Business Monday: New California owner hopes to revitalize The Shops at Mauna Lani

The Shops at Mauna Lani is in a prime location next to a popular upscale resort on the Kona Coast, but for about a decade the luxury shopping center has struggled to lure patrons and businesses.

It didn’t help that it was mired in a receivership following the federal arrest of its owner for manipulating stock prices.

It has been a “failed center for the last 10 years” with nearly a 50 percent vacancy rate, said Doug Wood, CEO of Tommy Bahama, the anchor restaurant since the center’s opening in 2005.

But Wood told Big Island Now on Friday that he loves the location and has had a lot of success with his business at the shopping center.

He said he is excited about the new owners, California-based real estate firm BH Properties, which also believes in the location and has plans to revitalize the property and aggressively fill the current 11 store vacancies.

The company spent a combined $26 million to purchase the ground lease for the 80,000-square-foot facility (on Feb. 12 for $9 million) and the six acres of land under the center (on March 9 for $17 million), according to public records.

It was just a little less than the $27.1 million that Phoenix-based ArciTerra, owned by Jonathan Larmore, paid the family of previous owner Bill Borkan, who died in 2013.

The property had been in receivership, with Larmore sentenced to five years in federal prison in March 2025 for manipulating the stock price in 2023 of WeWork, a co-working space company, just before he filed for bankruptcy.

The open-air luxury shopping center is at the entrance of Mauna Lani Auberge Resorts Collection and has the potential for 34 stores.

Kelly Graf, associate with global commercial real estate company CBRE that is operating the center, said some improvements already were made during the receivership.

BH Properties short-term plans include improving the common area by enhancing seating areas, landscaping and lighting throughout the center, with bookend anchor properties Foodland and Tommy Bahama Restaurant and Store.

“Even though the center has been empty, our business has always been robust,” Wood said.

Tommy Bahamas has focused on being an upscale dining option for guests at Mauna Lani, the Fairmont Orchid and residents who live on the resort property.

“I’ve invested in our store and restaurant with remodels,” Wood said.

While the center was in receivership, Wood said he extended Tommy Bahama’s lease for at least 10 years, with the option of 20 years.

Graf said the new owners have plans to support the anchor restaurant and grocery store, with a focus on bringing in lifestyle boutique retailers.

“Re-imaging retail and curating the best mix of tenants requires a hands-on approach when considering demographics, location and need,” said Jim Brooks, president of Los Angeles-based BH Properties in an emailed statement.

Some of the current businesses include Juice 101, Mauna Lani Coffee Co., Hawaiian Island Creations and Knead & Bake. CBRE is hoping to find local businesses to occupy some of the vacant spaces.

Brooks said the company purchased the shopping center because “its irreplaceable and highly visible location is galvanized by the surrounding resort communities of Mauna Lani and the Waikōloa Village. Opportunities to own generational properties with strong surrounding demographics has been our retail strategy the last five years. The Shops at Mauna Lani checked all the boxes.”

Graf said the new owners also are going to capitalize on the pedestrian and bike-friendly nature of the center, which connects to the Mauna Lani resort that is .3 miles away.

With the success of the Waikōloa Resort shopping areas to Mauna Kea Hotel, Graf said BH Properties sees “Mauna Lani as a valuable and prime long-term asset.”

Graf said BH Properties had limited involvement with the prior ownership and watched the success and potential unfold.

BH Properties is currently working with architects and contractors on bids to see how they can transform the larger common areas to really make it more engaging and experiential for families and events.

Graf said it’s important to the CBRE team to connect with the local businesses and hopefully bring them into the shopping center.

Specifically, CBRE hopes to bring in lifestyle retailers that match the area for the beach and golf course. The leasing team also would like to attract more restaurants.

“We want to work with businesses, and we want to enter lease terms that are sustainable for them and allow them to grow while also activating the center,” Graf said. “Every business requires lease terms that are custom to that business model, their merchandising, and the services they provide.”

Wood said he has not been in touch with the new owners, but said: “A new landlord could really do a lot of things to the shops.”

He said guests at Mauna Lani and the Fairmont Orchid could be shuttling to and from the shopping center all day long.

At the bare minimum, Wood thinks bringing in a Starbucks would drastically boost business.

“I’m hopeful,” he added. “There’s so much opportunity.”

Those interested in leasing at the Shops at Mauna Lani click here.