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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

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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.

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$500M Remake of Kauai’s Princeville Resort to Bring 600 Jobs

1 Dec 2014, 2:53 pm

By Adriana Pop, Associate Editor

With the $500 million redevelopment of an approximately 1,100-acre portion of the Princeville Resort in Hanalei on Kauai’s North Shore, the Garden Isle’s economy could gain as many as 600 permanent jobs, along with an annual multimillion-dollar cash flow.

In a $343 million deal, the property was recently acquired through a partnership between Hawaii landowner and developer The Resort Group and Reignwood International, owned by Thai-Chinese businessman Chanchai Ruayrungruang.

According to the Pacific Business News, the redevelopment project is expected to span the next decade.  Plans call for 350 residential units, a possible boutique hotel, a newly upgraded Prince Golf Course, as well as a spa, wellness center, polo fields, equestrian course, airport, beach club, hiking trails, mountain biking and ocean adventure activities.

Scottsdale-based real estate developer and manager Discovery Land Co. has been selected to manage the resort starting Jan. 1.

“The Princeville lands are truly sacred, and we intend to develop them in a way that pays homage to their purity,” Michael Meldman, founder, chairman & CEO of Discovery Land Co., said in a statement. “We are fortunate to be in partnership with The Resort Group and Reignwood, both of whom share our strong belief that responsible development draws inspiration from the environment and local customs of the property’s location.”

Discovery Land also developed the Kukio Resort on the Big Island, a private oceanfront community whose members include Dell Inc. founder Michael Dell, and is currently involved in the $230 million planned redevelopment of the Makena Resort on Maui. The company now has 18 projects in its portfolio.

“Discovery Land Co. brings a wealth of experience in designing and managing high-end residential club communities, golf courses and resorts to Princeville,” added Jeff Stone, founder of The Resort Group. “They share our deep respect for the natural beauty and traditions of the Princeville lands, as well as our vision for sustainable, long-term development that will bring lasting economic benefits to our local ohana and our island community.”

Photo credits: www.princeville.com

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JW Marriott Ihilani’s Transformation into a Four Seasons Resort to Cost $500M

20 Nov 2014, 4:42 am

By Adriana Pop, Associate Editor

Hawaii real estate developer Jeff Stone has partnered with Canada-based Westbank to buy and re-brand the JW Marriott Ihilani hotel at the master-planned Ko Olina community in West Oahu. Cornerstone Real Estate Advisers LLC is the seller of the property, which will be redeveloped into a Four Seasons resort.

According to the Honolulu Star-Advertiser, Stone’s company, The Resort Group, and its Canadian partner will invest an estimated $500 million into the project, which includes $250 million for the hotel’s acquisition and another $250 million for its redevelopment.

Plans include a major overhaul of the property’s existing 401 units, as well as the construction of a new 15-story tower with 150 luxury residences, the island’s first Four Seasons-branded estates.

“This is the fulfillment of a long-held dream for Ko Olina,” Stone said in a news release. “The economic impact of the project, the return to the state and county, is over $1 billion. This is a real hotel with real residences that are part of the hotel. No brand has ever come and done this.”

The renovation is scheduled to begin Jan. 10, following the expiration of the JW Marriott contract at the end of this year. This phase of the project will bring 195 guestrooms dedicated for hotel use, along with 206 resort condominium residences priced between $1.5 million and $5 million. It will also include a wedding chapel, two new main pools, seven private pools, a coconut grove, a remodeled resort entry, a lobby atrium with a ceiling-to-floor 3-D art piece, as well as a new grand staircase and water promenade.

The hotel is expected to reopen in December 2015, while construction on the new high-rise, designed by Japanese architect Toyo Ito, should begin in January 2016. The prices of the new units are estimated to range between $5 million and $10 million.

Honolulu-based Group 70 International is also involved in the project, along with James K.M. Cheng Architects, Philpotts Interiors and SWA Group.

During the renovation, Ihilani’s 500 employees will receive severance packages and medical benefits totaling $5.2 million. Upon completion, the new resort is expected to employ 800 people. It will be renamed Four Seasons Resort Oahu at Ko Olina (or “place of joy” in Hawaiian).

“We welcome the very first Four Seasons hotel or resort to Oahu. The addition of this world-renowned hotel brand will enhance Oahu’s tourism base and support economic growth on the leeward coast. The city looks forward to working with Four Seasons on their expansion plans and the growth opportunities they bring to Ko Olina,” added Honolulu Mayor Kirk Caldwell.

The Canada-based Four Seasons hotel management company — which operates properties on Maui, the Big Island and Lanai — first attempted to bring its luxury brand to Ko Olina in 1990, and then in 2008, when the economy stalled. It currently manages the Four Seasons Resort Maui at Wailea, the Four Seasons Resort Hualalai at Historic Kaupulehu on the Big Island, the Four Seasons Resort Lanai at Manele Bay and the Four Seasons Resort Lanai, The Lodge at Koele.

Photo credits: Four Seasons Resorts

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Construction Begins on A&B’s “The Collection” Condo High-Rise in Downtown Honolulu

27 Oct 2014, 4:38 am

By Adriana Pop, Associate Editor

A&B Properties held a traditional Hawaiian groundbreaking and blessing ceremony for its $200 million, 465-unit luxury condominium complex in Honolulu, the Pacific Business News reports.

The Collection Luxury Condominium Complex in Honolulu

Called The Collection, the project is being developed on the former 3.3-acre CompUSA site at 600 Ala Moana Blvd., a single urban block in the city’s Kakaako neighborhood.

The new mixed-use community, for which construction is scheduled to be complete in late 2016, will comprise three residential components. The initial development phase, The Tower, will bring 397 two- and three-bedroom units with ocean and mountain views. More than 75 percent of the new residences within the planned 43-story high-rise have already been sold, with prices starting from the low $600,000s. Amenities will include a swimming pool, a spa, barbecue dining pavilions, a fitness center and entertainment rooms.

The second phase, The Lofts @ The Collection, will consist of 54 condominiums within a four-story, mid-rise building. Priced from the mid-$300,000s, these units opened for pre-sale on Aug. 23 and sold out in less than a day.

The final phase of The Collection will include 14 urban townhomes, for which plans will be announced at a later date.

Upon completion, the project will also include 13,000 square feet of commercial space for shops and restaurants.

Earlier this month, Alexander & Baldwin’s real estate subsidiary purchased the site of the planned development from Kamehameha Schools. Terms of the deal were not disclosed.

“As a Hawaii-based company with a 144-year history in the islands, A&B Properties is committed to creating homes for Hawaii residents to live, play and raise their families,” A&B president & COO Christopher Benjamin said in a news release. “The Collection is a project by a local company for local people, and we are proud and honored that over 85 percent of our homebuyers are Hawaii residents.”

The Collection is part of Kamehameha Schools’ Our Kakaako master plan in Honolulu, which would spread across nine blocks along Ala Moana Boulevard, between South Street and Ward Avenue. Four other developers also plan construction of residential buildings in the area, including Stanford Carr, Castle & Cooke Homes, Gerding Edlen, and a partnership between the MacNaughton Group and Kobayashi Group.

A&B is the developer of two other high-rise condominium projects in Honolulu, Keola Lai, which opened in 2008, and Waihonua at Kewalo, which is nearing completion.

Photo credit: A&B Properties

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

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