Hawaii agencies could join to develop ‘Kakaako Makai Innovation Block’

The area where a new economic accelerator is being planed in Kakaako Makai near the UH

The area where a new economic accelerator is being planed in Kakaako Makai near the UH

Two state agencies — one promoting Hawaii’s economic diversification through venture capital investment partnerships and the other that oversees development in Kakaako — are looking to join forces to develop an economic accelerator in the growing Honolulu neighborhood, a spokeswoman for one of the agencies confirmed to PBN.

The “Kakaako Makai Innovation Block,” a partnership between the High Technology Development Corp. and the Hawaii Community Development Authority, is planned for a 5.5-acre lot with an allowable floor area of 360,000 square feet near the University of Hawaii John A. Burns School of Medicine campus on what is now being used as a parking lot.

The block would offer synergy and connection with the medical school and the University of Hawaii Cancer Center, according to an information briefing on the project to the HCDA this week.

The project would be done in three phases. The first phase would be an “Entrepreneur’s Sandbox,” a collaboration space for technology and enterprise, and an “Innovation Hale,” which would house technology and enterprise resources.

The hale would include a stand-alone commercial office and retail mall and DataHouse Consulting, one of the biggest information technology firms in Hawaii, as well as Fisher Hawaii, one of the largest home and office product supply warehouse and retail stores in the state.

Other potential tenants could come from health care, technology, education and data services.

The second phase would consist of the “Kewalo Incubation Center,” a place for the High Technology Development Corp. facilities and a regional parking facility that would increase parking in the area from 400 stalls at grade to 600 to 900 stalls in a parking structure.

The center would cater to start-ups, with space rents backloaded and customized for flexibility.

The third phase includes a learning center with up to 150,000 square feet of facilities and the “Keawe Courtyard,” an outdoor gathering place.

The HCDA is expected to hear more about the project at a future meeting.

“[The collaborations] are aimed at improving business and economic development in Hawaii, especially in Kakaako,” Lindsey Doi, spokeswoman for the HCDA, told PBN in an email.

Duane Shimogawa
Pacific Business News

High-rise in Kakaako completed, owners set to move-in June

801 South StreetSome landscaping is still being installed, but construction is finished on a Kaka­ako high-rise that represents the latest in a wave of condominium towers coming to the area.

New homeowners in the 635-unit tower called 801 South St. Building A are slated to move in starting June 1, joining a growing population of residents in the urban Hono­lulu neighborhood undergoing major change.

Marcus and Sara Hayden, University of Hawaii employees who married in August, signed papers to complete their purchase in 801 South A on Saturday, making them first-time homeowners. On Monday they inspected their soon-to-be home on the third floor of the 47-story tower at the corner of South and Kawai­ahao streets.

“We’re excited,” said Marcus Hayden, 37, as he checked out the two-bedroom, 800-square-foot unit with his wife and parents. “Nervous and excited.”

The Haydens, who are moving from a downtown Hono­lulu high-rise rental apartment, will soon be joined by many others calling Kaka­ako home.

Five more condo towers are under construction nearby, including a neighboring sister tower called 801 South Building B. And several more are gearing up to break ground or obtain development permits in what is shaping up to be the biggest wave of new high-rise development in Kaka­ako, where there have been two previous major tower development booms.

Since the Great Recession ended six years ago, only one other condo tower in Kaka­ako was started and completed. That was Wai­ho­nua at Kewalo on Wai­manu Street, which is between the older Ko‘o­lani and Hawa­iki towers and was completed in November. Hale­kau­wila Place, a rental building for low-income residents developed with state assistance, also was completed last year.

At 801 South, local affordable-housing developer Marshall Hung of Downtown Capital LLC used a “workforce housing” rule of the Hawaii Community Development Authority, a state agency regulating development in Kaka­ako, to build the two towers with extra density in return for making at least 75 percent of units affordable to residents with moderate to high-moderate incomes.

Prices for studios to two-bedroom units in the first tower range from about $250,000 to $500,000.

Both 801 South towers were limited to Kaka­ako’s maximum 400-foot height. Some of the extra density was used to create two 11-story stand-alone parking garages on the site.

Ryan Harada, a principal with Downtown Capital, said an effort was made to soften the look of the garage by adding frosted glass windows on three corners of the structure and metal grills covering other openings.

“I think it looks nice, for an 11-story parking garage,” he said.

Hayden said the garage will keep his home cool with shade. “I don’t mind the parking structure being there,” he said. “I’m happy.”

Hayden also found out that the unit, which he bought for $414,000 with two parking stalls, was appraised by his lender at $480,000. Hayden and his wife expect to sell the unit in about 18 months or so to move into a larger unit in 801 South B that Sara Hayden contracted to buy before getting married. The neighboring tower is slated to be finished late next year.

By Andrew Gomes

http://www.staradvertiser.com/businesspremium/20150414_A_highrise_in_Kakaako_has_been_newly_completed_with_owners_set_for_a_June_movein.html?id=299657491

Hawaii agency chief says 35% of Kakaako’s housing units ‘affordable’

The 801 South St. project in Kakaako is one of the workforce housing projects being developed in the area. The head of the Hawaii Community Development Authority says 35 percent of the housing being developed in the area are "affordable."

The 801 South St. project in Kakaako is one of the workforce housing projects being developed in the area. The head of the Hawaii Community Development Authority says 35 percent of the housing being developed in the area are “affordable.”

A little more than one-third of the more than 4,200 units being developed in the growing Honolulu neighborhood of Kakaako are not being built for the ultra-rich, the head of the Hawaii agency overseeing the redevelopment of the area said Wednesday.

With scores of high-end condominiums being built in Kakaako, much of the talk has centered around local residents being aced out of area because of not being able to afford such sky-high prices.

Anthony Ching, executive director of the Hawaii Community Development Authority, said at the agency’s monthly meeting amongst a brand new board of directors and new office and meeting spaces at the American Brewery Building in Honolulu, said that 35 percent of all housing units in Kakaako will be for qualified income households.

This means that there is a chunk of units in Kakaako that will be reserved for those in two categories, reserved housing and workforce housing.

Reserved housing is for low or moderate income groups. The majority of “affordable housing” in Kakaako falls under this program.

These developments are available to households making anywhere from 30 percent to 140 percent of area median income, which translates to a person with an annual income between $20,150 and $80,950.

Workforce housing, unlike reserved housing, is not a requirement for residential developers under HCDA rules.

To be called a workforce housing project, the requirements are having at least 75 percent of residential units set aside for those earning between 100 percent and 140 percent area median income, which translates to an annual income for one person between $57,800 and $80,950.

Ching recently told PBN that while the condos being built in Kakaako are all high-value properties, each one has different price points and there is strong local purchase.

“Local investors, as well as occupiers, are part of the significant growth of Kakaako,” he said. “We’re focusing on trying to produce rental units — Halekauwila Place is a good example. It was built with tax credits. The tax credit program is responsible for 90 percent of all low-income housing.”

Duane Shimogawa Reporter – 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

Honolulu’s Auahi Street to unite Kamehameha Schools, Howard Hughes projects

Auahi Street, looking toward Downtown Honolulu from Ward Avenue will be opened up when the Hawaii Community Development Authority moves the city's coning unit branch to another spot in Kakaako.

Auahi Street, looking toward Downtown Honolulu from Ward Avenue will be opened up when the Hawaii Community Development Authority moves the city’s coning unit branch to another spot in Kakaako.

Auahi Street, an important route through the growing Honolulu neighborhood of Kakaako that currently separates The Howard Hughes Corp.’s 60-acre Ward Village master-planned community from Kamehameha Schools’ properties, is getting connected.

Anthony Ching, executive director of the Hawaii Community Development Authority, the state agency regulating the redevelopment of Kakaako, said this week at its regularly scheduled meeting that the plan to open up Auahi Street should gain some traction during the first quarter of this year.

Currently, Auahi Street, which starts and ends on Queen and South streets, is cut off almost in the middle from Kamani to Koula streets by the City and County of Honolulu’s Department of Facility Management’s sidewalk-nuisance ordinance and stored property ordinance program and coning unit branch.

The connection of Auahi Street from Kamani and Koula streets would prove useful to both Kamehameha Schools and The Howard Hughes Corp. (NYSE: HHC) — and would connect the two developers’ mixed-use communities, providing pedestrian, bicycle and vehicular circulation.

But the HCDA has proposed moving the city’s coning unit branch to the state agency’s former Look Lab Facility in Kakaako Makai, which consists of an 18,000-square-foot warehouse and 29,560-square-foot open yard space.

Ching said that this property, which was previously leased by the University of Hawaii until 2003 and has since been vacant except for short-term tenants, would be a perfect fit for the branch because it would provide the city with a needed facility and enforcement of the sidewalk-nuisance ordinance program in the Kakaako Makai area.

“The proximity of the branch will impact the homeless population in the area,” he said, noting that opening up Auahi Street would be a full-service effort, painting lines to show bike and pedestrian lanes.

Duane Shimogawa Reporter – Pacific Business News

Hawaii agency moves up hearings for Howard Hughes, MacNaughton-Kobayashi condo towers

The planned Vida at 888 Ala Moana luxury condominium tower being developed by the Kobayashi Group and The MacNaughton Group received neighborhood board approval Tuesday night.

The planned Vida at 888 Ala Moana luxury condominium tower being developed by the Kobayashi Group and The MacNaughton Group received neighborhood board approval Tuesday night.

The Hawaii Community Development Authority has rescheduled the decision-making public hearings for The Howard Hughes Corp.’s plan to replace Ward Warehouse and the Kobayashi Group and The MacNaughton Group’s Vida luxury condominium high-rise on a 3.5-acre site in the Honolulu neighborhood of Kakaako.

The state agency, which oversees the redevelopment of the fast-growing Honolulu neighborhood of Kakaako, originally scheduled the Howard Hughes hearing for Dec. 3, but has moved it to Nov. 25, the day before Thanksgiving. The presentation hearing for the Kobayashi-MacNaughton project, which is scheduled for Nov. 12 at 9:30 a.m. has not changed, but the new date for the decision-making hearing has also been moved to Nov. 25 at noon, from Dec. 17.

Both hearings will be held at 461 Cooke St. in the Makai Conference Room.

The HCDA already held two public hearings on The Howard Hughes Corp. (NYSE: HHC) project, which includes a total of 236 units in two towers, as well as commercial and recreation space on the site of the current Ward Warehouse.

The Howard Hughes Corp. is asking the HCDA for four modifications, including to increase the maximum platform height to 65 feet with an allowance of an additional 15 feet in height for 15 percent of the roof area that will be used for accessory uses.

MK Development, a joint venture of the Kobayashi Group and The MacNaughton Group, purchased six acres from Kamehameha Schools for an undisclosed price to develop two ultra-luxury mixed-use residential projects totaling about 500 units along the mauka side of Ala Moana Boulevard.

The 38-story Vida tower at 888 Ala Moana Blvd. will include 265 two- and three-bedroom units and will be designed by Los Angeles-based Arquitectonica and Honolulu-based Ben Woo Architects, which will be helping the project seek LEED certification with an energy-efficient design and features.

Amenities for the project include guest suites, movie theaters, dining rooms with a chef’s kitchen, children’s play areas, game rooms and a putting green.

Heyer & Associates LLC will be handling sales of the project.

The Kobayashi Group and The MacNaughton Group also developed the Hokua and Capitol Place mixed-use projects in Honolulu, and are also working on a project that includes seven ultra-luxury condominium towers planned for what is now a parking area of Ala Moana Center fronting Ala Moana Boulevard called Park Lane Ala Moana, with a development cost of about $300 million, according to public records.

Duane Shimogawa Reporter – Pacific Business News

First
Last

Hawaii agency moves ahead with affordable housing project in Kakaako

This vacant lot at 630 Cooke St. in the Honolulu neighborhood of Kakaako could be developed into affordable housing.

This vacant lot at 630 Cooke St. in the Honolulu neighborhood of Kakaako could be developed into affordable housing.

The Hawaii Community Development Authority, the state agency overseeing the redevelopment of the growing Honolulu neighborhood of Kakaako, has given its executive director unanimous approved to send out a request for proposals to developers wanting to build an affordable housing project on land owned by the agency.

Lindsey Doi, spokeswoman for the HCDA, confirmed to PBN that the decision was made at HCDA’s regularly scheduled meeting on Wednesday. She said that HCDA could begin soliciting bids and choose a developer by Feb. 2015.

The vacant industrial parcel at 630 Cooke St., which consists of about 10,400 square feet and is located between Sunshine Scuba and Baby Emporium, is currently being used as a surface parking lot.

“We acquired the parcel of land in the 1990s through the Cooke Street realignment improvement district project,” Doi previously told PBN via email. “We always hoped it could help supplement Kakaako’s housing supply, and we’re looking for a different type of housing unit that might be a better fit for qualified income groups.”

She noted that microunits are an option, since these types of units might create smaller rental units for lower prices.

The property has an estimated value of about $1.9 million, and is owned by the HCDA, according to tax records. No building permit has been filed for the property since 1991.

Duane Shimogawa Reporter – Pacific Business News

Another housing project for Honolulu’s Kakaako neighborhood may be in the works

The Hawaii Community Development Authority may be looking for a developer to build an affordable housing project on land it owns in the growing Honolulu neighborhood of Kakaako.

The Hawaii Community Development Authority, which is overseeing the redevelopment of the area between Downtown Honolulu and Waikiki that will gain thousands of new residents living in several new high-rises in the coming years, may issue a request for proposals for such a development at 630 Cooke St.

The vacant industrial parcel, which consists of about 10,400 square feet and is located between Sunshine Scuba and Baby Emporium, is currently being used as a surface parking lot.

“We acquired the parcel of land in the 1990s through the Cooke Street realignment improvement district project,” HCDA spokeswoman Lindsey Doi told PBN via email. “We always hoped it could help supplement Kakaako’s housing supply, and we’re looking for a different type of housing unit that might be a better fit for qualified income groups.”

She noted that microunits are an option, since these types of units might create smaller rental units for lower prices.

“If the RFP is approved, we could solicit bids and choose a developer by February 2015,” Doi said.

The property has an estimated value of about $1.9 million, and is owned by the HCDA, according to tax records. No building permit has been filed for the property since 1991.

The HCDA is scheduled to make a decision whether or not to issue an RFP to develop the property at its regularly scheduled meeting on Wednesday, starting at 10 a.m. at 461 Cooke St.

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

The Howard Hughes Corp. finalizing plans on Honolulu workforce housing tower

The Howard Hughes Corp. plans to redevelop the block at 404 Ward Ave. in Kakaako, including the two-story building shown here, into a 415-unit residential tower with commercial space and parking, the first project in its Ward Village master plan.

The Howard Hughes Corp. plans to redevelop the block at 404 Ward Ave. in Kakaako, including the two-story building shown here, into a 415-unit residential tower with commercial space and parking, the first project in its Ward Village master plan.

The Howard Hughes Corp. is finalizing plans for its 424-unit workforce housing residential tower planned for 404 Ward Ave. in Kakaako as part of its first phase of its Ward Village master plan, the Texas-based developer said this week in its second quarter earnings report.

As of June 30, The Howard Hughes Corp. has spent $3.8 million on development 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 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, Anaha and Waiea, as well as 404 Ward tower’s 49 market rate units.

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

The Howard Hughes Corp. is expected to start construction on Anaha, the 311-unit luxury condo planned for the site of the old Pier 1 Imports store, later this year with a completion date scheduled for early 2017. As of June 30, it had spent $16.8 million on development costs for the project.

Waiea, which will have 171 luxury units, began construction in June on what was a surface parking lot next door to Ward Warehouse, is expected to be completed at the end of 2016. Thus far, The Howard Hughes Corp. has spent nearly $20 million on development costs for the Waiea project.

As of Aug. 1, about 65 percent of the 482 total units in the two towers — 71 percent in Waiea and 61 percent in Anaha — in these two towers have been contracted and passed their 30-day rescission period for which buyers have made non-refundable deposits.

This week, PBN first reported that The Howard Hughes Corp. will present to the Hawaii Community Development Authority in October its plan to build a 236-unit residential high-rise project that will include two towers at the 115,000-square-foot Ward Warehouse site as part of its second phase of its Ward Village master plan.

The developer also has plans to build another condo tower at the corner site of the existing Old Spaghetti Factory.

Duane Shimogawa Reporter – Pacific Business News

Company Disclaimer: Information is deemed reliable but not guaranteed.