New Asian market to open next year in Cedar Rapids ‘food desert’

CEDAR RAPIDS — A specialty grocery store is opening in the Cedar Rapids neighborhood that became a food desert after Hy-Vee’s departure in June.

Hornbill Asian Market, a small chain with four locations in three states, will open in the first quarter of 2025 at 1445 First Ave. SE.

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Building owner John Khairallah said the new tenant for the 11,000-square-foot building could open as early as January or February.

The Hornbill Asian Market will be about a block from Hy-Vee’s former Moundview neighborhood location at 1556 First Ave. NE.

The Asian specialty store first started with a Waterloo location in 2014. In addition to Asian food, the store will offer fresh produce and specialties that meet practical and cultural food needs.

The store will be the first tenant in the new building, which was built in 2019. Before being torn down and rebuilt, the property contained Music Loft, with housing behind it.

Hornbill Asian Market’s lease is for five years, with options to renew.

Khairallah said he’d declined to lease the space to other types of stores.

“I’ve been getting a lot of phone calls from cigarette (stores), liquor places,” he said. “I decided we don’t need that. We need to improve the neighborhood and the foot traffic.”

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Council reaction

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City Council member Dale Todd, who represents the neighborhood in District 3, expressed appreciation for Khairallah’s vision.

“It is no secret that he has struggled to find the right mix for his new building, but that is because he has been willing to wait for the right tenant instead of renting to another liquor store or vape shop,” Todd said.

Todd said the new store, which is within 2 miles of two other Asian markets, reflects the community’s changing demographics.

“While it may appeal to a niche audience, if done right, it can certainly have the ability to capture more market share,” Todd said. “But I do not see it as a replacement for a full-service grocer.”

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City Council member Ann Poe, chair of the council’s development committee, said the city has been working “diligently” to find a Hy-Vee replacement through ongoing conversations with vendors.

The city still hopes to attract a full-service grocery store with a pharmacy to Hy-Vee’s former location, but any store offering fresh food in the neighborhood is welcomed.

“It’s not forgotten in anyway, shape or form by anyone on City Council,” she said. “Anything that gets food down in that area, I’m all for.”

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