FAO Schwarz signs on
for Kakaako complex

Victoria Ward Ltd.'s planned complex
will also have a Saks store

By Rick Daysog
Star-Bulletin

FAO Schwarz, the specialty toy retailer that brought you the $2,000 teddy bear, will open a two-level store at Victoria Ward Ltd.'s planned $200 million retail and entertainment complex in Kakaako.

The developers also announced today that they have reached an agreement with Saks Fifth Avenue for a 150,000-square-foot department store and that they are negotiating with the Rainforest Cafe to open a 19,000-square-foot theme restaurant.

FAO Schwarz's 40,000-square-foot toy store, its first in Hawaii, will co-anchor the proposed 800,000-square-foot shopping center at the corner of Ala Moana and Ward Avenue, which is being built by Victoria Ward and partner Simon DeBartolo Group Inc. of Indianapolis.

Negotiations with Saks, which has 40 department stores plus eight resort shops and 34 Off 5th clearinghouse outlets nationwide, were revealed in May by DeBartolo Group in promotional material for a trade convention.

Construction of the project is expected to begin in early 2000 and will be completed in the fall of 2001, according to Mitch

D'Olier, chief executive officer of Victoria Ward.

"We believe this center will create a vibrant and exciting retail option for the Honolulu community," said John Eyler, chairman and chief executive officer of New York-based FAO Schwarz.

FAO Schwarz, founded in 1862 by Frederick August Otto Schwarz, operates 38 locations nationwide, including flagship stores in New York, Las Vegas, Orlando and San Francisco.

The company's stores are known for their lavish decor, including a 35-foot-tall Raggedy Ann doll at its Orlando store and a 48-foot Trojan horse at its Las Vegas outlet.

Rainforest Cafe restaurants are best known for health-conscious menus and their tropical architectural themes, including cascading waterfalls and large banyan trees.

The company, founded in 1994, operates eight restaurants nationwide as well as sites in London and Cancun, Mexico.

The company plans to more than double its operations over the next few years.

Today's announcement comes at a time when Hawaii's retail landscape is undergoing tremendous redevelopment.

In addition to the Victoria Ward project, developer Duncan MacNaughton is building a $100 million shopping center in Waikiki dubbed Waikiki Promenade, and The Myers Corp. plans to construct a $140 million, luxury retail center at the current site of Consolidated Amusement Co.'s Waikiki theaters called the Waikiki Royal Walk.

The development of Victoria Ward's Kakaako lands also complements Gov. Ben Cayetano's plan to revitalize Honolulu's waterfront and boost Hawaii's economy.

Cayetano today lauded the developers' efforts, saying he supports the developers' plan to attract national retailers here.

The Victoria Ward project also includes a 4,500-stall public parking garage and a redeveloped Ward Farmers Market.

The developers currently are in the process of applying for state and county approvals.