Safeway Inc. has completed demolition of the former Schuman Carriage Motors Inc. site on Beretania Street and will begin construction of a new $65 million, 61,000-square-foot store by the end of this year.

The so-called podium store — with street-level parking and the supermarket on the second floor — is expected to open in November 2011, according to the company’s broker, Wendell Brooks III. It will be the first podium store for Safeway in Hawaii.

The Pleasanton, Calif.-based Safeway is self-financing the construction of the new Beretania store and at least seven others in the islands. The company also has committed to widen Piikoi Street and modify crosswalks and signals at an estimated cost of $1 million, Brooks said.

The company is aggressively expanding nationwide with about 50 projects under way, according to Brooks.

"Hawaii is one of five markets they’ve focused in on, with the most noteworthy project being Safeway Beretania," Brooks said. He discussed the project last week at a luncheon sponsored by the Hawaii Chapter of Certified Commercial Investment Members.

The national supermarket chain purchased the more than 3.3-acre site for $27 million. The property includes two former Schuman parcels and two smaller parcels previously owned by separate families. The company was unsuccessful in its attempts to purchase a former 7-Eleven convenience store to round out the block.

The new Safeway will be about a half-block away from its current location on Pensacola and Beretania streets. Safeway sold that site last month to Walgreen Co. for $22.5 million.

The new store will follow Safeway’s "lifestyle concept" — with expanded areas for floral, produce, meat and seafood and an outdoor seating area, as well as more than 3,800 square feet of retail space for restaurants and other small businesses. A Starbucks and bank will be built within the store.

More than 80 percent of all Safeway stores are marketed under the lifestyle brand, according to Susan Houghton, director of public and government affairs for Safeway’s Northern California division. The chain has about 1,800 locations nationwide, including 19 in Hawaii.

Safeway also is planning stores in Laulani Village in Ewa Beach; Kauai’s Hokulei Village in Lihue; the Big Island’s Lanihau Marketplace in Kailua-Kona; and Maka’ala Center in Hilo. In addition, the grocer is reviewing three more potential shopping center development sites, including two on Maui and one on Oahu.

Safeway has set up a website at www.newberetaniasafeway.com with information on the new store.