Penthouse at Howard Hughes’ Honolulu condo project priced at $20M

Jan 31, 2014, 2:00pm HST
Duane Shimogawa Reporter – Pacific Business News

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., which has plans to build two ultra-luxury, mixed-use condominium towers as part of its Ward Village master plan in Kakaako, on Friday published owner-occupant pre-sales notices for the two projects, including a penthouse with an asking price of $20 million, a record for the highest asking price ever for a new condo unit in Hawaii.

Nick Vanderboom, senior vice president of development for The Howard Hughes Corp. (NYSE: HHC), said that sales for the two buildings, Waiea and Anaha, begin Saturday at 9 a.m.

The starting price of a studio unit in Anaha, located at 1108 Auahi St. on the site of the former Pier 1 Imports store, is in the high $400,000s to high $500,000s, while a one-bedroom unit ranges between $600,000 and mid $1 million.

A two-bedroom unit starts in the high $900,000s to more than $2 million, with three-bedroom units ranging from more than $1 million to more than $4 million, and penthouses priced at more than $1 million to $14 million.

A one-bedroom unit in Waiea, located at 1118 Ala Moana Blvd., across from the Ward Entertainment Center, starts at more than $1 million, with a two-bedroom unit going for between more than $1 million to more than $4 million, and three-bedrooms priced from more than $2 million to $7 million range.

Penthouses in Waiea range from $4 million to $20 million with villas ranging from more than $4 million to $5 million.

Long lines already started forming Friday at the historic IBM building, which has been renovated to include an information center and residential sales gallery for the developer’s Ward Village master plan.

“We are pleased to invite all interested members of the public to join us for a first look at these exceptional residences set among dynamic public open spaces and walkable streets in the heart of Honolulu,” Vanderboom told PBN in an email.

A week ago, The Howard Hughes Corp. unveiled its $24.4 million redeveopment of the iconic IBM Building.

The Howard Hughes Corp. plans to add more than 900 residential units in the first phase of its Ward master plan, which represents more than $1.25 billion in economic impact and thousands of direct and indirect jobs for Oahu, according to a study by ALH Urban & Regional Economics.

Ward Village vision in Kakaako going on display

Ward Village vision in Kakaako going on display

By Star-Advertiser staff

Nick Vanderboom, senior vice president of development for the Howard Hughes Corp, show a model of the company's plans to redevelop the 60 acres that is Ward Centers into a largely residential highrise community mixed with retail called Ward Village.

Nick Vanderboom, senior vice president of development for the Howard Hughes Corp, show a model of the company’s plans to redevelop the 60 acres that is Ward Centers into a largely residential highrise community mixed with retail called Ward Village.

Howard Hughes Corp., the developer of an envisioned 60-acre community in Kakaako called Ward Village with 22 condominium towers and retail, is showcasing that vision with a new sales and information center in the historic IBM Building.

The info center is slated to open by Friday, and includes an interactive scale model of Honolulu between Diamond Head and Sand Island, a small theater and historical exhibits created in conjunction with Bishop Museum that tell about the Ward property’s past back to pre-Western contact. A restaurant is also being built next to the info center, though an operator has yet to be selected.

Sales of condo units in the project’s first two towers began last month by appointment. Model units are built out on the IBM Building’s sixth floor.

Master Planned Community is the First LEED Neighborhood Development Platinum Certified Project in Hawai‘i

The Howard Hughes Corporation® Master Planned Community is the First LEED Neighborhood Development Platinum Certified Project in Hawai‘i

HONOLULU–(BUSINESS WIRE)–Nov. 27, 2013– The Howard Hughes Corporation® (NYSE: HHC) announced today that Ward Village has received LEED® Neighborhood Development (LEED-ND) Platinum certification, making the Honolulu project the nation’s largest LEED-ND Platinum certified project and the only LEED-ND Platinum certified project in the state of Hawai‘i. The LEED rating system, developed by the U.S. Green Building Council, is the foremost program for buildings, homes and communities that are designed, constructed, maintained and operated for improved environmental and human health performance.

Ward_Village_Aerial“We are extremely honored to receive LEED-ND Platinum certification, confirming that Ward Village will arguably be the most sustainable community in the country,” said Nick Vanderboom, Senior Vice President of Development for TheHoward Hughes Corporation. “We are committed to creating a one-of-a-kind, integrated neighborhood in the heart ofHonolulu based on thoughtful planning and design that will feature exceptional residences and unique retail offerings set among dynamic public open spaces and walkable streets.”

LEED-ND Platinum certification was awarded to Ward Village based on achievement of the very highest standards of sustainable neighborhood design, including community-wide strategies such as pedestrian orientation and design; efficient land use in a location served by transit; water and energy efficiency; recycling and reuse of materials; indoor environmental quality; and parking and transportation programs that include vehicle and bicycle sharing.

“Achieving the LEED-ND Pre-Certified Plan designation shows that Ward Village is committed to achieving a high level of sustainability from its early planning through its construction and ultimately operation as a thriving community,” said Rick Fedrizzi, President, CEO and Founding Chair, U.S. Green Building Council.

Over the next decade, The Howard Hughes Corporation will transform 60 acres in Honolulu into Ward Village, a vibrant master planned community encompassing 9.3 million total square feet. This mixed-use development will include approximately 4,000 residential units and over one million square feet of retail and other commercial space. The first phase of the project was approved this past summer with construction expected to begin in 2014.

About The Howard Hughes Corporation®

The Howard Hughes Corporation owns, manages and develops commercial, residential and mixed-use real estate throughout the U.S. Our properties include master planned communities, operating properties, development opportunities and other unique assets spanning 16 states from New York to Hawai‘i. The Howard Hughes Corporation is traded on the New York Stock Exchange as HHC and is headquartered in Dallas, TX. For additional information about HHC, visit www.howardhughes.com.

Safe Harbor Statement

Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “expect,” “enables,” “realize,” “plan,” “intend,” “transform” and other words of similar expression, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s expectations, estimates, assumptions, and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially are set forth as risk factors in The Howard Hughes Corporation’s filings with the Securities and Exchange Commission, including its Quarterly and Annual Reports. TheHoward Hughes Corporation cautions you not to place undue reliance on the forward-looking statements contained in this release. The Howard Hughes Corporation does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.

Source: The Howard Hughes Corporation

Bennet Group Strategic Communications
Rachel Ross

or
The Howard Hughes Corporation
Caryn Kboudi, 214-741-7744

An Intense Influx of Housing for a Honolulu District

The flat, low-slung neighborhood of Kakaako near downtown Honolulu was once an alluvial plain dotted with fish ponds that deteriorated into a gritty area with auto repair shops and warehouses.

During an era of urban revitalization in the 1970s, the state formed the Hawaii Community Development Authority to oversee neighborhood redevelopment in Kakaako, which lies between downtown Honolulu and Waikiki. Since then, Kakaako has evolved into a retail and entertainment district, with shopping centers and Honolulu’s largest multiplex cinema, as well as a neighborhood popular with residential real estate investors.

A rendering of the Kakaako neighborhood near downtown Honolulu, which is now a shopping and entertainment district.

A rendering of the Kakaako neighborhood near downtown Honolulu, which is now a shopping and entertainment district.

Kakaako’s largest landowner, the Howard Hughes Corporation, based in Texas, is poised to begin building three 400-foot residential condominium towers, the first phase of a development on 60 acres once owned by the family of Victoria Ward, a descendant of Hawaiian royalty.

Although an approved master plan for the development, called Ward Village, includes as many as 22 towers and more than a million square feet of retail and commercial space, to be built probably in the next 10 to 15 years, many of the projects in that plan would have to undergo later levels of review.

The Hughes corporation, which inherited the acreage and master plan when it emerged out of the bankrupt General Growth Properties in 2009, has already been modifying some of the plans to take into account community concerns. While the proposed overall building density did not change, the developers narrowed the towers to preserve more of the ocean views enjoyed by inland residents.

In recent years, some residents have complained that Kakaako’s 400-foot height limit for buildings is too high. While Howard Hughes continues to propose towers that are maximum height, developers are shifting the orientation of many to make them “mauka-makai” (Hawaiian for “toward the mountains-toward the sea”) to preserve some vistas for islanders living outside the new buildings.

Developers have agreed to survey the properties for native burial grounds, with guidance from the Oahu Island Burial Council.

While Duane Komine, the second vice chairman of the Ala Moana/Kakaako Neighborhood Board No. 11, said the developers had solicited input and provided regular updates to affected residents, some islanders have lingering concerns. Larry Hurst, a resident of the area for more than 20 years, said some continued to complain that ocean views will be blocked, even though the development has already been approved.

“Unfavorable public interest has always been minimal and doesn’t seem to be roused until a development is planned for next door,” Mr. Hurst said. “That’s when people come out from behind their curtains.”

Mr. Hurst, who is chairman of the Ala Moana/Kakaako neighborhood board but was not speaking for the board, said he was concerned that the master plan did not include housing for poor people, but for people making an average income or above. Twenty percent of the 4,000 units proposed by Howard Hughes must be “work force housing,” or affordable to people earning 100 to 140 percent of the area’s median income for a family of four, which is $86,300 in 2013.

While low-income residents might use public transportation, he said that he doubted the owners of luxury condos would, worsening issues with traffic congestion. “They’re not going to be straphangers,” he said. “They want to have their own cars. It’s like that now — people only have to go a couple of blocks, but they take their S.U.V.’s.”

Mr. Hurst said there had also been concerns in the community that a board of political appointees had made the decisions on a massive development that will transform the neighborhood.

“There exists a general feeling of mistrust that special deals are being made with land developers to benefit a select few as permits are influenced by an appointed commission, not by duly elected representatives,” he said.

The schedule for Ward Village’s build-out will be driven by market demand, said Nick Vanderboom, a senior vice president for development at Howard Hughes.

“We have a historically low level of new building permits for residential units in the last few years, and a shortage of supply of housing on Oahu,” he said. “We believe it will take 10 to 15 years, potentially longer, to redevelop the entire community.”

Presales in Ward Village’s three towers will begin in December or early next year, Mr. Vanderboom said.

A 38-story tower with townhomes called Waiea, which means “water of life,” will have 171 residences with one, two or three bedrooms. A 36-story tower with townhomes, called Anaha, will have 311 smaller apartments ranging from studios to three-bedroom apartments.

A 44-story unnamed tower, on Halekauwila Street, will have 424 residences, with 375 priced as work force housing. Unit pricing has not yet been determined, and construction should be complete by 2016, he said.

Besides the three towers, Howard Hughes is also renovating a 1960s modernist-style office building that once housed IBM into a Ward Village information center and residential sales gallery, to be completed in early 2014. Since 2010, more than 120,000 square feet of new retail space and a 720-space parking garage have also been added in Kakaako, Mr. Vanderboom said.

The complete redevelopment of Kakaako would come close to tripling the population to at least 30,000 residents by 2030 from about 12,000 now, said Anthony J.H. Ching, the executive director of the Hawaii Community Development Authority.

Other big projects are also underway in Kakaako. Late last year, the state chose Forest City Hawaii, a subsidiary of Forest City Enterprises, to develop what may be the state’s tallest building, at 560 feet, as part of a $500 million transit-oriented complex on Pohukaina Street with a mix of affordable and market-rate residential units.

Another large landowner, Kamehameha Schools, has a 15-year plan to build as many as seven towers, up to 400 feet high, surrounded by low-rise units on its 29 acres.

Several other tower projects are underway, such as Symphony, a residential condo tower with about 388 units, and Waihonua at Kewalo, a residential tower with about 400 units.

Under the approved master plan for Ward Village, Howard Hughes can build a total of about 9.3 million square feet on its acreage, which besides the commercial space could amount to 4,000 residential units, Mr. Vanderboom said.

In early November, Ward Village received the platinum level certification for eco-friendliness in neighborhood development from the United States Green Building Council.

The location of Ward Village’s proposed development alone earned many points toward obtaining the platinum certification, said Aaron Welch, a senior planner and associate with Raimi and Associates, who consulted on the village plan.

“For this project, the location — which was infill, served by transit, near existing amenities like schools, shops, parks — was one of the most important things in helping it score well,” Mr. Welch said.

Beyond that, the plans include tree-lined and shaded streets, water-efficient landscaping, recycled content in the infrastructure, lights that minimize light pollution and reflective and vegetative roofs to minimize heat absorption, Mr. Welch said.

Along with bicycle- and car-sharing programs, Ward Village plans to make use of bus service and a new light rail line under construction, to reduce reliance on automobiles, Mr. Vanderboom said.

“My wife and I live here, and we only own one car,” he said. “I’m fortunate to walk to work every day.”

http://www.nytimes.com/2013/11/27/realestate/commercial/an-intense-influx-of-housing-for-a-honolulu-district.html

Howard Hughes Corp. Hawaii project gets LEED-ND Platinum rating

Nov 27, 2013, 12:45pm HST
Duane Shimogawa Reporter | Pacific Business News

The Howard Hughes Corp.’s plan to turn 60 acres in the Honolulu neighborhood of Kakaako into Ward Village, a 4,000-unit mixed-use community encompassing more than 1 million square feet of retail and other commercial space is now one of the nation’s largest green-building projects, the Texas-based developer said Wednesday.

This rendering shows the Howard Hughes Corp.'s Ward Village community.

This rendering shows the Howard Hughes Corp.’s Ward Village community.

Ward Village has received LEED Neighborhood Development Platinum certification, making it the only project to garner this honor in Hawaii.

The Leadership in Energy & Environmental Design rating system, developed by the U.S. Green Building Council, is a program for buildings, homes and communities that are designed, constructed, maintained and operated for improved environmental and human health performance.

“We are extremely honored to receive LEED-ND Platinum certification, confirming that Ward Village will arguably be the most sustainable community in the country,” Nick Vanderboom, senior vice president of development for Howard Hughes Corp. (NYSE: HHC) said in a statement. “We are committed to creating a one-of-a-kind, integrated neighborhood in the heart of Honolulu based on thoughtful planning and design that will feature exceptional residences and unique retail offerings set among dynamic public open spaces and walkable streets.”

The certification was awarded to Ward Village based on achievement of the very highest standards of sustainable neighborhood design, such as pedestrian orientation and design; efficient land use in a location served by transit, water and energy efficiency, recycling and reuse of materials, indoor environmental quality, as well as parking and transportation programs that include vehicle and bicycle sharing, the developer said.

The first phase of the Ward Village project was approved this past summer with construction expected to begin in 2014.

Pier 1, Nordstrom Rack to open new Honolulu stores in November

Oct 22, 2013, 7:13am HST

Staff Pacific Business News

The Howard Hughes Corp. said it has finished building a new two-story building at the Ward Village Shops in Honolulu’s Kakaako neighborhood, in time for Nordstrom Rack and Pier 1 Imports to open next month.

The Honolulu Star-Advertiser reports Pier 1, which closed its old store down the street on Oct. 8, will open its new 9,800-square-foot store on Nov. 1, while Nordstrom Rack will close its existing store behind the Ward Entertainment Center on Nov. 9 and reopen in the new 45,000-square-foot space on Nov. 14.

The two stores, which will be located adjacent to the anchor T.J. Maxx store at Ward, are part of Dallas-based Howard Hughes Corp.’s (NYSE: HHC) Ward Master Plan. A condo tower is planned for the former Pier 1 site at the corner of Auahi and Kamakee streets.

Seattle-based Nordstrom Inc. (NYSE: JWN) opened the off-price Nordstrom Rack store in 2000 and opened its first full-line department store in Hawaii at Ala Moana Center in 2008.

Pier 1 Imports (NYSE: PIR) has two other stores on Oahu, in Kailua and Pearl City, and one store on Maui and one on the Big Island.

CEO says Howard Hughes Corp. still working on best mix for Honolulu development

Oct 2, 2013, 2:52pm HST Updated: Oct 2, 2013, 4:22pm HST
Duane Shimogawa  |  Reporter- Pacific Business News

The Howard Hughes Corp. plans to build a 400-foot market-priced condominium tower with about 325 units and commercial space on this corner of Auahi and Kamakee streets in Kakaako. Pier 1 Imports is getting ready to move to a new space in the Ward Village Shops along Auahi Street.

The Howard Hughes Corp. plans to build a 400-foot market-priced condominium tower with about 325 units and commercial space on this corner of Auahi and Kamakee streets in Kakaako. Pier 1 Imports is getting ready to move to a new space in the Ward Village Shops along Auahi Street.

The head of The Howard Hughes Corp., one of the bigger private developers of Honolulu’s Kakaako neighborhood, said Wednesday that the company is determining what the best and right mix is for its second phase of its $7.5 billion Ward Village master plan.

“Some will be dependent on retail tenants,” said David Weinreb, CEO of the Dallas-based developer. “There will be a feeling of a community and of a village.”

Weinreb, who was in Waikiki for Hawaii Business Magazine’s event honoring the top 250 businesses in Hawaii. presented by First Hawaiian Bank, spoke to a small group of Honolulu media members after the event and made it known that although there are a number of areas to develop in Hawaii, his firm is solely focused on Kakaako and committed to Honolulu.

“[We plan on] building a base here to go beyond us,” he said.

Weinreb, who comes to Hawaii every three to four weeks, even intends on purchasing one of the more than 4,000 units planned in its Ward Village master plan.

In August, the Howard Hughes Corp. (NYSE: HHC) got the green light from the Hawaii Community Development Authority, the state agency charged with overseeing the redevelopment of Kakaako, for two of its mixed-use condominium towers at Ward Village, the first phase of its master plan for the area.

This first phase includes 900 residential units as well as a mostly affordable residential tower at 404 Ward Ave., which also received HCDA approval.

Sales for the first phase of the Ward Village residential projects will be starting soon.

Howard Hughes Corp expects pre-sales to start soon for Honolulu condos

Nov 7, 2013, 2:50pm HST
Duane Shimogawa |  Reporter- Pacific Business News

AuhaiCaptureThe Howard Hughes Corp. said Thursday that it expects to begin pre-sales of its first three residential condominium towers in Honolulu’s Kakaako neighborhood by the end of this year, or early next year, as it awaits Real Estate Commission’s approval of its condo documents.

The Texas-based developer noted in its third-quarter earnings report that it anticipates receiving the Real Estate Commission’s approval by the end of this year.

Development permit applications and detailed plans for the first phase of its Ward Village master plan, which includes the first three residential towers, were approved by the Hawaii Community Development Authority in the third quarter

Thus far, The Howard Hughes Corp. (NYSE: HHC) said it has incurred pre-development costs of about $11.9 million as of September, for the first phase of the master plan, which includes 4,000 residential units and up to 1.7 million square feet of retail, office, commercial and other uses with full build-out expected to take more than 15 years.

The first phase incudes the renovation of the IBM Building and the development of about 482 condo units in two mixed-use towers to be completed in 2016, and another residential tower with workforce units having sales prices lower than market rate.

The redevelopment of the IBM Building into an information center and residential sales gallery for the entire project, which began in the first quarter, is on schedule for completion by the end of this year with an anticipated cost of $24.4 million, The Howard Hughes Corp. said.

As of September, the developer said that it spent about $13.4 million on that project.

NEW two-story building for Nordstrom Rack & Pier 1 Imports at Ward Village Shops.

NEW two-story building for Nordstrom Rack & Pier 1 Imports at Ward Village Shops. by Kristen Consillio Star Advertiser

The owner of Ward Centers has completed construction of a new two-story building for Nordstrom Rack and Pier 1 Imports at Ward Village Shops.

Pier 1 will reopen on Nov. 1 and Nordstrom Rack on Nov. 14 in a 58,000-square-foot complex between T.J. Maxx and the old Pier 1 location on the corner of Auahi and Kamakee streets, which closed Oct. 8. Nordstrom Rack will close its existing store Nov. 9.

“With the completion of the Ward Village Shops, we move another step forward in bringing our vision for Ward Village to life,” Nick Vanderboom, senior vice president of development for Howard Hughes Corp., said in a statement. “The grand openings of Pier 1 and Nordstrom Rack in their new locations represent another milestone in the transformation of Ward Village into a true mixed-use community in the heart of Honolulu.”

A more-than-9,800-square-foot Pier 1 and nearly 45,000-square-foot Nordstrom Rack are connected to the existing 700-stall, seven-level parking structure next to T.J. Maxx.

The move will give Nordstrom Rack, the off-price retail division of Nordstrom, a larger footprint in Kakaako, expanding the store by 50 percent. Pier 1’s space is reduced by about 3,000 square feet.

The expansion will add about 10 percent more space to Ward Centers’ 550,000 square feet, home to more than 135 shops and restaurants plus a 16-screen movie theater.

Howard Hughes Corp., owner of Ward Centers, plans to build 22 high-rise towers and double the retail space at Ward Centers.

The developer wouldn’t disclose the cost of the project. However, the company announced in 2011 it had received a $250 million loan to refinance three mortgages and provide $38 million to begin redevelopment at Ward Centers.

Howard Hughes plans to incorporate the spaces left vacant by the two large retailers into its redevelopment plan, including a condominium tower on the former Pier 1 site. Howard Hughes hasn’t disclosed tenants that will move in beneath T.J. Maxx.

Ward Centers includes Ward Centre, Ward Warehouse, Ward Entertainment Complex and Ward Gateway Center spread over 60 acres on four blocks.

Company Disclaimer: Information is deemed reliable but not guaranteed.