Developer plans to start construction on $40M Kakaako condo in January

803 WaimanuCalifornia developer MJF Development Corp. plans to start construction on its $40 million Kakaako condominium mid-rise project in January 2016, to be completed in March 2017, according to public documents recently filed.

The developer said, in the 803 Waimanu St. draft environmental assessment, that it will finance the project by applying for a dwelling unit revolving fund loan through the Hawaii Housing Finance and Development Corp. and through conventional debt and equity.

Additionally, the sale of the condo units will be the “take-out” source, meaning that the revenue will be used to pay off the interim construction financing.

The seven-story condo will consist of 153 studio, one- and two-bedroom units and 91 parking stalls located between Waimanu and Kawaiahao Streets near Dreier Street.

The site is currently occupied by a warehouse with light industrial tenants and auto repair shops.

A total of 101 units are priced as affordable to the households between 80 percent of area median income (a person making $53,700 annually) and 140 percent of area median income (a person making $93,940 annually). The remaining 52 units are market rate.

In March, MJF Development acquired three properties where it plans to build its 803 Waimanu St. project in the Honolulu neighborhood of Kakaako for about $5 million.

The Hawaii Community Development Authority, which oversees the redevelopment of Kakaako, approved the project about a year ago.

MFJ Development is headed up by developer Franco Mola, who is also developing another Honolulu condo project at 929 Pumehana St.

“Ohana Hale” is a 21-story, 180-unit affordable and workforce condo project on a 14,400-square-foot lot.

Duane Shimogawa
Pacific Business News

California developer acquires three Honolulu properties for Kakaako condo project

MJF Development Corp. has acquired three properties where it plans to build a seven-story condominium in the growing Honolulu neighborhood of Kakaako for a total of about $5 million, a spokesman for the California-based developer confirmed to PBN this week.

The 803 Waimanu St. project, which includes 153 market-priced residential units from studios to two-bedroom units, is expected to begin construction later this year and be completed in 2017.

The Hawaii Community Development Authority, which oversees the redevelopment of Kakaako, approved the project about a year ago.

MFJ Development, which is headed up by developer Franco Mola, formed Eight Zero Three Waimanu LLC for the purchase of the three parcels that total about 21,200-square-feet of land and buildings that total about 20,800 square feet, according to public records.

The industrial parcels, which occupy warehouses, are located at 803 Waimanu St., 764 Kawaiahao St. and 802 Kawaiahao St.

The original plan for the project was withdrawn in July, which called for 217 workforce units in a 250-foot tower.

PBN first reported that MJF Development submitted a scaled-down proposal for the 803 Waimanu St. project.

The development also will have a mechanized ground-floor parking system with 92 parking stalls.

The developer also plans to build another condo project at 929 Pumehana St. in Honolulu.

“Ohana Hale” is a 21-story, 180-unit affordable and workforce condo project on a 14,400-square-foot lot.

The building floor area will be about 107,999 square feet.

About 60 percent or 108 of the project’s units will be priced in the affordable range for households earning between 100 percent and 120 percent of the area median income for Honolulu.

There will be studio, one- and two-bedroom units.

MJF Development hopes to start construction on this project sometime this year.

Duane Shimogawa Reporter – Pacific Business News

Hawaii agency approves 803 Waimanu condo project in Kaka’ako

Jan 8, 2014, 3:57pm HST
Duane Shimogawa Reporter – Pacific Business News

The Hawaii Community Development Authority has approved California developer Franco Mola's proposal for the 803 Waimanu St. project in Kakaako.

The Hawaii Community Development Authority has approved California developer Franco Mola’s proposal for the 803 Waimanu St. project in Kakaako.

The Hawaii agency in charge of overseeing the redevelopment of Kakaako on Wednesday approved another condominium project — 803 Waimanu St. — for Oahu’s so called Third City.

The Hawaii Community Development Authority unanimously approved the scaled-down project that’s being developed by California developer Franco Mola, by a vote of 7-0, according to a spokeswoman for the HCDA.

The project by Mola’s MJF Development Corp. consists of a 65-foot seven-story building with 153 market-priced residential units and includes a mix of studios, one- and two-bedroom units.

The development also will have a mechanized ground-floor parking system with 92 parking stalls.

The HCDA held an initial public hearing regarding the project on Nov. 6.

PBN first reported that Mola submitted a scaled-down proposal for the 803 Waimanu St. project in August.

Mola’s original plan, which was withdrawn in July, called for 217 workforce units in a 250-foot tower.

Moderate-priced units proposed for Kakaako

Honolulu is accustomed to housing booms — especially for luxury condominiums in the urban core. But a workforce housing boom may now be forming.

A developer has proposed a 217-unit workforce, or moderate-priced, condo tower in Kakaako on a roughly half-acre site now occupied by single-story industrial buildings.

A developer is proposing to demolish the single-story industrial buildings on a half-acre site between Kawai­ahao and Waimanu streets and build a 250-foot condo tower. Pictured is L&L Transmission at 803 Wai­manu St.

A developer is proposing to demolish the single-story industrial buildings on a half-acre site between Kawai­ahao and Waimanu streets and build a 250-foot condo tower. Pictured is L&L Transmission at 803 Wai­manu St.

MJF Development Corp., led by Franco Mola, is seeking a permit from the Hawaii Community Development Authority to develop the 27-story project, which would rise 250 feet.

Mola’s project application was filed last month shortly before the sellout of a 635-unit workforce condo tower called 801 South St. on a site nearby that is slated to be further developed with a second tower containing 400 units.

The Mola project and 801 South St. are products of a relatively new HCDA “workforce housing” rule giving developers extra density for buildings with at least 75 percent of units priced for buyers earning no more than 140 percent of Hono­lulu’s median income.

The income limit translates to about $96,000 for a single person or $137,000 for a family of four.

Other projects for workforce rentals in Kakaako are also in the pipeline, including the 204-unit Hale­kau­wila Place apartments that began construction earlier this year, the proposed 690 Pohu­kaina project calling for 804 apartments on state land, and 80 live/work lofts for artists.

Those three projects propose rents that would be affordable to tenants earning 50 percent to 140 percent of the median income.

HCDA, the state agency governing development in Kakaako, also requires that 20 percent of units in higher-priced condo tower projects be priced at the workforce level, and there are at least two such projects in the works.

Chuck Wathen, an affordable-housing advocate and executive director of Hawaii Housing Alliance, isn’t surprised by the rising volume of moderate-priced housing being proposed in Kakaako.

“We really need rentals, and … the supply of units for sale is almost nothing,” he said.

Wathen predicts that Mola’s project, if it comes to market, will almost certainly sell out. “We are basically supply-constrained,” he said.

Of all the workforce condo plans, 801 South St. is positioned to break ground first, in June.

Mola’s project is subject to HCDA approval. The agency has scheduled two public hearings on the plan.

The first hearing is slated for May 1 at 9 a.m. and will include a presentation by the developer. The agency will host a second public hearing June 5 at 9 a.m., after which a decision on the application is expected by the agency’s board. Both hearings will be held at HCDA offices at 461 Cooke St.

The property borders Kawai­ahao Street and the Ewa end of Wai­manu Street between the Imperial Plaza tower and a self-storage facility.

A company named Action Development LLC, managed by Francine Summers and Byron Ho, is listed as the property’s owner. That firm bought the parcels in 2007 for $3.9 million, according to property records.

Mola could not be reached for comment Tuesday, when HCDA announced the public hearing schedule.

The developer is proposing a mix of units from studios with 372 square feet of living space to two-bedroom units with a little more than 600 square feet, according to application details. Unit prices were not specified.

Mola, through companies including Coastal Rim Properties Inc., has been involved in development mainly in California and Hawaii, including the 176-unit affordable senior apartment building Kulana Hale in Hono­lulu.

Coastal Rim’s website says Mola has overseen planning and construction of more than 4,300 homes.

The developer previously had an option to buy the 801 South St. site, but that purchase fell through, and local affordable-housing developer Marshall Hung acquired the property and launched plans for two workforce housing towers.

Article courtesy of the Honolulu Star Advertiser, written By Andrew Gomes and POSTED: 01:30 a.m. HST, Apr 03, 2013

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