Howard Hughes Expects $66M Profit from ONE Ala Moana Condominium
In a letter to shareholders, Howard Hughes Corp. CEO David Weinreb predicted the ONE Ala Moana ultra-luxury condominium tower in downtown Honolulu will generate a profit of $66 million. The Dallas-based company is building the new high-rise in partnership with local developers Kobayashi Group and The MacNaughton Group, the Pacific Business News reports. The three entities have formed HHMK Development L.L.C. for the construction of ONE Ala Moana.
Expected to break ground this summer, the 206-unit tower sold out in just two days during the month of December. The project will cost approximately $900 per square foot to build, with the condominiums selling for an average price of $1.6 million, or approximately $1,170 per square foot.
The 23-story building will rise above the existing Nordstrom parking structure at Ala Moana Center. Upon completion, Howard Hughes’ first residential tower in Hawaii will offer one-, two- and three-bedroom homes ranging in size from 760 to 4,100 square feet.
Facebook Inc. founder, chairman & CEO Mark Zuckerberg purchased several multimillion-dollar residences in the upcoming condominium development, the newspaper reports.
Howard Hughes’ additional plans in Honolulu include development of the Ward Village master-planned community in Kakaako. Plans call for construction over 15 years resulting in two mixed-use residential towers, an affordable housing tower and the renovation of the IBM Building into a contemporary information and sales center. In October, the company announced that the first phase of Ward Village will consist of approximately 500 market-rate condominium units and at least 125 workforce housing units.
“While we have not yet determined pricing for our first-phase towers (at Ward Village), market data suggest that comparable existing ‘front row’ product with unobstructed ocean views re-sold in 2012 at an average price of approximately $1,400 per square foot,” noted Weinreb.
Construction on this phase of the master plan is expected to begin in 2014 and be complete by 2016.
Photo credits: http://www.onealamoana.comTags: affordable housing, Development, economy, luxury