Kamehameha Schools’ $90M Keauhou Lane

Kamehameha Schools’ $90 million Keauhou Lane mixed-use project is scheduled to break ground next month in the Honolulu neighborhood of Kakaako, the developer said Monday. It includes 209 rental units and about 32,300 square feet of restaurant and retail space

Oregon-based Gerding Edlen is developing the project on behalf of the state’s largest private landowner, which also will include 280 parking spaces.

Keauhou Lane will include a blend of studios, one-bedroom and two-bedroom rentals aimed at individuals and families earning up to $67,000 annually and $95,000 annually, respectively.

A key part of the project will be the pedestrian paseo that will connect Keauhou Lane and Keauhou Place residential lobbies, the various restaurant and retail establishments and the Honolulu Authority for Rapid Transportation’s new civic center station.

Stanford Carr Development’s Keauhou Place, which is located on the same block at 500 South St. and 500 Keawe St., includes 388 residential units in a 400-foot tower, along with 35 townhome units in a 42-foot mid-rise tower. The project, which includes a rail transit station, has already started construction.

Keauhou Lane is in the process of obtaining LEED for Homes Gold certification.

Both projects are expected to be completed around the same time, which is roughly the second or third quarter of 2017.

Pacific Business News
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Kamehameha Schools may lease Kakaako lands intended for condo towers, exec says

Kamehameha Schools will eventually lease the vacant buildings on two three-acre lots in Kakaako, where developers scrapped plans to build at least one luxury condominium tower, the trust’s top executive in its commercial real estate division confirmed to PBN Wednesday.

The state’s largest private landowner is in the midst of concluding matters with The MacNaughton Group and Kobayashi Group, the two developers that planned to build a luxury high-rise tower called Vida 888 at Ala Moana that was shelved because of slow sales. The developers had options to purchase the two parcels.

“We will be looking at leasing opportunities and considering development proposals for those blocks, just as we are with our other remaining blocks in Kakaako,” Walter Thoemmes, managing director of commercial real estate for Kamehameha Schools, told PBN. “At this point, though, our focus is on working with [The MacNaughton Group and Kobayashi Group] on a smooth and orderly transition.”

Kamehameha Schools’ “Our Kakaako” master plan includes nine blocks — four of which are under contract to such developers as Castle & Cooke Hawaii and Stanford Carr Development. Alexander & Baldwin Inc. purchased another parcel, the former CompUSA site, where it is building The Collection condo tower.

Kamehameha Schools, a $11.1 billion trust, is currently in its seventh year of this 15-year plan, which at the start, included seven residential towers that have 2,750 units and 300,000 square feet of commercial space.

Kamehameha Schools’ Kakaako project going as planned, exec says

Walter Thoemmes, managing director of commercial real estate for Kamehameha Schools

Walter Thoemmes, managing director of commercial real estate for Kamehameha Schools

Redeveloping its 30-acre piece of the Honolulu neighborhood of Kakaako is, by far, the biggest commercial real estate development project Kamehameha Schools is currently undertaking.

Walter Thoemmes, managing director of commercial real estate for the $11 billion educational-focused trust, recently told PBN in an exclusive interview, that Kakaako is turning out to be nearly exactly how it planned it to be.

The state’s largest private landowner wanted to make money in an environment that was not just about attracting luxury buyers, but instead a variety of buyers at different price points.

Thoemmes, who only has been at his current top post leading commercial real estate for Kamehameha Schools for a few months, credits his predecessor, Paul Quintiliani, who moved to California to be closer to his family, as the reason for the success in Kakaako.

“It was really Paul and his team that really understood that and structured deals that way,” he said. “If you looked at them side by side, there’s The MacNaughton Group and Kobayashi Group’s luxury project right next to The Howard Hughes Corp.’s luxury projects. Then there’s Alexander & Baldwin Inc.’s The Collection, a step down, Castle & Cooke Inc. and Stanford Carr Development’s projects that we’re doing rentals as part of those two projects.”

Rentals are a good type of housing product for Kamehameha Schools because it can maintain an ownership in the property.

“That is an important consideration when you think of our heritage,” Thoemmes said. “[Bernice “Pauahi” Bishop] only left us land. This whole financial portfolio came from forced land sales. We take the selling of land seriously, so we can have the opportunity to maintain the community and make money on land we own.”

Retail is another strong product for the trust because it is a long-term stabilized cash flow for them.

“We couldn’t get that out of Kakaako until you built the rooftops,” Thoemmes said. “Our plan is 2,750 units. That level of density and resident population will support the commercial we envision in the area for a long time.”

An example of its retail presence being built up in the area is its Salt at Our Kakaako restaurant and retail complex, which is in its final stages.

Retail tenants that fit in with Kamehameha Schools’ plan in Kakaako are resident-servicing, local if possible.

“The things you and I live with, not the big box,” Thoemmes said. “We want more resident-servicing and we’re not done yet.”

Duane Shimogawa
Reporter
Pacific Business News

‘Interim uses’ to be part of Kamehameha Schools’ ‘Our Kakaako’ plan

Alexander & Baldwin Inc.'s The Collection is one of several residential projects underway in Kamehameha Schools' 'Our Kakaako' plan

Alexander & Baldwin Inc.’s The Collection is one of several residential projects underway in Kamehameha Schools’ ‘Our Kakaako’ plan

As Kamehameha Schools enters its sixth year in its 15-year “Our Kakaako” master plan, which covers nine blocks mauka of Ala Moana Boulevard in Honolulu, there may be some parts of the development that will be utilized for “interim uses,” the chair of the trust’s board of trustees told PBN.

Lance Wilhelm, chairman of Kamehameha Schools’ Board of Trustees, said that interim uses describes the trust’s leasing activities within the blocks not yet under construction.

He noted that in those circumstances, as it has done with some of the retail frontage in what will eventually become “Salt at Our Kakaako,” Kamehameha Schools was able to find small businesses that needed flexible space either to incubate an idea or launch a new concept.

“Those uses, while relatively short term, help create excitement and bring new energy to a space that might otherwise sit dormant for an extended period of time,” Wilhelm, the former Kiewit Hawaii executive who is now managing principal for California developer Irongate, told PBN in an email. “Ultimately, it will be the market that dictates the exact nature and timing of any development activity in Our Kakaako, and that market remains very strong today.”

The projects currently underway include Alexander & Baldwin Inc.’s The Collection, Castle & Cooke Hawaii’s 400 Keawe project and Kamehameha Schools’ restaurant and retail center, Salt at Our Kakaako.

“[These] are examples of the active developments we expect to help bring life to Our Kakaako and support Kamehameha’s educational mission,” Wilhelm said. “All nine blocks continue to be planned for development in conformance with the entitlements that are in place, and most of them are already under active construction or in preparation for same.”

Duane Shimogawa Reporter – Pacific Business News

Kamehameha Schools’ may not develop all parcels in ‘Our Kakaako’ plan

A rendering of one of several "Our Kakaako" residential projects in the growing Honolulu neighborhood.

A rendering of one of several “Our Kakaako” residential projects in the growing Honolulu neighborhood.

Kamehameha Schools, Hawaii’s largest private landowner, and one of the major developers of the growing Honolulu neighborhood of Kakaako, probably won’t develop all of the parcels in its “Our Kakaako” plan — at least during this current economic cycle — the chairman of the $9.2 billion trust’s board recently said at a construction industry event.

“These [remaining] blocks will be [utilized] for interim uses,” said Lance Wilhelm, managing member of California-based Irongate and chairman of the board of trustees for Kamehameha Schools.

Thus far, the trust, which is one of the larger landowners in Kakaako, has contracted with some of the state’s most well-known developers, including Alexander & Baldwin, Castle & Cooke Homes Hawaii, Stanford Carr Development, The MacNaughton Group and Kobayashi Group, to build housing projects on those parcels.

Our Kakaako consists of nearly 30 acres on nine city blocks, seven residential towers that include 2,750 units and 300,000 square feet of commercial space.

It’s not quite clear which blocks won’t be developed.

The Howard Hughes Corp., the single entity that owns the most land in Kakaako, is conducting a different approach to developing its parcels.

The Texas-based developer is developing its own master-planned community, which is being dubbed, “Ward Village.”

It has development rights to some 20 high-rise towers in the area.

PBN reached out to Kamehameha Schools and Wilhelm for comment on Tuesday.

Duane Shimogawa Reporter – Pacific Business News

Honolulu Seawater A/C could be cooling Kakaako high-rise condos

The Honolulu Seawater Air Conditioning project, which expects to start construction this fall on the system to cool Downtown Honolulu office buildings and condominium towers with cold water from the ocean, may be expanding to cool the scores of high-rise condos being built nearby in the growing Honolulu neighborhood of Kakaako, the project’s CEO told PBN.

“There is enough load for us to expand into Kakaako,” Eric Masutomi, president and CEO of Honolulu Seawater Air Conditioning LLC, the project’s developer, told PBN.

He noted that the company has had talks with the two largest landowners in Kakaako — Kamehameha Schools and The Howard Hughes Corp. — regarding the usage of its project, although the Texas-based developer has shown more of an interest at this point.

“Systems like district cooling systems appeal to them greatly,” said Masutomi, who also has pointed out that Maui and Kauai are potential sites for seawater A/C projects.

Race Randle, senior director of development of The Howard Hughes Corp.’s Ward Village in Kakaako, told PBN Monday that, at this time, it does not currently have plans to utilize the Honolulu Seawater A/C system, although it is open to exploring the option of incorporating the system into its projects should the system become more available.

“The Ward Village Master Plan has been thoughtfully designed to incorporate the highest standards of environmental sustainability,” he said in an email to PBN. “Each of our projects in our LEED-ND Platinum certified neighborhood is being built with sustainable practices in mind.”

Masutomi has said that other areas that have seawater A/C potential on Oahu include Kaneohe, Ko Olina and Pearl Harbor.

The Honolulu Seawater A/C project, which would cost more than $250 million to develop, is designed to cool water to provide air conditioning to buildings in Downtown Honolulu by pumping deep ocean water through a pipeline more than four miles offshore to a cooling station in Kakaako.

The company has scored several big wins lately, with eBay founder Pierre Omidyar’s impact investment company Ulupono Initiative becoming the main investor of the project and the signing of two well-known buildings in Honolulu — The Queen’s Medical Center and the Alakea Corporate Tower.

Masutomi said he anticipates that the project should be in service by March 2017.

Kamehameha Schools did not immediately respond to a request for comment from PBN Monday.

Duane Shimogawa Reporter – Pacific Business News

Alexander & Baldwin paid $23M to buy Kakaako lot from Kamehameha Schools

This rendering shows The Collection, A&B Properties' planned 466-unit mixed-use condominium project it plans to build on the former CompUSA site in Honolulu's Kakaako neighborhood.

This rendering shows The Collection, A&B Properties’ planned 466-unit mixed-use condominium project it plans to build on the former CompUSA site in Honolulu’s Kakaako neighborhood.

Alexander & Baldwin Inc.’s real estate subsidiary paid $23 million to Kamehameha Schools to purchase the three-acre former CompUSA lot in Kakaako, the site of the Honolulu-based developer’s 465-unit mixed-use The Collection condominium project, according to public records.

In October, A&B Properties Inc. said it purchased the lot, which is bounded by Ala Moana Boulevard, and Auahi, South and Keawe Streets, from Kamehameha Schools for an undisclosed price.

The $200 million project, which is made up of three residential components — The Tower’s 397 units, The Lofts @ The Collection’s 54 units and 14 urban townhomes — began construction in October at the 600 Ala Moana Blvd. site.

The tower part of the project is more than 75 percent sold, while the lofts sold out within a day. The townhomes are expected to be on the market before the end of the year.

A&B Properties said that Hawaii residents represent 85 percent of buyers to date of the tower and loft components of The Collection.

The project is estimated to be completed in late 2016.

Duane Shimogawa Reporter – Pacific Business News

Alexander & Baldwin buys land at its planned The Collection condominium in Kakaako

This rendering shows The Collection, A&B Properties' planned 466-unit mixed-use condominium project it plans to build on the former CompUSA site in Honolulu's Kakaako neighborhood.

This rendering shows The Collection, A&B Properties’ planned 466-unit mixed-use condominium project it plans to build on the former CompUSA site in Honolulu’s Kakaako neighborhood.

Alexander & Baldwin Inc.’s subsidiary has acquired the three acre former CompUSA lot in Kakaako from Kamehameha Schools that it will use to develop its 466-unit mixed-use The Collection condominium project. Construction is scheduled to start soon and estimated to be completed in late 2016.

Terms of the deal were not disclosed.

Located at 600 Ala Moana Blvd., the $200 million project is made up of three residential components.

The Tower, which is currently 76 percent sold, and includes 397 units in a 43-story building, is the project’s initial component.

The second phase is The Lofts @ The Collection, which consists of 54 condo residences within a four-story mid-rise building, and sold out in less than a day.

Plans for the final phase of The Collection, 14 urban townhomes, will be announced at a later date.

The Collection, which is bounded by Ala Moana Boulevard, and Auahi, South and Keawe Streets, also has 13,000-square-feet of commercial space planned for shops and restaurants.

Duane Shimogawa Reporter – Pacific Business News

Honolulu’s Kakaako gains first ‘parklets’ in front of Hank’s Haute Dogs

The trendy Honolulu neighborhood of Kakaako, which is in the midst of gaining thousands of new residents in a bunch of high-rise ondominiumss being built in the area, is following a growing trend in Mainland cities such as San Francisco when it comes to public outdoor spaces.

Landowner Kamehameha Schools has unleashed a couple of custom-designed “parklets” on Coral Street in front of the popular Chicago-style hot dog eatery Hank’s Haute Dogs.

Parklets, which are basically public outdoor spaces created by extending a platform over curbside parking to create a user-friendly area for pedestrians to sit and relax, have been incorporated into other major cities such as Chicago, New York and Philadelphia.

“Our new parklets are not only utilitarian, but with their unique design and features, they truly reflect the diversity and creative spirit of ‘Our Kakaako,’” Paul Kay, director of real estate development for Kamehameha Schools, said in a statement. “They enhance the neighborhood and inspire a sense of community. They also benefit surrounding local businesses by increasing foot traffic and providing a place for people to relax.”

Kamehameha Schools said that parklets are an integral part of its master plan for Our Kakaako, a mixed-use master plan for nine contiguous city blocks between South Street and Ward Avenue.

The private trust noted that it worked with the City and County of Honolulu’s transportation and planning departments on the parklets project.

If successful in Kakaako, the city may develop guidelines for expanding the project into other neighborhoods.

“All the cool and vibrant cities are doing these kinds of creative things,” said George Atta, director of the city’s Department of Planning and Permitting. “The moribund cities are not. Honolulu is cool and vibrant.”

The Coral Street parklets were designed by Honolulu-based Ink Architects, and built by Honolulu-based Sunworks Construction and Honolulu’s PLS Builders.

The 9-foot by 22-foot parklets were built with re-purposed materials from the neighborhood.

Duane Shimogawa Reporter – Pacific Business News

Hawaii agency approves Castle & Cooke-Kamehameha Schools condominium project

This rendering shows a workforce housing complex being developed by Castle & Cooke Homes Hawaii and Kamehameha Schools in the Honolulu neighborhood of Kakaako. Courtesy Kamehameha Schools

This rendering shows a workforce housing complex being developed by Castle & Cooke Homes Hawaii and Kamehameha Schools in the Honolulu neighborhood of Kakaako.
Courtesy Kamehameha Schools

The Hawaii Community Development Authority on Tuesday unanimously approved a joint development by Castle & Cooke Homes Hawaii and Kamehameha Schools that will add 183 condominium units on Keawe Street in Honolulu.

Castle & Cooke’s portion of the project will include 95 condos in a 65-feet-high mid-rise building in Kakaako. Seventy-five of the units will be sold at market prices and 20 units will be considered affordable housing.

The company said in a statement that it was pleased by the authority’s decision. This the company’s first condo project in urban Honolulu.

“The project will provide distinctive home ownership opportunities for working families that is located close to downtown Honolulu and the future transit line,” Bruce Barrett, executive vice president at Castle & Cooke, said in a statement.

The project also includes 9,680 square feet of retail space, 145 parking stalls and 1,411 square feet of open space.

Kamehameha Schools’ part of the project includes 88 workforce housing condos, 165 parking spaces and 10,066 square feet of recreation space.

At a recent public hearing, only one person spoke against the project.

Bill Cresenzo Reporter – Pacific Business News

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