The former Sports Authority location in Kakaako will be transformed into an indoor marketplace next year for as many as 250 local vendors.

StorKeeper Self Storage owner Chris Ulu, along with a partner, plans to invest $1.5 million to renovate the 60,000-square-foot building at 333 Ward Ave. after signing a 10-year lease with landlord Howard Hughes Corp., he told the Honolulu Star-Advertiser on Tuesday. He didn’t disclose financial terms of the lease.

Sports Authority closed eight stores in Hawaii after going bankrupt, affecting hundreds of employees in the islands. The big-box retailer shuttered 450 stores nationwide.

“The concept is great. It’s similar to self-storage,” where entrepreneurs rent out space for offices, said Ulu, who has been working in the self-storage industry for more than 30 years. “It’s more affordable compared to when you’re going into a shopping center. It’s a family home for small businesses and entrepreneurs coming together. This is going to be one of the biggest open markets in Hawaii.”

The Ohana Hale Marketplace is scheduled to open in May with local businesses selling made-in- Hawaii products and food, he said. Monthly rent for a 10-by-10-foot space will be about $2,100 and $1,500 for a 10-by-5-foot space.

“With local businesses employing more than half of the Hawaii population, it is concerning that many of these companies are going out of business,” the company said on its website. “(Our) purpose is to give local entrepreneurs stability, the services they need, a strong marketing footprint, as well as a supportive community of like-minded business owners. Our promise is to offer a supportive, collaborative atmosphere where businesses can thrive.”

For more information, go to ohanahalemarketplace.com.