Building boom begins to slow down

  Duane Shimogawa Reporter – Pacific Business News With 4,386 residential units under construction, permitted or pending approval in Kakaako, the state agency overseeing the redevelopment of Honolulu’s so-called Third City is noticing a slowdown in the current condominium boom. “You can already tell the market is slowing down,” said Hawaii Community Development Authority spokeswoman…


 

The 801 South Street project on the site of the former Honolulu Advertiser Building is among the developments that are moving forward.
The 801 South Street project on the site of the former Honolulu Advertiser Building is among the developments that are moving forward.

Duane Shimogawa Reporter – Pacific Business News

With 4,386 residential units under construction, permitted or pending approval in Kakaako, the state agency overseeing the redevelopment of Honolulu’s so-called Third City is noticing a slowdown in the current condominium boom.

“You can already tell the market is slowing down,” said Hawaii Community Development Authority spokeswoman Lindsey Doi. “Developers did what they wanted to do. We can’t predict the future, but it kind of seems like we saw the peak last year. We’re thinking that was the most.”

Four residential projects totaling 1,568 units are under construction, including Alexander & Baldwin’s 341-unit Waihonua at Kewalo and OliverMcMillan’s 388-unit Symphony Honolulu.

A&B’s 467-unit The Collection and The Howard Hughes Corp.’s three condos totaling 919 units are on the list of permitted projects.

Rick Stack, A&B’s senior vice president of development, said the company has no specific timetable for construction.

“Timing will depend on a variety of factors, including achieving acceptable presales and completing the regulatory approval process,” he told PBN in an email.

Projects awaiting HCDA approval include Stanford Carr’s and Gerding Edlen’s 632-unit Keauhou Lane and Castle & Cooke’s and Kamehameha Schools’ 183-unit projects on Keawe Street.

“When it slows down, developers might want to add projects [to existing developments] or floor area for commercial projects,” Doi said. “We’re still looking at building active community areas.”

Kamehameha Schools, one of the major players in the area, says it is pleased with the progress in getting its projects moving. Its “Our Kakaako” master plan includes nearly 30 acres and nine full-block parcels with 2,750 residential units and commercial space.

“Kamehameha Schools is really thrilled with the way the community itself has sparked an entrepreneurial spirit, created a connected place, bringing different people together and bringing different opportunities,” said Paul Quintiliani, senior director of commercial real estate. “We’re thrilled to death about that.”

The Howard Hughes Corp., another major Kakaako landowner, began its transformation of Ward Centers last year into Ward Village, an urban master-planned community that will include approximately 4,000 residential units and more than 1 million square feet of retail and commercial space.

“We are excited to be part of the development taking place in Kakaako, which will benefit the state of Hawaii as a whole,” Senior Vice President of Development Nick Vanderboom told PBN in an email. “Ward Village will be part of a thriving integrated community that is environmentally sustainable, making a vibrant place where people can live, work and play.”

He noted that the Howard Hughes Corp. communicates frequently with Kamehameha Schools to ensure that their long-term plans are coordinated to create a sustainable community.

“We believe that Kamehameha Schools and their development efforts will contribute to making the Kakaako area a better place,” Vanderboom said.

But, challenges remain.

The Howard Hughes Corp., for example, points out that it is in a rare and fortunate position of having 60 acres of land in its master plan, which has a deep and distinct cultural history.

“We are committed to creating a place that breathes new life into the area while also continuing to pay homage to its history,” Vanderboom said. “With that, we have worked closely with the recognized cultural descendants of the area and our cultural advisers to rise to that challenge and ensure that Ward Village is designed and developed to exist in harmony with the cultural heritage and history of this area.”

Kamehameha Schools is in a similar position as a major landowner in Kakaako.

“There are lots of challenges, millions of square feet of improvements, regulatory challenges, community concerns,” Quintiliani said. “For us, it’s just to continue to remind ourselves why we are doing this and staying true to that vision. We want a vibrant, connected, beautiful community that acts as a place for innovation. That’s what we’re working towards.”