Drugstore Development

IRVINE, CALIF. — Development activity is in a lull, but Irvine’s KZ Companies LLP said it is finding work building drugstores in California and Hawaii.

KZ Companies said it has completed construction on seven CVS/pharmacy and Long’s Drugs stores, both part of CVS Caremark Corp., so far this year and has six additional stores under development.

The total value of those projects is in excess of $120 million. The seven completed stores count more than 131,000 square feet in California and Hawaii.

The company’s recently completed a CVS/Long’s Drugs project in Huntington Beach, and has another project in the works for that city. It also has an Anaheim project on tap.

Last year, the company completed 15,000 square feet of space in Orange County amid a slow year for local projects. That was enough to nab KZ Companies the No. 8 spot on the Business Journal’s June 21 list of developers.

A nearly 30% reduction in construction costs during the past two years has in part prompted drugstores to move ahead on the construction of buildings, according to the company.

Article featured in the Orange County Business Journal