Could more luxury high-rise towers rise at Hawaii’s Ala Moana Center?

Park Lane Ala Moana 1488 Ala Moana BlvdHawaii’s largest shopping mall, Ala Moana Center in Honolulu, is already home to luxury condominiums ONE Ala Moana and the Park Lane Ala Moana project under construction and may become home to another condo or two in the future, multiple sources tell Pacific Business News.

“There have been many rumors floating around regarding more residential condominiums attached to Ala Moana [Center],” Trevor Benn, president and principal broker of Honolulu-based Benn Pacific Group Inc., told PBN in an email Wednesday.

He noted that the 23-story Ala Moana Building, which houses mostly medical and dental providers, has been discussed as a potential condo development site, as well as the Macy’s location.

Additionally, the nearby 18-story Ala Moana Pacific Center, which has a mix of corporate tenants and service providers, will likely remain an office building since mall owner General Growth Properties Inc. (NYSE: GGP) does not own the entire land area in fee right now, Benn said.

Tenants in these buildings were told that they will get to stay in their spaces beyond 2019, the general manager of the buildings told PBN earlier this year.

Last year, several tenants maintained that Chicago-based General Growth was not extending leases past 2019. But General Growth later began extending leases in both office buildings.

“I think the success of ONE Ala Moana has shown that the mall is a powerful amenity,” Benn said. “Park Lane is nearly 70 percent sold, at record prices averaging $5 million per unit. With a possible rail [transit] stop near the SamKoo project on Kapiolani [Boulevard], you will have a lot of the key elements for a robust walkable community.”

South Korean developer SamKoo Development has plans to build two mixed-use high-rise projects near Ala Moana Center, which includes a total of nearly 1,000 units consisting of both affordable and moderately-priced units, a company executive told PBN in March.

“It remains to be seen, however, what the absorption rate will be for ultra-luxury condos in light of the inventory available,” Benn said. “There are a lot of options for a buyer with millions to spend, but how many buyers are there at those prices?”

Steve Sofos, president of Honolulu-based Sofos Realty Corp., told PBN that the notion of building more residential projects at Ala Moana Center seems to be a trend nationwide, as the live-work environment with housing and retail is becoming stronger in Hawaii’s marketplace.

The recently completed ONE Ala Moana condominium atop the Nordstrom parking garage and Park Lane Ala Moana are part of a growing trend of luxury residential developments being built at shopping centers in the United States.

The Wall Street Journal recently cited several projects similar to the Ala Moana projects, both developed by Hawaii developers The MacNaughton Group and Kobayashi Group. The Howard Hughes Corp., BlackSand Capital and General Growth are also involved in these projects.

The Wall Street Journal noted several factors behind the push behind this real estate phenomenon, including an uptick in the market, the growing need for developers/owners to create walkable, urban environments, as well as these residential developments becoming great investments for all parties involved, including buyers.

Duane Shimogawa
Pacific Business News

Ala Moana Center parking levels to be completed in late 2015

This rendering shows the six ultra-luxury condominium buildings planned for a portion of Ala Moana Center. The project will have a total of 215 units, according to a building permit filed with the City and County of Honolulu.

This rendering shows the six ultra-luxury condominium buildings planned for a portion of Ala Moana Center. The project will have a total of 215 units, according to a building permit filed with the City and County of Honolulu.

Ala Moana Center parking levels to be completed in late 2015

Duane Shimogawa Reporter – Pacific Business News

Ala Moana Center’s retail parking levels, which are currently being reconstructed as part of the Honolulu mall’s $573 million redevelopment of a former Sears space, should be completed by November 2015, coinciding with the opening of the Ewa wing’s retail expansion, according to a senior director of development for mall owner General Growth Properties.

Francisco Gutierrez of Chicago-based General Growth Properties (NYSE: GGP) recently gave an update to the Ala Moana/Kakaako Neighborhood Board regarding the state’s largest mall’s renovations and expansion.

He noted that the planned condominium project on the makai side of the center from Piikoi Street to Neiman Marcus would be about 100 feet tall, which is under the current height limit, and would not require special permits.

Construction on the $300 million, 215-unit “Park Lane Ala Moana” project, which is being developed by The MacNaughton Group, Kobayashi Group, BlackSand Capital and landowner General Growth, is expected to begin mid-2014 and completed by late 2016.

The project, which has an address of 1488 Ala Moana Blvd., includes multiple low-rise towers atop the mall’s parking deck, was first reported by PBN.

Ultra-luxury project at Ala Moana Center to include 215 condo units

Feb 5, 2014, 2:55pm HST
Duane Shimogawa Reporter – Pacific Business News

This rendering shows the six ultra-luxury condominium buildings planned for a portion of Ala Moana Center. The project will have a total of 215 units, according to a building permit filed with the City and County of Honolulu.

This rendering shows the six ultra-luxury condominium buildings planned for a portion of Ala Moana Center. The project will have a total of 215 units, according to a building permit filed with the City and County of Honolulu.

The planned seven ultra-luxury condominium towers to be built on what is now a parking area of Ala Moana Center fronting Ala Moana Boulevard will include 215 units with 109 two-bedroom units, 65 three-bedroom units, 36 one-bedroom units and five five-bedroom penthouses, according to a permit filed recently with the City and County of Honolulu.

The application for the “Low Rise Residential” project includes no other details, except that the estimated sewer connection date is set for Dec. 31.

PBN first reported on the project, which is being developed by Honolulu developers The MacNaughton Group and Kobayashi Group as well as the Hawaii-based investment firm BlackSand Capital and mall owner General Growth Properties (NYSE: GGP).

The eight-story buildings, which will be 100 feet tall, range in size from 850-square-foot units to 6,000-square-foot units and will have 2.5 floors of commercial parking.

No price ranges for the units were given for the project, which will be built adjacent to the Bloomingdale’s store under construction at Ala Moana Center. It is scheduled to start in mid-2014, with a completion date in 2016.

Nordstrom (NYSE: JWN) is also moving its Ala Moana store to that end of the mall, along Piikoi Street, and a Whole Foods Market (NYSE: WFM) is being planned for the ground floor of that store.

Luxury_Oahu_Estates_$2M -_$3M

Luxury_Oahu_Estates_$3M -_$4M

Luxury_Oahu_Estates_$4M -_$5M

Luxury_Oahu_Estates_$5M -_$6M

Luxury_Oahu_Estates_$6M -_$8M

Luxury_Oahu_Estates_$8M – 10M

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