Maui Clinic sold, to become new retail hub
The Maui Clinic building next to the Maui Mall will be transformed into a retail hub, a change from serving as a medical clinic and doctors’ offices for more than 50 years.
The property was sold by Alexander & Baldwin to Oahu-based investment group Puunene Investors LLC for $3.4 million in January, county and state records show. Its new owner has plans to renovate the former doctors’ offices and clinic facility and replace it with retail.
“Our thought is because it is located next to Maui Mall, TJ Maxx and Longs and Whole Foods, it really lends itself to be a retail building. We are targeting and trying to find retailers that want to be next to Maui Mall,” said Keoni Fursse, chief executive officer and principal broker of Kokua Realty, which is managing, leasing and marketing the building.
Maui Clinic Pharmacy is the only current tenant that will remain in the building, Fursse confirmed Friday.
On Jan. 11, A&B sold the 16,642-square-foot building and its 1.3-acre lot to Puunene Investors, whose agent is Gary Oda of Oahu, according to various state records. Oda is president of Allied Builders System, based on Oahu.
A&B spokesman Darren Pai said that the offer for the Maui Clinic building was unsolicited.
A&B was able to reinvest some of the proceeds of the purchase of the Maui property in Manoa Chevron on Oahu adjacent to Manoa Marketplace, which A&B also owns, Pai said.
He added that all of the Maui Clinic tenants were offered options to relocate at other A&B properties and also were offered relocation assistance for non-A&B properties.
But he said that some tenants decided to terminate their leases early and relocate on their own.
One tenant relocated to another A&B property, Pai said.
Pai said A&B did not develop the property, but company records show that it was originally leased in 1958 to a group of former plantation physicians who built the clinic to serve Dream City.
Dream City was an A&B development in Kahului where people relocated from the plantation camps. It was constructed between 1949 and 1963, county documents show.
Maui News stories say Maui Clinic opened along Puunene Avenue in May 1960, and was a joint venture of six physicians. The clinic added three new offices in 1970.
Les Krenk, owner of Maui Clinic Pharmacy, said that he’s glad things are settled regarding the sale of the building and that positive renovations have already occurred since the transition in January.
He said the building was recently fumigated for the first time since he moved in in 1989. Although Krenk said he had to buy a hazmat suit, and one of his workers pulled a dead 12-pound cat out of the ceiling after the building was fumigated.
Some stone walls have been removed and other minor repairs have been made to the building, Krenk said.
Krenk said that, even with the new owner, he will not move his business because the Maui Clinic building is an ideal location.
“It’s really hard to beat this,” he said.
Fursse said that he is currently putting together price estimates for building renovations, which will include new windows and new exterior paint. The structure will remain the same.
He expects the renovations to begin in April or May.
In marketing the building, Fursse said the building’s prices are much lower than new retail spots on Maui.
Space is being advertised at a monthly rate of $2 per square foot plus property expenses. Other commercial retail spaces may be going for $5 to $7 per square foot plus property expenses, Fursse said.
He said that the building’s owner is looking to sign leases now in an effort to coordinate the building’s renovation with interior construction by tenants.
* Melissa Tanji can be reached at email@example.com.