Since the volume draws are small, a tiny electric tank is sometimes the best solution. Tankless heaters have HUGE instantaneous power draws, requiring dedicated (and heavy gauge) wiring & breakers. A tiny tank can be a plug-in.
Rather than feeding the tank with the output of the main HW heater it's usually better to just size the local heater for kitchen draws. At 35' with 3/4" plumbing you have nearly a gallon of water in the distribution plumbing, and simple rinses or hand washing draws are less than that at a time (as are some Energy Star dishwashers). If you're drawing hot water from the main heater to a local heater, a large fraction of that draw from the main heater gets abandoned in the plumbing and cooling without reaching the local HW heater.
Recirculation schemes get you nearly-instant hot water, but abandons even more heat in the plumbing on short draws, since it's sending 35' of tepid (but not usually cold) water back in the return line whenever you need the 100F water rather than 90F (or whatever) water at the tap.
Any long distribution plumbing runs are cost-effective to insulate with 5/8" closed cell foam pipe insulation, since that extends by a few 10s of minute how long the water remains at a useful temperature after the first draw. See: http://www.leaningpinesoftware.com/h..._cooling.shtml
Most of the stuff sold in box stores is ~R2 3/8" wall goods- you may have to buy the better stuff at a plumbing distributor (or online).
You may want to start there first- even if insulation alone doesn't make it a fully acceptable solution it's not a wasted effort if you're going continue sending water from the main hot water heater to whatever bigger deal solution you decide upon.