Coconut Grove Marketplace on Alii Drive in the core of Kailua Village has been listed for sale.
The 49,513-square-foot retail center housing 18 restaurants and retail stores opened in 1998 by Anekona LLC, owned by developer Brian Anderson. Florida-based LNR Partners filed a foreclosure suit in 2009 against Anekona for defaulting on a $17.2 million loan for the marketplace, taking ownership of the fee simple land and development.
At the time, the sand volleyball court fronting Alii Drive remained in the Anderson family. The parcel, which Anekona leased from the state, was not part of the foreclosure. The developer transferred the lease to family members in a strategy to forego foreclosure, however the state subsequently cancelled their lease on the 0.33-acre volleyball court. The state now leases the site to the current owners of Coconut Grove.
In addition to recreation, the volleyball court functions as part of a larger drainage system for the marketplace, serving as a detention basin during heavy rainfall.
Current owner J.H. Real Estate Partners purchased the marketplace in fall 2017 for $21.8 million.
Anchor tenants at the center include Fosters Kitchen, Lava Java, Outback Steakhouse, Lavern’s, Gecko Girls Shave Ice, Humpy’s, Jack’s Diving Locker and Oceans’ Sports Bar
The center underwent a facelift in 2019 including a fresh coat of paint on the buildings spread out over the 5.5-acre parcel, new signage, restroom upgrades and improvements to the green space and volleyball court including lawn seating.
In October, paid parking was instituted at the center to the dismay of many vocal locals. A change.org online petition was established, garnering over 2,000 signatures. The company managing the lot, PARKLINQ announced 90 minute free parking per day for Kamaaina along with enhanced security.
According to the listing, the 256 space lot provides an “abundance of rare beachfront parking with new state of the art technology producing significant ownership revenue”.
The sale is listed through Greg Ogin, owner of SVNGO Commercial with an asking price of $38.4 million. The listing describes Coconut Grove’s architecture as a reflection of Hawaiian culture, which distinguishes it from the other retail centers in the trade area as well as having unobstructed ocean views.
“The subject property’s ideal, oceanfront location is a major draw for both visiting tourists and local residents. Its iconic plantation style along with a sand volleyball court & amphitheater makes it the main attraction in the Kailua – Kona area,” it continues.
