A former Walgreens flagship store, located on one of the busiest intersections in Honolulu, was leased to a very different type of tenant. In the process, it revived a highly visible property in a bustling neighborhood.
The space involved a search for a tenant to bring new energy to a building at 1470 to 1488 Kapiolani Blvd. that had gone vacant for a while. The resulting deal was the 2023 Impact Award winner for best lease in Hawaii, chosen by outside judges who are industry professionals and familiar with the area.
The new tenant, Auto Source, focuses on leasing and selling used vehicles at attractive prices, a strategy that's led the company to grow in the industry. This new location represents a major investment as the company seeks to expand its business.
Rock Tang, senior vice president at Cushman & Wakefield Chaney Brooks, said he liked being involved in the deal because it resulted in a "creative reuse of the building, which led to the transformation of a former drugstore flagship to a prominent dealership."
When a highly visible area is improved, it represents "a win for the community,” Tang said.
Impact Award Judge Jay Elicker, senior vice president at Commercial Asset Advisors, said that the "Walgreens had been vacant for quite a while. Changing the use to Auto Source for such an iconic location makes complete sense. I really like the deal."
Impact Award Judge Wendell Brooks, senior vice president at JLL, agreed on the benefit to the public of the arrangement, saying "a long vacant major corner in Honolulu will now be filled."
About the property: The building features an exclusive parking deck that can attract customers who will drive from all around the island. The property also has large windows, natural light and street visibility.
What the judges said: "Anytime you change the use of the building in Hawaii, it is a big deal," said Impact Award Judge Evan Ketter, leasing manager at MW Commercial Realty Inc.
They made it happen: Cushman & Wakefield Chaney Brooks: Senior Vice President Rock Tang and Real Estate Advisor John Rankin. JLL: Industrial Brokerage Vice President Cullen Oesterly and Vice President Keenan Sue.
