The Capitol Market Building, a three-story commercial building at the corner of Kalakaua Avenue and Beretania Street in Honolulu, is being redeveloped into 14 apartment market-rate units for sale, with plans to build a fourth floor, the owner of the property told PBN.

The $2 million redevelopment of the property, which is located at 1541 Beretania St., is expected to begin in mid-February and be completed by the end of the year, Dennis Mahoney, owner of the 60-year-old building told PBN.

“It’s a very old building,” he said. “We will be gutting the three floors and putting in 14 apartments on the second an third floors, and the commercial entities will stay on the ground floor.”

Mahoney said that the buyers of these apartments will be able to share amenities with the adjacent Kulana Hale senior housing facility, a project he was a part of as well.

The Pho Tri restaurant, which has been located on the ground floor of the building for years, will remain in its spot and be joined next door by Pacific Business Specialists. The accounting and bookkeeping firm is moving from a higher floor to the ground floor of the building.

“We may put two three-bedroom units on the fourth floor,” Mahoney said. “But we will need to get approvals and permits for that.”

He noted that he has owned the property for many years, and instead of selling it, he decided to renovate it.

Honolulu-based Pacific Atelier handled the architecture services for the project, while Honolulu-based Coastal Development has been named general contractor for the renovation.

Late last week, the City and County of Honolulu’s Department of Planning and Permitting issued Mahoney a building permit for the project.

Duane Shimogawa Reporter – Pacific Business News