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Construction Nears for Island Paradise Investments’ $75M Senior Care Community in Waikiki29 Aug 2014, 10:42 pm
Island Paradise Investments of San Francisco will soon break ground on a $75 million, 17-story senior living facility at the entrance to Waikiki on Kalakaua Avenue.
According to Senior Housing News, the Kalakaua Garden will offer 106 assisted-living units, 32 memory care units and 49 skilled nursing beds.
The building will be located at 1723 Kalakaua Ave., across from the Hawaii Convention Center and adjacent to Ala Moana Beach Park.
Amenities will include a garden and water feature on the ground floor, a fourth-floor courtyard, a 1,800-square-foot outdoor exercise area on the sixth floor, as well as a library, fitness center, rehabilitation facilities and common and semi-private dining options.
Island Paradise Investments’ original plan in 2008 called for a residential condominium, but the project stalled in the recession. In 2011, the company opted to develop a senior care community on the site instead.
“The year 2008 marked the beginning of the recession and was the same year that the Kalakaua Garden first began to sell units for the condominium,” Mark Tacazon, assistant marketing manager for the property’s general contractor Swinerton Builders, told Senior Care News. “Also, over the next several years, Hawaii was experiencing the over saturation of newly constructed high-rise condominiums which drove the price up for construction costs and further delayed the project.”
Island Paradise Investments’ project team includes general contractor Swinerton Builders, of San Francisco; HPL Development L.L.C., of San Mateo, Calif.: and Honolulu-based Architects Hawaii Ltd.
Construction is expected to be completed in late 2015.
According to Louis Leong, vice president of HPL Development, the new community’s rental prices will be higher than rates on the mainland, but comparable to prices at similar local properties.
Photo credits: Architects Hawaii
D.R. Horton Division Submits Rezoning Request for Hoopili Master-Planned Community; Avalon Launches Sale of 17 Industrial Parcels25 Aug 2014, 4:45 am
D.R. Horton — Schuler Homes LLC has formally filed a rezoning petition with the city and county of Honolulu’s Department of Planning and Permitting for its 11,750-home Hoopili master-planned community in West Oahu.
According to the Pacific Business News, the Texas-based developer is asking officials to change the land-use designation of a 1,289-acre property from agricultural to urban.
Slated to rise on more than 1,500 acres of land between Kapolei, Ewa and Waipahu, the Hoopili development calls for the construction of single- and multi-family homes, commercial and light industrial space, community facilities, parks, open space, three elementary schools, one middle school and a high school.
Approximately 264 acres will be maintained as agricultural and will be used for commercial agriculture, community gardens, open space and infrastructure. Honolulu-based Group 70 International is the designer of the project.
If approved, the new master-planned community could break ground in 2016. Cameron Nekota, the vice president for D.R. Horton — Schuler Homes, told the newspaper that the first homes could be delivered in 2017.
Opponents of the project argue that the Hoopili development is not the right use for the land and that the state cannot afford to give up such a large area of prime agricultural land for urban use. Furthermore, they claim that traffic could become worse in an already congested area.
In other news, Avalon Development Co. held a blessing ceremony for the long-awaited last phase of the Kapolei Business Park in the heart of Oahu’s “Second City.” The company has also put 17 of the property’s fee-simple industrial lots on the market.
“With the blessing of the site, we begin our multimillion-dollar infrastructure construction. We will begin selling lots in this project while we continue constructing the infrastructure – roads, drainage, sewer, electrical and other improvements – to prepare the property so the new lot owners can build a diverse collection of businesses and facilities,” said Avalon president & CEO Christine Camp.
The Pacific Business News reports that Avalon Development purchased the 54-acre Kapolei Business Park Phase 2 in April for an undisclosed price.
Guy Kidder and Scott Mitchell of Colliers International, the real estate brokerage team that handled the original acquisition of the site, are also brokering the sale of the lots, which range from one to four acres.
The parcels are expected to sell quickly, since there are virtually no similar vacant industrial lots on the Oahu market other than in Kapolei.
Delta Construction is in charge, with the initial $12 million increment of the infrastructure project, which is expected to reach a total contract value of approximately $16 million.
Photo credit: Group 70 International
Maui Officials Green-Light A&B’s 600-Unit Residential Project in Kihei; Larry Ellison Buys Historic Hotel on Lanai9 Aug 2014, 5:11 am
The Maui County Council has granted the final zoning approval for a 600-unit housing project that would spread across 95 acres of land in Kihei on South Maui.
Proposed by A&B Properties, the real estate subsidiary of Alexander & Baldwin Inc., Kihei Residential will bring a mix of single-family and multi-family homes, along with parks, open space and a 1.4-acre commercial center.
The Maui News reports that the council’s approval of the $220 million community was accompanied by a list of conditions, including a requirement that A&B provide vehicle access between the development and any future collector road or potential mauka (inland) bypass.
According to Christopher Benjamin, Alexander & Baldwin president & COO, a significant number of the 600 homes will be affordably priced, and will be among the first to be delivered when the company begins closing sales in 2018. Prices for the new residences are expected to range between $300,000 and $600,000.
The developer’s next steps are to advance engineering and design work for the project and to pursue subdivision approval.
In other news, the Pacific Business News reports that Oracle Corp. CEO Larry Ellison has acquired the historic Hotel Lanai on the Pineapple Island for an undisclosed amount.
Mary Charles, her husband Tom Kiely, and their nephew Mike Charles were the sellers of the property, which comprises the 10-room hotel, a one-bedroom cottage and a 90-seat restaurant called the Lanai City Grille.
“We loved our little business, but it just became so hard to survive,” Mary Charles told the newspaper. “Hotel occupancy for us was great, and in the 90 percent range, but the restaurant business, which is dependent upon the tourism trade, suffered.”
The property dates back to 1923. It was built by James Dole, the developer of the pineapple industry in Hawaii, and was the first and only hotel on the island until 1990.
Larry Ellison owns 98 percent of Lanai, as well as the island’s two Four Seasons-branded resorts, which it purchased from Castle & Cooke Inc. CEO David Murdock. The sale of the properties closed in 2012 for a reported $300 million.
Photo credit: www.hotellanai.com
JPMorgan Chase Affiliate Purchases Royal Hawaiian Center for Record $696.5M; Kahala Hotel & Resort Sells for $300M2 Aug 2014, 3:07 am
The sale of the Royal Hawaiian Center in Honolulu closed for $696.5 million, the Honolulu Star-Advertiser reports.
New York-based J.P. Morgan Asset Management, an affiliate of banking giant JPMorgan Chase & Co., acquired Waikiki’s largest shopping complex from Kamehameha Schools in June.
The transaction, which includes the mall buildings but not the underlying land, sets a new record for retail property in Waikiki.
“It achieved a high-water mark for a retail property in Waikiki, demonstrating the strong demand for investment properties in Hawaii,” Mike Hamasu, consulting and research director at Colliers International, told the newspaper. “I can’t imagine anywhere else would sell for $2,165 a square foot.”
Kamehameha Schools selected Eastdil Secured to find a buyer for the center in October 2013.
Built in 1979 and renovated in 2005, the Royal Hawaiian Center is located on a 6.3-acre parcel along a three-block stretch of Kalakaua Avenue. The property comprises more than 322,000 square feet of leasable area, with more than 110 shops and restaurants, including The Royal Grove, a unique 30,000-square-foot cultural venue reminiscent of Waikiki’s historic Helumoa coconut grove.
“Royal Hawaiian Center is one of the nation’s finest shopping venues and is an outstanding addition to our portfolio of best-in-class core retail properties,” Chris Graham, managing director & head of Western U.S. acquisitions for J.P. Morgan Asset Management, said in a news release.
In other news, Japanese company Resorttrust Inc. has agreed to purchase the upscale 338-room Kahala Hotel & Resort in East Honolulu for $300 million. The transaction is expected to close on Sept. 30, according to the property’s owner, Kahala Hotel Investors LLC.
The Pacific Business News reports that the hotel’s current employees and contracts with travel and marketing partners will be retained.
Open since 1964, the hotel operated as the Kahala Hilton for decades. In the 1990s, it was purchased by Japan-based Kahala Hotel Associates LLP and became a Mandarin Oriental property.
Honolulu-based Trinity Investments acquired the resort in 2005 and partnered with Landmark Hotels to manage it. It also changed the hotel’s name from the Kahala Mandarin Oriental Hawaii to its current designation.
Resorttrust, which is based in Nagoya, anticipates an annual cash flow of more than $9.7 million (approximately one billion yen), based on the hotel’s operating revenue.
Photo credit: www.royalhawaiiancenter.com
Affordable Housing Projects in Honolulu, Mililani Mauka Receive $4M in Tax Credits28 Jul 2014, 4:15 am
The Hawaii Housing Finance and Development Corp. (HHFDC) has awarded a total of $4 million in federal and state Low-Income Housing Tax Credits for the construction of two affordable apartment complexes in Honolulu and Mililani Mauka.
Located at 1025 Waimanu St. in Honolulu’s Kakaako neighborhood, the 84-unit Ola Ka Ilima Artspace Lofts project has received $2.1 million, of which $1.4 million was granted as federal tax credits and $712,500 as state tax credits.
Reserved for artists earning between 30 and 60 percent of the area median income, the new complex is being developed by Artspace, a Minnesota-based nonprofit real estate developer, in partnership with the Ford Foundation. The companies are also collaborating with the PAI Foundation, whose mission is to preserve and perpetuate Hawaiian cultural traditions for future generations.
“A first of its kind in Hawaii, the Ola Ka Ilima Artspace Lofts project serves our goals to generate more affordable housing opportunities through public-private partnerships,” Gov. Abercrombie said in a news release. “At the same time, we are able to support culture and the arts, which has a lasting benefit to the people of Hawaii. We are especially pleased to be working with the PA‘I Foundation and Executive Director Vicky Holt Takamine and President Kawika McKeague in support of Native Hawaiian cultural resources and Hawaii’s arts communities.”
According to the Pacific Business News, the $38 million project is being built on an empty parking lot owned by the HCDA. Upon completion in 2017, the residential complex will feature one-, two- and three-bedroom units in two eight-story buildings. Artspace is also planning to develop a two-story commercial component at the site, which will include 6,000 square feet of leasable space and 96 parking spaces.
HHFDC has also announced the allocation of an approximately $1.8 million grant for the construction of Meheula Vista 1, a 75-unit affordable senior rental complex in Mililani Mauka.
Developed by the Catholic Charities Housing Development Corp., the project received $1.2 million in federal credits and $597,845 in state credits.
The building, which is slated to rise on state land, will be the followed by three additional senior rental developments totaling another 225 units.
“With Hawaii’s population continuing to live longer, we owe it to our older residents to ensure there are opportunities for them to age in place, remain active and enjoy quality lives as engaged members of their communities to the benefit of us all,” Gov. Neil Abercrombie said. “I commend our state HHFDC team and the Catholic Charities Housing Development Corp. for working together to provide our kupuna additional affordable rent options close to family and friends.”
Photo credits: Artspace