U-Haul begins renovation of old Kmart building | News, Sports, Jobs

U-Haul rental trucks, vans and trailers are parked in front of the company’s new site at the former Kmart store in Kahului on Wednesday afternoon. The island’s first U-Haul-owned location opened for business Oct. 19. The Maui News / MATTHEW THAYER photos

U-Haul expects to complete its renovation of the former Kmart building in Kahului into hundreds of self-storage units and a truck rental showroom in six months to a year, said the U-Haul Company of Hawaii president.

“It is going to go up pretty quickly,” Kaleo Alau said Wednesday.

He noted that renovating the 107,520-square-foot building, which was acquired by the company in October, was better than having to build from the ground up.

Although plans for the renovation still are being finalized, Alau said that the self-storage mix of sizes will include 4-foot-by-5-foot units to 10-foot-by-10-foot and 10-foot-by-20-foot units in possibly two levels. Boat and vehicle storage also are being considered, he said.

The 419 parking stalls on the 7.3-acre site at the corner of Hana Highway and Dairy Road provide the opportunity and space for rentals — with a fleet of between 30 and 40 trucks — and U-Haul Remote 24/7 access, which allows for self-pickup and return of trucks by smartphone, he said.

Although the current operations are located facing Hana Highway, the location of the entrance to the main showroom for the new U-Haul will be on Dairy Road. U-Haul’s parent company, Amerco Real Estate Co., purchased the 7.3-acre site for $26.8 million.

Alau said that customers may arrive on a late flight and “want to get started on their business.”

“The first thing they want to get is the truck, and they don’t want to wait until 7 a.m.,” he said.

In addition to the self-storage and truck rentals, the U-Haul Moving & Storage Kahului site will offer trailer-hitch installations and sales of propane and moving supplies, such as hand trucks, in its showroom.

Although U-Haul’s current temporary entrance faces the Hana Highway side of the building, Alau said that the plan is to use the main entrance on Dairy Road. The decision to begin initial temporary operations on the Hana Highway side of the building was done to better facilitate the renovation work.

Alau also is aware that the former Kmart store was the site of fundraisers, such as car washes. He plans to find a way to continue the community service.

“My family is from Maui,” Alau said. “I don’t want to be the guy to say ‘no way.’ ”

The building will have energy-efficient LED lighting and a photovoltaic system, he said.

Alau did not disclose the estimated cost of the renovation.

U-Haul’s parent company, Amerco Real Estate Co., purchased the site for $26.8 million on Oct. 17 from 424 Dairy Road LLC, a company of Hendricks Commercial Properties of Beloit, Wis., according to county property tax and state business records.

The county assessed the property at $23.8 million.

The Kahului store is the fourth in Hawaii owned by U-Haul with the other three in Mapunapuna and Kakaako on Oahu and in Kona. U-Haul has 22 dealership partnerships statewide, including three on Maui.

The building had been vacant since June 18 when financially troubled Sears Holdings Corp. closed the Kahului Kmart after 24 years.

With a growing Maui community, Alau said that the company saw a need for more self-storage and truck rental services on Maui. In January, a U-Haul official became aware that the Kmart building was going to become available and reached out to Alau, who told him there was no better location for Maui’s first U-Haul-owned store.

The purchase had to be fee simple, not leasehold, though, he said.

“It’s the difference between renting gold and owning gold,” Alau said.

Two days after the deal closed, the temporary showroom was open, Alau said. Currently, the Kahului location has 14 vehicles to rent with 10 more on the way. The location should have 30 trucks in January.

U-Haul has more than 21,000 locations in 50 states and 10 Canadian provinces, the company said in a news release.

* Lee Imada can be reached at leeimada@mauinews.com.

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