtown urban areas have attracted opposition in some cities, including Los Angeles; Springfield, Mo.; Sarasota, Fla.; and Athens, Ga., largely because of fears that smaller businesses will be hurt.
But the retailer has pushed into urban cores with success and sometimes with smaller stores, especially as opportunities shrink in suburban areas filled with Walmart and other retailers.
Local retail analyst Stephany Sofos calls Walmart moving to downtown brilliant.
Sofos recalled doubting that a Walmart on Keeaumoku Street near Ala Moana Center would do well, but it does because it draws such a broad demographic of shoppers, she said.
"It has a bit of everything for every consumer whatever socioeconomic level you’re on," Sofos said. "You can buy everything you need."
Downtown isn’t often viewed as a great retail destination, but Sofos said it has plenty of residents and workers, while the size and parking of the former Macy’s building is suitable for Walmart.
The size of Walmart Supercenters — stores with a full array of retail and groceries — ranges from 70,000 square feet to 260,000 square feet. The former Macy’s space is about 85,000 square feet on two floors topped by a five-story parking garage.
The city estimates the value of the renovation work for the building permit at $6 million.
An affiliate of Lexington Realty Trust, Lexington Honolulu LP, applied for the building permit in August. Macy’s announced its intent to close the store in January. Lexington previously said the Macy’s lease expired at the end of last year.
Macy’s assumed the downtown space from former kamaaina department store chain Liberty House, which was sold in bankruptcy to the owner of Macy’s in 2001. Liberty House had operated a store on the site since 1982.
Liberty House considered closing the downtown location while in bankruptcy, and said that sales were fine but the rent charged by Lexington was twice as high as its other stores.
Lexington had acquired a leasehold ownership position in the downtown building in 1996 for about $11 million, and in 2006 bought the land under the building and two adjacent buildings for about $35 million from an affiliate of Campbell Estate and Austin Interests.
Potential redevelopment on parts of the block bordered by Fort Street Mall and King, Bethel and Hotel streets could allow a tower up to 450 feet high for office, retail, residential or hotel use.
