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Kamehameha Schools Sells Interest in Iconic Honolulu High-Rise

25 Jan 2015, 2:45 am

By Adriana Pop, Associate Editor

Kamehameha Schools, Hawaii’s largest private landowner, has sold the land under the 41-story mixed-use Executive Centre tower in downtown Honolulu.

According to the Pacific Business News, a group of local buyers, including the condo’s association of apartment owners, paid about $75 million to acquire the building’s leased-fee interest.

Located at 1088 Bishop St., the property features approximately 120 hotel units managed by Aston Hotels & Resorts, about 200 residential units and nearly 100 office units. There is also retail space, including the Hukilau Honolulu restaurant and Longs Drugs, a penthouse and a 12-story low-rise structure comprising 33 town homes and a parking facility.

“The property, which has a significant residential condominium component, is subject to a long-term lease (that runs through 2053), and is not part of any of Kamehameha’s strategic development areas,” Kekoa Paulsen, spokesman for Kamehameha Schools, told the newspaper in an email statement.

Under the terms of the agreement, individual condo owners may acquire the fee-simple title to their residential and commercial units. Public records indicate that Hawaii businessman Duane Kurisu, ResortQuest Hawaii, Nevada Holdings, Calvert Chipchase III Trust, Best Buy Hawaii International, Hawaii Holdings L.L.C., Longs Drugs and MB Technologies are among the buyers of the property’s leased-fee interest.

The transaction is part of Kamehameha Schools’ long-term strategy to generate revenue from commercial real estate sales to fund its educational mission. Over the past year, the $9.2 billion private trust has sold several properties, including the Costco-anchored Hawaii Kai Towne Center, to California’s ValueRock Realty Partners for $109.9 million and the Royal Hawaiian Center in Waikiki to a JPMorgan Chase affiliate for nearly $700 million.

Photo credit: Eugene Kim via Flickr

HCDA Green-Lights Stanford Carr’s New Affordable Apartment Complex in Honolulu

19 Jan 2015, 5:18 am

By Adriana Pop, Associate Editor

Hawaii regulators have approved a $50 million, 128-unit affordable rental project proposed by developer Stanford Carr near Ala Moana Center in Honolulu’s Kakaako neighborhood.

According to the Pacific Business News, the upcoming development is meant to satisfy Alexander & Baldwin Inc.’s affordable housing requirement for its nearby 43-story Waihonua at Kewalo condominium tower.

Waihonua at Kewalo in Honolulu

Scheduled to break ground in about a year, Carr’s 11-story Hale Kewalo complex at the corner of Piikoi and Kona streets will feature 27 one-bedroom units, 72 two-bedroom units and 29 three-bedroom units. The project will cater to Hawaii residents earning between 30 and 100 percent of the area median income (which is less than $40,260 or $57,480 for an individual and family of four, respectively). Monthly rents are expected to range between $500 for a one bedroom and a little more than $1,389 for a three bedroom.

Unanimously supported by the HCDA, Stanford Carr took over A&B’s reserved housing assignment at the end of 2013. “Essentially, A&B had a partner who could not get financing for the project,” Anthony Ching, executive director of the Hawaii Community Development Authority, the state agency overseeing the redevelopment of Kakaako, told PBN.

Carr’s other developments in Kakaako include the 204-unit Halekauiwila Place affordable apartment project (pictured), which opened last year, and the 600-unit Keauhou Lane residential tower, which is part of Kamehameha Schools’ master plan for the neighborhood and is expected to break ground in the spring.

Photo credit: Alexander & Baldwin

Hilton Plans Entree into Last Hampton-Less Bastion

15 Jan 2015, 4:11 pm

By Adriana Pop, Associate Editor

Hilton Worldwide subsidiary Hampton Hotels has announced plans to open a 175-key property in Hawaii, the last U.S. state without a Hampton hotel to date. Construction on the project is expected to begin in mid-2015.

The new Hampton Inn & Suites lodging facility will be part of DeBartolo Development’s proposed 1.4 million-square-foot, $500 million Ka Makana Alii shopping mall in West Oahu. Plans call for more than 150 new shops and restaurants, LEED-certified office space and a cinema. The first phase of the project, which has yet to officially break ground, is scheduled for completion in 2016. According to the Pacific Business News, it will include about 750,000 square feet of retail, dining, entertainment and hotel space.

Hampton Hotels’ announcement follows the opening of the brand’s 2,000th hotel, Hampton Inn & Suites Bellevue Downtown-Seattle, on Dec. 11. The new 128-room property is owned by Palmetto Hospitality and managed by OTO Development. Last year, Hampton also celebrated 30 years of existence as a brand.

“Hawaii has been a part of Hilton Worldwide’s history since the 1960s, with the opening of the first Hilton Hawaiian Village tower,” said Bill Fortier, senior vice president of development for the Americas with Hilton Worldwide. “As one of the world’s most sought-after travel destinations, it is only fitting to expand Hampton Hotels to Hawaii, bringing a successful mid-price product to the market.”

McClean, Va.-based Hilton Worldwide currently operates six hotels and seven timeshare properties in Hawaii.

Photo credit: DeBartolo Development

Alexander & Baldwin Buys Honolulu Industrial/Office Building for $39M; Lahaina Cannery Mall Sells for $58.5M

15 Dec 2014, 10:02 pm

By Adriana Pop, Associate Editor

In a $39 million deal, Alexander & Baldwin Inc. has acquired Kakaako Commerce Center, a seven-story warehouse and office building in downtown Honolulu.

According to the Pacific Business News, the company paid $39 million for the 204,000-square-foot property located between Waimanu and Kawaiahao streets. The building features five floors of warehouse space, topped by a sixth floor of office space and a seventh-floor parking deck.

The seller was California real estate investment firm F&F Waimanu Associates LLC, which was formed by Fowler Property Acquisitions LLC. The company bought the asset for $15.9 million in 2003.

A&B now plans to operate the property as industrial space.

“The investment in Kakaako Commerce Center expands our commercial portfolio focus on Hawaii,” Suzy Hollinger, spokeswoman for A&B, told the newspaper in an email statement. “Kakaako is an increasingly supply-constrained market, given the conversion of commercial properties to residential development.”

Joe Leonardo of Honolulu-based Joseph C. Leonardo & Co. brokered the transaction for both the buyer and seller.

According to Leonardo, Kakaako is the California Gold Rush. “That is where to place your money. I think it’s a stable asset that just has a great deal of opportunity now and in the future. The overall market for quality product is just extremely hard to find. There are, right now, more buyers than sellers. Kakaako is really just the place to be,” he said.

In regional news, the Pacific Business News reports that Safeway’s subsidiary, California-based Property Development Centers LLC, paid $58.5 million for the acquisition of the Safeway-anchored Lahaina Cannery Mall on Maui.

Located at the corner of Honoapiilani Highway and Kapunakea Street, the 15-acre, 130,599-square-foot mall has been open since 1987. Its new owner plans to demolish and redevelop about half of the property.

About a year ago, Property Development Centers purchased a 24.5-acre parcel of land on Maui from Alexander & Baldwin Inc., currently the site of the Target-anchored Puunene Shopping Center, which is nearing completion.

Photo credit: www.paradise-found-in-maui.com

For our most recent Hawaii office, retail and industrial market snapshot, click here.

HCDA Green-Lights Ward Village Gateway Project in Kakaako; OliverMcMillan to Develop 400-Unit Residential Community in Kapolei

8 Dec 2014, 2:49 pm

By Adriana Pop, Associate Editor

The Hawaii Community Development Authority has approved the first residential and commercial development project included in Phase Two of the Ward Village Master Plan in Honolulu, which consists of two high-rise towers with street-level commercial and recreational space.

According to the Pacific Business News, the upcoming Ward Village Gateway mixed-use project proposed by the Howard Hughes Corp. will rise at the site of the existing Ward Warehouse shopping center. The new development will bring a total of 236 residential units in two buildings, a one-acre public park with water elements flowing toward the ocean, public seating, native plants and walking pathways, and approximately 20,000 square feet of retail space along Auahi Street.

A second project in Phase Two is slated to bring a flagship 50,000-square-foot Whole Foods Market and additional retail space to the area.

“The first phase of our master plan is bringing significant economic growth and new community amenities to the neighborhood, furthering our mission of revitalizing and enhancing this growing community,” Nick Vanderboom, senior vice president of development for Ward Village, said in a statement. “The Ward Village Gateway project will connect the community from mauka to makai with the introduction of a new public park, helping to realize our vision for an integrated, sustainable neighborhood that provides a gathering place for all of Honolulu.”

The project will be designed by Richard Meier & Partners in collaboration with executive architect Architects Hawaii and a team of local consultants.

In other news, the Pacific Business News reports that the Hawaii Housing Finance and Development Corp.’s board of directors has selected OliverMcMillan Inc. to develop a nearly 27-acre parcel in Kapolei in West Oahu into a 400-unit mixed-use residential complex.

The project is situated at the entryway of the community at the corner of Fort Barrette Road and Farrington Highway.

Upon completion, the new residences will be priced for households with incomes of less than 140 percent of the area median income. Plans also call for 154,000 square feet of retail space, 6,300 square feet of office space, community amenities and park areas.

The San Diego-based developer is also building the Symphony Honolulu condominium tower across from the Neal S. Blaisdell Center in Honolulu.

Photo credit: The Howard Hughes Corp.

For our most recent Hawaii office, retail and industrial market snapshot, click here.

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