The property upon which Burger King and Fitness Forever in the center of Kailua-Kona are situated is up for sale.
Land owner Lanihau Properties LLC recently listed on the market for $5 million the two parcels that comprise nearly 2 acres at the corner of Palani Road and Kopiko Street, according to Colliers International, which has the listing. Both parcels, owned by members of the Greenwell family, are fee simple and must be purchased together.
“They own quite a lot of property in West Hawaii, and made a strategic decision six to seven years ago to start to geographically diversify” Colliers International Senior Vice President Mark D. Bratton said Friday, noting two years ago Lanihau sold the ground lease for West Hawaii Today and American Savings Bank on Palani Road.
Both properties are within proximity of Lanihau Center and Kona Coast Shopping Center, each of which is anchored by a grocery store with other offerings.
The Burger King property at 75-5597A Palani Road is 30,013 square feet with the 2,952-square-foot restaurant. Kazi Food Corp., which operates 32 Burger Kings across the state, including five on the Big Island, holds a commercial lease on the property through June 2024.
The second parcel, the old Hilo Hattie building, is situated at 75-5643 Kopiko St. and currently houses Fitness Forever. The land measures 42,950 square feet and the building covers 11,072 square feet.
Currently, Kona Coast Investment Co. holds the ground lease on that parcel through March 2038. Kona Investment Co., which is owned by the founder of Hilo Hattie, is subleasing it to current tenant Fitness Forever.
Burger King has been situated on the parcel abutting Palani Road since December 1984, with the exception of a 10-month closure in 2013-14 after an agreement could not be reached on a new lease.
Fitness Forever debuted in Kailua-Kona in 2016, and expanded with a move to the old Hilo Hattie’s building in 2018.
“We’ve been getting really good interest off it. It is a good, safe and passive investment,” said Bratton, who noted that at some point the entire block could be consolidated and redeveloped.