Queen Ka’ahumanu Center, the largest mall on the Hawaiian island of Maui for 50 years, may be facing its demise, according to a report on the news site Maui Now.
U.S. Bank filed for foreclosure on the mall last November, complaining that QKC Maui Owner had defaulted on an $88.5 million loan on commercial mortgage-backed securities it had taken in 2014. The bank says QKC now owes it $118 million.
Vacancies rose precipitously at the 570,904-sq.-ft. mall during the pandemic, placing it in more dire straits. Queen Ka’ahumanu Center had a net operating income that was less than its total debt service, according to a report by Fitch Ratings.
Competition, meanwhile, is fierce. The Kahului-Wailuku-Lahaina metro is the retail hub of Maui and houses other significant centers such as Lahaina Cannery Mall, Maui Market Place, and Maui Mall.