Hawaii agency delays decision on redevelopment of Kewalo Basin Harbor lands

Howard Hughes Corp. to start work this fall on Kewalo Basin Harbor redevelopment in Honolulu

Howard Hughes Corp. to start work this fall on Kewalo Basin Harbor redevelopment in Honolulu

The Hawaii Community Development Authority has delayed making a decision on two separate proposals from two developers on renovations to the lands surrounding Kewalo Basin Harbor in the Honolulu neighborhood of Kakaako.

At its regular meeting on Wednesday, which lasted until nearly 6 p.m., the state agency that regulates development in the area heard once again from The Howard Hughes Corp. (NYSE: HHC) and Kewalo Waterfront Partners, a partnership between two Japanese firms, and planned to make decision.

But after heading into executive session, John Whalen, chairman of the HCDA board, said that the board needed more time to consider the two plans, and noted that some board members were not present to vote.

The board plans to make a decision on what to do with the three parcels surrounding Kewalo Basin Harbor at its meeting on Dec. 2.

The Howard Hughes Corp. has plans for all three parcels surrounding the harbor — the former McWayne Marine Supply site, the charter boat building site and the former National Oceanic and Atmospheric Administration lot.

Kewalo Waterfront Partners, which includes Good Luck International Corp. and Hinamari Hawaii Inc., has plans to renovate four buildings totaling 45,000 square feet at the former McWayne Marine Supply site. Although Kewalo Waterfront Partners only submitted a plan for this site, it does plan to do small renovations at the other two lots.

Its original plan that mostly remains the same for the former McWayne Marine Supply site, which is between Ala Moana Beach Park and Kewalo Basin Harbor, includes a permanent indoor farmer’s market, food halls, a chef’s club, a signature cafe, a beachside cafe, a multi-use venue that could host weddings, a live music venue, a sunset lounge, a public viewing dock, a lei stand, a community garden, a water feature and a parking structure.

Kewalo Waterfront Partners, in its updated plan, broke the buildings down into five parcels, included a convenience store and refined the project’s architecture. Building heights also were lowered and more ground level parking was added.

Ron Iwami, president of the community group Friends of Kewalos, spoke in opposition of Kewalo Waterfront Partners’ plan mainly because it is too dense. He said he prefers The Howard Hughes Corp.’s plan because it is less dense and said that the developer has been listening to his group from the start.

The Kewalo Waterfront Partners’ project, over a 30-year span, would bring in more than $100 million in lease revenue, be responsible for $1 million in off-site infrastructure improvements, create 800 jobs and 250 parking stalls.

Howard Hughes, whose 60-acre Ward Village master-planned community is across the street and which manages the harbor, significantly scaled down its plans, including doing more landscape improvements and upgrades to the lot between Ala Moana Park and Kewalo Basin Harbor.

At the charter boat building lot, the developer plans to add grab-and-go vendors that will provide items such as bottled water, sunscreen, slippers and towels, as well as a take-out lunch place.

In former NOAA lot, the developer plans to pay homage to the “ice house” that was once located at the site and was used to supply ice to harbor-based fishing boats. The Kewalo Ice House would be transformed to include indoor-outdoor courtyards, bringing people together with shared interests in art, food, music and the ocean.

In total, Howard Hughes lowered its project cost for improvements to the existing buildings and open spaces to $6 million, according to Race Randle, vice president of development for the Texas developer.

Randle said the developer would like to renovate all three lots, and that whatever happens, the projects need to be holistically planned and implemented at one time because the lots surround a working harbor with many small businesses that need to be kept in mind as improvements are made to the surrounding lands.

Dean Okimoto, owner of Nalo Farms in Windward Oahu, opposesthe Texas developer’s plan for the Kewalo Basin Harbor lands and is in favor of the Kewalo Waterfront Partners’ project because it supports local farmers.

He raised concerns about The Howard Hughes Corp. already owning and operating the 60-acre Ward Village across the street, and that the developer would only be monopolizing the area even more if its proposals are chosen.

Duane Shimogawa
Reporter
Pacific Business News

Howard Hughes Corp. may ‘adjust’ prices for some units at Honolulu condo tower

Whole Foods MarketSEE CORRECTION AT THE END OF THIS ARTICLE

The Howard Hughes Corp. says it may “adjust” the sales price of its remaining condominium units in its Aeo mixed-use residential project in Honolulu in response to the high demand and interest seen since an initial lottery began last month for the project, which will include Whole Foods Market’s new Hawaii flagship store.

An e-mail sent by Ward Village Residential Sales Director Dwight Synan to prospective buyers said the new prices will take effect on Aug. 10. He also noted that all of the studio units in Aeo, which had a starting price of $405,016, were sold out.

He said people who have already expressed interest in the project can purchase a unit at the old price before the price increase takes effect.

As it is currently proposed, The Howard Hughes Corp. (NYSE: HHC) has said the 466-unit complex will also include 60,000 square feet of retail spaces. Construction on the project, which will be built on the Office Depot and former Nordstrom Rack site behind the Ward Entertainment Center complex, is slated to be complete by 2018.

Under the new price list, prices for one-bedroom units will start at $817,000. Initially, the starting price for those units was $573,000, but all the lower-priced units have sold out. Prices for two-bedroom units will start at $1.04 million, instead of the previous $860,000 since those lower-priced units have also sold out. Prices of three-bedroom units will start at $1.76 million.

Some real estate industry experts say the decision to increase prices is not a surprising one and are the result of demand for more housing options.

“It’s uncommon, but it is market driven, and we have an uncommon market relative to the rest of the world,” Ricky Cassiday, real estate economist from Data@Work, told PBN in an email. “Hawaii residential property can be very volatile, especially on the upside. Historically, we have seen price appreciation at double-digit increases.”

Jon Yamaguchi, president and CEO of his Yamaguchi & Yamaguchi Inc. real estate appraisal and consulting services company, said the big question now is what type of role will speculative buyers will eventually have on the market.

“Those are the ones who are going to hurt the market because we’ve seen it before,” Yamaguchi said. “If you’re spread very thin, you don’t have the financial backing, and you’re banking on flipping it, but it doesn’t happen because there’s too much supply, then you’re going to have all of these guys who are going to start dumping and that’s when you start having a falloff market.”

Construction also is continuing on the Texas-based developer’s Waiea and Anaha mixed-use towers nearby, which are slated to be finished at the end of 2016 and the second quarter of 2017, respectively. Meanwhile, the design process is being finalized for the master planned community’s 988 Halekauwila project, which will have 375 one-, two- and three-bedroom affordable units and is slated to be complete by 2019.

CORRECTION
The story has been revised to clarify that the lower-priced units have sold out.

Darin Moriki
Reporter
Pacific Business News

 

Hawaii agency approves Howard Hughes’ Kakaako residential project

This rendering shows The Howard Hughes Corp.'s planned 988 Halekauwila project

This rendering shows The Howard Hughes Corp.’s planned 988 Halekauwila project

The Hawaii Community Development Authority gave its final approval Wednesday on The Howard Hughes Corp.’s Kakaako residential project at 988 Halekauwila St.

The Texas-based developer plans to start construction on the mostly affordable for-sale condominium tower across from Sports Authority by late 2016, according to its senior vice president of development, Nick Vanderboom.

“We have no exact timeframe,” he said to the HCDA board. “We’re committed to moving the project forward as fast as we can in order to bring it to the market.”

The project, which was originally approved by the HCDA as a for-sale development, was then proposed by the developer as a rental project.

However, the HCDA board struck down that request and told Howard Hughes to stay with its original plan as a for-sale project.

Its original permit includes building a tower with 424 for-sale units, including 375 reserved units.

“Ward Village looks forward to working with the HCDA board and towards a shared vision for a healthy, livable Kakaako that the entire community will enjoy and appreciate,” said David Striph, senior vice president of Hawaii for The Howard Hughes Corp., in a statement. “We are committed to affordable housing at Ward Village, and will do so with a for-sale project at 988 Halekauwila, as originally approved by the HCDA. [On Wednesday], we finalized the next steps to move the project forward as quickly as possible.”

The project, which is being planned for the former site of the Kanpai Bar & Grill and Dixie Grill, and the current California Rock ‘N Sushi, is part of The Howard Hughes Corp.’s first phase of its 60-acre Ward Village master plan.

Under the current rules, Howard Hughes can’t move people into its Waiea and Anaha luxury condos, which are also part of phase one, until it puts financial assurance that it will build 988 Halekauwila, or starts construction on the project.

Duane Shimogawa
Reporter
Pacific Business News

Luxury Honolulu condo Waiea foregoes … trash chutes?

A penthouse in the proposed Waiea tower in The Howard Hughes Corp.'s Ward Village in Honolulu, seen in this rendering has a price tag of $20 million, the developer said Friday.

A penthouse in the proposed Waiea tower in The Howard Hughes Corp.’s Ward Village in Honolulu, seen in this rendering has a price tag of $20 million, the developer said Friday.

The Howard Hughes Corp.’s Waiea luxury condominium, currently under construction in the Texas-based developer’s 60-acre Ward Village in Kakaako, was designed and is being built without trash chutes, the developer confirmed to PBN.

The 36-story, 171-unit condo going up on a former parking lot across from the Ward Consolidated Theatres is one of the first high-rises in Honolulu to skip this common feature.

The developer’s other luxury condo, Anaha, being built diagonally across from Waiea on a former Pier 1 Imports site, has trash chutes.

Race Randle, vice president of development for The Howard Hughes Corp., told PBN in an email that Waiea has been designed with trash and recycling rooms on each floor, in lieu of trash chutes.

“This is based on common practice in luxury high-rise developments in cities such as Vancouver and London where trash and recyclables are conveniently collected by staff,” he said. “This proven method, which is being applied to Waiea, offers an added level of service to residents, ensuring effective service and encouraging recycling as part of our LEED Platinum neighborhood.”

When asked by PBN whether other planned condos in Ward Village would have trash chutes, the developer would not specify if any other projects would follow Waiea’s trash and recycling room design, only to say that this method may be applied to future buildings at Ward Village.

In its condo public report released in November, The Howard Hughes Corp. said that there would be no trash chutes in Waiea.

For at least two other condo developments currently under construction in Kakaako, Alexander & Baldwin Inc.’s The Collection and OliverMcMillan’s Symphony Honolulu, trash chutes are being incorporated into the projects, according to their condo public reports.

Waiea was designed by award-winning Vancouver-based architect James K.M. Cheng in collaboration with Honolulu architect Rob Iopa, president of WCIT Architecture.

Nordic PCL Construction is the general contractor for the project at 1118 Ala Moana Blvd.

Duane Shimogawa
Reporter
Pacific Business News

Lottery to start sales for half of 466 condo units in Howard Hughes’ Aeo project

aeo_wholefoodsLottery to start sales for half of 466 condo units in Howard Hughes’ Aeo project

The Howard Hughes Corp. is opening sales for its third Honolulu condominium tower in its Ward Village master plan, Aeo at 1001 Queen Street, this weekend with 234 of the building’s total 466 units being offered to owner-occupants in a public lottery.

The building, which is being designed by Bohlin Cywinski Jackson, will also have 60,000 square feet of retail, including Hawaii’s flagship Whole Foods Market store, is being built on the former Nordstrom Rack and Office Depot site behind the Ward Entertainment Center, is scheduled to be completed in 2018.

It’s the third tower to start sales for Texas-based Howard Hughes Corp. (NYSE: HHC), which said in May that its two other towers under construction, the 171-unit Waiea project and the 311-unit Anaha project, were more than 75 percent sold.

Prices for the owner-occupant units at Aeo, whose buyers will be required to use them as their principal residence for at least one year, begin at $405,016 for a 409-square-foot one-bath studio, $573,000 for a 612-square-foot one-bedroom, one-bath unit; $860,000 for an 860-square-foot two-bedroom, two-bath unit; and $1.39 million for a 1,239 square-foot three-bedroom, three-bath unit.

The public lottery for the units will be held on Saturday at the Howard Hughes sales office at the IBM Building at 1240 Ala Moana Blvd., Suite 100.

Darin Moriki Reporter Pacific Business News

Sales to begin at Ward Village’s Aeo at 1001 Queen Street tower

Sales, including an owner-occupant lottery, are slaeo_star_03ated to begin Saturday, July 18, for Aeʻo at 1001 Queen Street.

The 466-unit mixed-use condominium tower will be built at the corner of Queen and Kamakee streets, and include Hawaii’s future flagship Whole Foods Market.

Construction is expected to be completed in 2018.

Ae‘o will include studios and one-, two- and three-bedroom units ranging from 409 to 1,331 square feet, each including partial ocean views. Prices start in the low $400,000s.

Amenities include a lap pool with ocean views, a dedicated family activity area with pool and children’s play area, a climate-controlled gym, an outdoor lanai for yoga and meditation, a wellness center with steam and sauna rooms, a theater, surfboard and bicycle storage, and outdoor dining spaces.

Ae‘o (pronounced “eye-oh”) is named after the Hawaiian stilt bird. The building is designed by architects Bohlin Cywinski Jackson and will feature a contemporary exterior inspired by the patterns of local trade winds.

Hundreds enter lottery for Ae’o condominiums at Ward Village

About 450 people on Saturday entered the owner-occupant “lottery” to buy a condominium at Ae’o in Ward Village.

The 466-unit mixed-use condominium tower will be built at the corner of Queen Street and Kamakee Street, and includes Hawaii’s future flagship Whole Foods Market.

KHON2 got a tour of one of the models.

The development offers studios, one, two and three-bedroom units.

Each will include partial ocean views and prices start in the low $400,000 range.

KHON2 spoke to one woman who was at the lottery for her daughter.

“She would just walk out of the condo, get her groceries go to restaurants, anything like that she would love it,” said Lindy Hashimoto.

Amenities include a lap pool with ocean views, a family area with a pool, a gym and a wellness center with steam and sauna rooms.

Construction is expected to be completed in 2018.

http://khon2.com/2015/07/18/hundreds-enter-lottery-for-aeo-condominiums-at-ward-village/

Interest high in condos at Ae’o with Whole Foods in equation

aeo_star_01A lottery will be held Saturday for condo sales in the planned Ae‘o tower at Ward Village. Pictured is a model of the Ae‘o condominium complex, which will be built at Kamakee and Queen streets.proper prior planning precents piss poor performance

The prospect of living above a Whole Foods store in Kakaako has attracted considerable interest for condominium units in a planned tower at Ward Village where an initial group of buyers will be selected by lottery Saturday.

Howard Hughes Corp., the developer of the tower called Ae‘o, said prospective buyers enrolled in the lottery as of Wednesday outnumber available condo units. However, only 234 of 466 units in the tower are available for sale.

“We received kind of overwhelming demand for the building,” said Race Randle, the company’s vice president of development in Hawaii. “A tremendous response.”

The 40-story Ae‘o represents the fourth planned high-rise condo to begin sales at Ward Village — a master plan approved for up to 22 towers on 60 acres.

Of the four towers being sold, Ae‘o has the most units and is the least pricey even though the average price is about $1 million.

Prices for Ae‘o units range from $405,016 for a studio with 409 square feet of living space to $2 million for a three-bedroom unit with 1,331 square feet of living space.

Hughes Corp. began offering 234 units for sale on July 8 to would-be buyers who will live in the units as owner-occupants for at least a year. The remaining 232 units will be offered for sale later without restrictions.

Sybil Saito, a local resident who entered the lottery, said she and her husband are interested in downsizing from their four-bedroom home in Waialae Nui to a two-bedroom unit in Ae‘o.

Being able to walk to the beach and a movie theater — along with having a Whole Foods downstairs — lent appeal to the idea of living in the growing urban Honolulu high-rise community, Saito said. Also, three adult children in the family will have graduated from college by 2018 when Ae‘o is slated to be completed.

“The timing is great,” said Saito, who was born and raised in Honolulu. ”We’ve always lived in a house. We might be ready to do something different.”

Applications for the lottery will be accepted until midnight Friday. The order of lottery tickets selected will allow ticket holders to sign purchase contracts for units that remain available.

Ae‘o is adjacent to the city’s planned rail line and will replace an Office Depot store and space previously occupied by Nordstrom Rack at the makai-Ewa corner of Queen and Kamakee streets behind the movie theaters at Ward Village. The tower is among a growing number of new Honolulu condo buildings integrated with big retail stores.

At Ala Moana Center, Hawaii’s largest shopping center, the One Ala Moana condo tower opened in November adjacent to Nordstrom above the store’s parking garage, and construction is underway on the Park Lane Ala Moana condo adjacent to a planned Bloomingdale’s store.

Nick Vanderboom, Hughes Corp.’s senior vice president of development, said residents in Ae‘o will be able to walk into the 50,000-square-foot Whole Foods store from a second-floor connection in the building.

“I think a lot of people love the concept of living above a grocery store,” he said. “They don’t have to shop for the whole week. You can almost go there every day.”

Ae‘o is part of the second phase of Ward Village. The first phase began with construction of two luxury condo towers, Waiea and Anaha, last year.

According to the most recent quarterly financial report from Texas-based Hughes Corp., 148 of 177 units at Waiea had been sold as of April 30 for an average $3.7 million. At Anaha, 241 of 311 units had been sold for an average of $1.3 million as of April 30.

A more moderate-priced tower called 988 Halekauwila with 424 units expected to roughly range from $300,000 to $700,000 is part of phase one, but has been delayed by financing issues and an unsuccessful attempt by Hughes Corp. to convert the condo project to rentals earlier this year.

The second phase of Ward Village includes one other tower for which Hughes Corp. has begun sales. That tower is one of two referred to as the Gateway Towers on part of where Ward Warehouse stands. Sales began July 7 for 63 units reserved for owner-occupants in the 125-unit ultra-luxury tower that Vanderboom said is priced similar to Waiea.

By Andrew Gomes

aeo_star
http://www.staradvertiser.com/newspremium/20150716_Interest_high_in_condos_at_Aeo_with_Whole_Foods_in_equation_.html?id=315748061

Howard Hughes switches Kakaako tower back to for-sale condo units, not rentals

This file rendering shows The Howard Hughes Corp.'s planned 424-unit, mostly affordable

This file rendering shows The Howard Hughes Corp.’s planned 424-unit, mostly affordable

The Howard Hughes Corp. has changed its plans for a Kakaako residential project back to a mostly affordable for-sale condominium tower after requesting a Hawaii agency approve the project as a rental development, an executive from the Texas-based developer confirmed to PBN Thursday.

David Striph, senior vice president of Hawaii for The Howard Hughes Corp. (NYSE: HHC), told PBN in an email Thursday that the company looks forward to working with the Hawaii Community Development Authority board and toward a “shared vision for a healthy, livable Kakaako that the entire community will enjoy and appreciate.”

“We are committed to affordable housing at Ward Village, and will do so with a for-sale project at 988 Halekauwila, as originally approved by the HCDA,” he said. “We are working with the board to find a way to move the project forward as quickly as possible that works for all.”

The HCDA originally approved the developer’s 988 Halekauwila St. project, which will be built across from Sports Authority on Ward Avenue, as a for-sale development.

However, earlier this year, Howard Hughes Corp. filed a request with the HCDA to change the Ward Village project to a rental development.

Last month, the state agency, which regulates development in the Honolulu neighborhood, struck down the developer’s request, but a final decision isn’t expected until next month.

The HCDA board took up the issue this week, but after receiving the new proposal to switch the project back to a for-sale project decided to reconvene on July 22 to discuss the project further.

“We got the new proposal minutes before the hearing,” John Whalen, chairman of the board for the HCDA, told PBN Thursday. “It’s a complex proposal. It’s hard to absorb, so we weren’t able to accept it [yet].”

The project, which is being planned for the current 404 Ward Ave., the former site of the Kanpai Bar & Grill and Dixie Grill, and the current California Rock ‘N Sushi, is part of The Howard Hughes Corp.’s first phase of its 60-acre Ward Village master plan.

Duane Shimogawa
Pacific Business News

The Howard Hughes Corp. paid to replace Iolani Palace’s broken door

Hawaii's Iolani Palace, the only royal palace in the United States

Hawaii’s Iolani Palace, the only royal palace in the United States

The Howard Hughes Corp. donated the $11,552 used to replace the original glass in one of the doors of Hawaii’s Iolani Palace that was damaged by vandals a little more than a year ago, the heads of the historic Honolulu building and the developer confirmed to PBN Friday.

In March, repairs to the door were completed with funding from an undisclosed source.

Kippen de Alba Chu, executive director for Iolani Palace, confirmed to PBN that The Howard Hughes Corp. (NYSE: HHC), which is redeveloping a large portion of Kakaako as part of its Ward Village Master Plan, paid for the repairs of the door.

David Striph, senior vice president of The Howard Hughes Corp.’s Hawaii office, told PBN that the company was honored to play a part in the restoration efforts of Iolani Palace.

“The Ward Village Foundation is committed to supporting local nonprofit organizations who perpetuate Hawaiian culture,” he said in an email.

The glass portion of the door had to be repaired by a California artist and flown in from the Mainland.

Iolani Palace, the only royal palace in the United States, was used as an official residence by reigning monarch, was built in 1879 and was governed by two monarchs, King Kalakaua and Queen Liliuokalani.

Duane Shimogawa
Pacific Business News

Company Disclaimer: Information is deemed reliable but not guaranteed.