Workshops scheduled on Ward Village affordable condo units in Kakaako

KeKilohanaThe Howard Hughes Corp. on Tuesday said it will hold educational workshops next week for buyers interested in the 375 affordable units that will be built at its 43-story, mixed-use Ward Village tower called Ke Kilohana at 988 Halekauwila.

The project, which will be located at the corner of Ward Avenue and Halekauwila Street and have a Long’s Drugs store on the ground floor, will have a total of 424 residential units, including 375 reserved, or affordable, units for local residents and 49 market-priced units.

The one-, two- and three-bedroom units will range in size from 461 square feet to 2,106 square feet, and prices will start in the $300,000s.

The developer plans to hold four workshops on Jan. 10 at the Hawaii Convention Center. Workshops held last month drew more than 1,000 residents and brokers, the developer said.

Janis L. Magin
Managing Editor
Pacific Business News

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Longs Drugs to open Hawaii store in Ward Village’s 988 Halekauwila mixed-use project in Kakaako

long_ward_villageLongs Drugs will open a new Hawaii location in Ward Village’s 988 Halekauwila mixed-use tower in Kakaako that’s scheduled to be ready for occupancy in 2019, Howard Hughes Corp. executives confirmed to PBN on Tuesday.

“It’s something that has always been on our wish list for quite some time,” Katie Kaanapu, community and retail marketing director for The Howard Hughes Corp. (NYSE: HHC), told PBN. “It’s in a really central location, so it’s easy for our residents and visitors to access, whether they are coming by rail, or walking or biking to the area.”

As it is currently proposed, the 23,000-square-foot, full-service Longs Drugs store will be located on the ground floor of 988 Halekauwila, which will have 375 one-, two- and three-bedroom reserved affordable housing units.

The store will be located across the street from the future Kakaako Station for Oahu’s elevated-rail mass-transit system.

“Ward Village is committed to making Honolulu a better place for our local community to live, work, shop and play,” Nick Vanderboom, senior vice president of development for The Howard Hughes Corp., said in a statement. “This new Longs Drugs will allow Ward Village residents and other members of the nearby community to comfortably meet their daily needs with greater convenience.”

Though an opening date has not been set, Kaanapu said the entire 988 Halekauwila project is slated to be complete in 2019. Designs for the building are being finalized, she said.

Last week, the Hawaii Community Development Authority gave its approval for the project to proceed with 424 for-sale units, including 375 reserved units. Earlier, it had rejected The Howard Hughes Corp.’s request to turn them into rental units.

Construction also is continuing on the Texas-based developer’s Waiea and Anaha mixed-use towers, which are slated to be finished at the end of 2016 and the second quarter of 2017, respectively.

Meanwhile, condominium sales have begun for The Howard Hughes Corp.’s 466-unit Aeo project, which is scheduled to be complete in 2018.

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

Hawaii agency board to make final decision on Howard Hughes residential project in June

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 Howard Hughes Corp. is not quite sure what its next step would be after a Hawaii agency unanimously struck down its request to move ahead with its previously approved Kakaako residential project at 988 Halekauwila as a rental project, the Texas-based developer told PBN.

However, a spokeswoman for the Hawaii Community Development Authority told PBN Thursday that the developer’s lawyers indicated that they will file exceptions to their application, so the board will take final action on June 24.

On Wednesday, the HCDA, which has a new set of board members, voted to deny the developer’s request to change the Ward Village project from a mostly affordable for-sale project to a rental project.

Steven Scott, vice chair of the HCDA and owner of Scott Hawaii, told PBN Thursday that the developer should abide by its original permit, which includes building a tower with 424 for-sale units, including 375 reserved units.

The project’s development permit was set to expire on July 17, although the HCDA voted Wednesday to approve an extension for two years.

David Striph, senior vice president for Hawaii for The Howard Hughes Corp. (NYSE: HHC), told PBN in an email that an approval of the developer’s request would have extended the length of regulations keeping the units affordable to 15 years for tenants at 80 percent to 100 percent of area median income, compared to for-sale units that would only remain affordable for two to five years for buyers at 100 percent to 140 percent of area median income.

For a single person, the Honolulu area median income at 80 percent is $46,256, while it’s $57,820 at 100 percent and $80,948 at 140 percent, according to the U.S. Department of Housing and Urban Development.

“This new board has stated their intention to listen to the voice of our community, and public testimony was overwhelmingly in support of approving the project for 15 years,” Striph said in an email to PBN. “We are disappointed the project was not approved because our community suffers when the delivery of much-needed affordable housing is slowed down or stopped.”

He noted that, in spite of this setback, Howard Hughes is dedicated to providing a wide range of housing in Honolulu for local residents.

“[We] look forward to exploring alternatives to satisfy our reserved housing requirements for Ward Village,” Striph said. “There is much greater need for affordable housing in Honolulu than there is for for-sale condominiums. Approximately five times the number of households on Oahu would have qualified to rent at 988 Halekauwila versus those that are qualified to buy.”

Under the HCDA’s old rules, projects could be utilized as rentals for a minimum of 15 years or longer. But in 2011, new rules came into effect that set the timer period for affordable rentals at a fixed 15 years.

“Under the Howard Hughes plan that it inherited from [General Growth Properties Inc.], it’s a minimum of 15 years,” Scott said. “Then when they went to get their permit in April 2013 for Waiea and Anaha, they said they would be building 375 reserved units for sale at 988 Halekauwila. That would satisfy their affordable requirements.”

Then in January, Howard Hughes said it wanted to make the change from a for-sale to a rental project for 15 years.

“The previous board had put out a study in March, which recommended that if it is a rental project, it should be for 30 years, and that the area median income percentage should be reduced from 140 percent to 120 percent,” Scott said. “When this proposal came to us on April 1, the sentiment was that 15 years is too short. In terms of affordable housing, it should be longer, and in 15 years, they could turn around and sell those units at fair market value, turning it from a co-op to a condo.”

In February, Howard Hughes officially requested the ability to proceed with its 988 Halekauwila project, which will be built across from Sports Authority on Ward Avenue, as a rental development.

The developer previously told PBN that if the request was approved, it would in no way impact the number of reserved housing units — 375 — provided at 988 Halekauwila, which represent three times the number of units required for phase one of Ward Village.

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

Scott told PBN that 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
Pacific Business News

Moving ForWard March Newsletter

988HalekuwilaToday Howard Hughes Corp announced our revised plans for the 988 Halekauwila project that, if approved by the Hawai‘i Community Development Authority (HCDA), would provide more affordable rentals to residents in urban Honolulu. The Howard Hughes Corporation submitted a motion to the HCDA for the option to allow the previously approved for-sale residences at 988 Halekauwila to be built as workforce rentals. If approved, Ward Village will be able to offer homes to a significant number of local families and individuals earning 80 to 100 percent of the area median income (AMI). The building would be Honolulu’s largest affordable rental development in decades.

“Ward Village is master-planned to provide quality homes for owners and renters at different income levels,” said David Striph, senior vice president of Hawai‘i for The Howard Hughes Corporation. “We want local individuals and families who live and work in the area to find their future home at Ward Village and are requesting this change to help fulfill the need for workforce housing in Honolulu, offering more local residents the opportunity to live in a master-planned neighborhood complete with community amenities.”

The 988 Halekauwila project is currently approved as for-sale and would be reserved for residents making 100 to 140 percent of the AMI. Rental units, which are available to those with lower average median incomes making 80 to 100 percent of the AMI, help meet the community’s need for long-term affordable housing. For a single person, 80 to 100 percent of AMI equates to an annual salary of $53,700 to $57,820. This offers greater affordability than the for-sale option for individuals making up to 140 percent of AMI, which equates to an annual salary of $80,948. The change to offer units as rental will not change the number of reserved housing units – 375 – offered by the project. It will also extend the period of affordability required for the units from two to five years (for-sale) to 15 years (for-rental).

“The addition of affordable rentals for our local community is a positive step in the right direction,” said Rev. Bob Nakata, Co-Chair of the Housing Task Force for Faith Action for Community Equity. “This request is a positive sign that developers and the HCDA are beginning to pay attention to and working to build what the community needs.”

Ward Village’s 988 Halekauwila project exceeds the number of units required by the HCDA for Phase One of the Ward Village Master Plan by three times the amount. Located on the mauka-ewa corner of Ward Avenue and Halekauwila Street, 988 Halekauwila is an integral component of the Ward Village Master Plan and will feature one-, two- and three-bedroom workforce housing residences within walking distance of shopping, entertainment, parks, beaches and the revitalized Kewalo Harbor. The building will target LEED certification as part of Ward Village, which is certified as the state’s only LEED for Neighborhood Development (LEED-ND) Platinum-Certified community.

Ward Village will offer a four acre privately-maintained public park, complete streets with wide, shaded, pedestrian-friendly sidewalks and bike lanes and is in close proximity to existing bus lines and the future Ward Village rail station. Retail located on the ground floor of the building will provide convenient shopping options for the residents

Moving ForWard March Newsletter

http://us8.campaign-archive1.com/?u=7a647eabb433c20dfbade3136&id=b114fc2b4c&e=f26031cf9d

The Howard Hughes Corp. advances Kakaako rental project

This rendering shows The Howard Hughes Corp.'s planned rental project at 988 Halekauwila, part of the developer's 60-acre Ward Village master-planned community.

This rendering shows The Howard Hughes Corp.’s planned rental project at 988 Halekauwila, part of the developer’s 60-acre Ward Village master-planned community.

The Howard Hughes Corp. has officially requested the ability to proceed with its previously approved residential project at 988 Halekauwila across from Sports Authority in Honolulu as a rental development, a senior vice president for the Texas-based developer confirmed to PBN.

“By offering rental units, we will be able to better meet the need for affordable housing by reaching significantly more people at lower average median incomes,” Nick Vanderboom, senior vice president of development for The Howard Hughes Corp.’s Ward Village, told PBN in an email. “Approval of this request would extend the length of regulations keeping the units affordable to 15 years at 80 percent to 100 percent of median income compared to for-sale units that would only remain affordable for two to five years at 100 percent to 140 percent of median income.”

For a single person, the Honolulu area median income at 80 percent is $46,256, while it’s $57,820 at 100 percent and $80,948 at 140 percent, according to the United States Department of Housing and Urban Development.

Vanderboom said that if this change happens, it will in no way impact the number of reserved housing units — 375 — provided at 988 Halekauwila, which represents three time the number of units required for phase one of Ward Village.

“This project also fulfills the reserved housing requirements for future phases of Ward Village in response to the demand for affordable homes in Honolulu,” he said. “Ward Village is dedicated to providing a range of housing in our community for local residents.”

The Hawaii Community Development Authority, the state agency overseeing the redevelopment of Kakaako, has not set a meeting date on the project, a spokeswoman for The Howard Hughes Corp. told PBN.

The project, which will be located on what is the former site of the Kanpai Bar & Grill and the current California Rock ‘N Sushi, is part of the developer’s first phase of its 60-acre Ward Village master plan.

Duane Shimogawa Reporter – Pacific Business News

Howard Hughes Corp. withdraws petition for reserved units at Kakaako residential project

This rendering shows The Howard Hughes Corp.'s planned 424-unit, mostly affordable condominium at 988 Halekauwila, part of the developer's Ward Village master-planned community.

This rendering shows The Howard Hughes Corp.’s planned 424-unit, mostly affordable condominium at 988 Halekauwila, part of the developer’s Ward Village master-planned community.

The Howard Hughes Corp. is temporarily withdrawing its petition dealing with reserved housing units on its 424-unit residential tower planned for 988 Halekauwila in Honolulu’s Kakaako neighborhood as part of the first phase of its Ward Village master plan.

The Howard Hughes Corp. (NYSE: HHC) said that 375 of the total number of units will be offered at prices lower than the market-rate luxury condo towers.

“Ward Village is dedicated to helping fulfill the housing needs of our neighborhood, [and] we have listened to the community and have heard great demand for more affordable options, including rentals at lower income levels,” Race Randle, senior director of development for the Texas-based developer, said in a statement. “In response to this message from our community, we have asked for clarification of [Hawaii Community Development’s] rules to better understand what options are available.”

He also said that “due to the misunderstanding of our request, we have decided to temporarily withdraw it so that we can further clarify our intentions to the appropriate stakeholders.”

“This rule clarification in no way changes our commitment to build 375 reserved housing units at 988 Halekauwila, nor does it change our strong commitment to creating a diverse community at Ward Village with an array of housing options and price points, including affordable and market-rate housing,” Randle said.

The developer noted in its second quarter earnings report that it is finalizing plans for this project, and that as of June 30, it has spent $3.8 million on developments costs on the project, which will be located on what is the former site of the Kanpai Bar & Grill and the current California Rock ‘N Sushi.

The project also will include six levels of parking and about 23,000 square feet of retail space.

Duane Shimogawa Reporter – Pacific Business News

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