Optimum Marketing and Management Corp. which operates the Queen’s Surf Cafe & Lanai in Waikiki, has been given a five-year lease from the city and county of Honolulu. The food concession is located in a prime oceanfront location in Kapiolani Park and the city was under recent criticism from the public for renting the space for such a low amount to Optimum and not allowing other companies to bid on the location.
Under the new permit, Optimum would be required pay the city $500 per month and 5 percent of the gross sales for the first two years. In the third year, Optimum would pay $750 per month and 6 percent of their gross sales. In the fourth year, the fee would increase to $1,000 per month and 6 percent of gross sales and in the fifth year the fee would be $1,000 per month plus 7 percent of their gross sales. Optimum would also be required to maintain the public restrooms located near the concession stand.
Waikiki real estate retail analyst, Stephany Sofos, commented, “It’s a little low for Waikiki, but they are paying the normal standard rent across Hawaii. Given that the whole idea here is to have a concession that provides a service to Kapiolani Park users, it’s a fair exchange. This new deal is substantially higher than what they were paying before. However, the city isn’t gouging them because they are in Waikiki.”
Source: Honolulu Star Advertiser, 2-2-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com
