Outrigger Reef on the Beach Plans Another 350-Foot Tower

Outrigger Enterprises Group has announced that they would like to build another 350-foot tower at their Outrigger Reef on the Beach hotel complex.  This tower would strictly be used as a hotel and will not be sold to individual owners as a condominium-hotel.  Tentative plans call for a 31 or 32 story tower with a total of 200 rooms plus an additional 15,000 sq ft of meeting space and a 7,200 sq ft ballroom.  President and CEO for Outrigger, David Carey, stated, "We already have housekeeping, front desk and the balance of resort services, so it's not that hard to expand hotel rooms. This is the only locally owned of the seven Wai­kiki beachfront hotels and one of the few fee-simple, on-the-beach properties. We want to keep it that way." 

There is some concern that this new Outrigger tower would block some of the ocean views that are currently being enjoyed by the Trump Tower and will be enjoyed by the Ritz-Carlton Towers (to be built).

Source: Honolulu Star Advertiser, 4-30-2014, www.staradvertiser.com
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Tourism Arrivals and Spending Decreases for March 2014

According to the Hawaii Tourism Authority, there were 5.2 percent fewer tourists who arrived in the Hawaiian Islands in March 2014 as compared to the same month a year prior. These 728,814 visitors spent a total of $1.2 billion, which was a decrease of 3.5 percent.  President and CEO for the Hawaii Tourism Authority, Mike McCartney, stated, "Following two record-breaking years in visitor spending and arrivals, we anticipated a slowdown in growth this year. While the outlook for the summer remains strong, we expect the fall shoulder period to be challenging, with increased competition, a strengthening U.S. dollar and increased taxes."

McCartney stated that the HTA will continue "to focus on enhancing our global marketing efforts to grow our market share from international regions, as arrivals from these areas continue to increase and help to balance the declines from mature markets like the U.S. West and U.S. East."  The Hawaii Tourism Authority has high hopes that China will become a major market for Hawaii over the next few years.  McCartney added, "There is significant growth in visitor spending from this market as Chinese visitors continue to be the highest daily spenders at $411 per person per day, as of March. We also recently signed a memorandum of understanding with the China Shanghai Film Group to film the first Chinese major motion picture in the Hawaiian Islands. This will provide our state with tremendous exposure in China and help us to reach a vast population."

Source: Honolulu Star Advertiser, 4-29-2014, www.staradvertiser.com
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State Increases Share of Transient Accommodation Tax Revenue for Various Counties

The state Legislature has agreed to increase the amount of revenue that each of the counties will get from the state's transient accommodation tax.  Previously, the four counties (Honolulu, Maui, Hawaii/Big Island, and Kauai) received a total of $93 million a year.  However, under the new agreement, the state will give a total of $103 million.  This comes out to an additional $4.4 million for Honolulu County, $2.3 million for Maui County, $2 million for Hawaii County, and $1.5 million for Kauai County.

While the four mayors agree that the additional funds will help a little, the $10 million increase was significantly less than what they had hoped for.  City Council officials may now need to make some tough choices as to which programs to cut for the following budget year.

Source: Honolulu Star Advertiser, 4-29-2014, www.staradvertiser.com
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801 South Street Update - Building B

Downtown Capital LLC, the developer for 801 South Street, has announced that 85 percent of the units (347 out of 410 units) in Building B have already been purchased by local residents who meet the moderate income qualifications.  Units in Building B (the second tower) are priced between $352,000 for a one-bedroom to $699,000 for a three-bedroom unit.  Moderate income buyers are defined as households who earn no more than 140 percent of Honolulu's median annual income.  This equates to $84,574 for a single person, $96,656 for a couple or $120,820 for a family of four. Downtown Capital has agreed to sell at least 75 percent of the units in Building B to buyers who fall into this category.

Source: Honolulu Star Advertiser, 4-29-2014, www.staradvertiser.com
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Repeat Visitors Equate to 65.1 Percent of Hawaii's Tourists

According to Hawaii Tourism Authority, approximately 65.1 percent of the tourist that arrived in Hawaii in 2013 were repeat visitors.  The importance of these repeat customers is not lost on the tourism industry. David Means, the Director of Rooms for the Hilton Hawaiian Village, commented, "Repeat visitors are No. 1. Not only do they repeat, but they use word of mouth to tell other friends about Hawaii. Throughout the year I'll meet guests that are friends of so-and-so's and were told to look me up. It's a huge market for us."

Industry executives are worried, however, that there are several factors that may reduce this repeat market, including the number of homeless in Waikiki, rising hotel room rates and the higher cost of airfare.  Jerry Gibson, the Area Vice President for Hilton Hawaii, commented, "The homeless challenge has created an entirely new dynamic on the industry. Compared to previous years, businesses in Wai­kiki have now learned to deal with the tremendous amount of social ills that come with this sad situation. In the past we did not have to be overly concerned with negative interaction on streets, beaches and public areas. Now hotels and businesses have to be ever vigilant to protect guests' interests."

Source: Honolulu Star Advertiser, 4-28-2014, www.staradvertiser.com
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Anti-Smoking Bill for Public Housing Advances

State Senator Josh Green, the chairman of the Senate Health Committee, introduced Senate Bill 651 which would prohibit smoking within 20 feet of all state and federal public housing buildings, entrances, exists, windows, and ventilation systems.  This anti-smoking legislation would also apply to all common areas such as roofs, halls, sidewalks, lobbies, stairways basements, gardens, and parking areas.  Green stated, "In general I think the state should take a very firm stance against smoking in any public setting, including public housing, because it affects the health of the smokers, and secondhand smoke affects other individuals around them, including children. It's a very clear public health priority for me to diminish smoking statewide, and this (bill) is, as far as I'm concerned, a reasonable piece of that policy."

If a occupant of public-housing violates the anti-smoking policy four times, they could have their lease terminated. Smoking would be defined as "inhaling, exhaling, burning or carrying any lighted or heated tobacco product or plant product intended for inhalation in any manner or in any form." The Bill is now going before both chambers for final approval.  If it makes it through the state legislature, it would be sent to Governor Neil Abercrombie for his signature and approval.

Source: Honolulu Star Advertiser, 4-28-2014, www.staradvertiser.com
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Condominium Sales in Rycroft Terrace, the Pagoda Hotel-Annex, Begins

Developer Peter Savio has announced that sales have begun for the Rycroft Terrace, the converted low-rise annex of the Pagoda Hotel.  There are a total of 162 units for sale, ranging in size from studio units with 300 sq ft of space to two-bedroom units with 737 sq ft of space. Prices range from $123,480 to $274,950. Monthly maintenance fees will range from $231 to $559 per month.

In order to qualify to buy in the Rycroft Terrace, buyers must make no more than 140 percent of Honolulu's median income, which equates to $93,000 fro a single person or $134,000 for a family of four.  However, Savio added that he will give preference to families who make less than that.  Some who qualify will make as little as 30 percent of median income, or $20,150 for a single person or $28,750 for a family of four.  Savio stated that the will qualify buyers with as little as 5 percent down and provide up to a $2,000 closing credit for those buyers who make less than 100 percent of the median income.

Buyers will be able to take possession of their units in June or July of this year.

Source: Honolulu Star Advertiser, 4-26-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Hawaii Minimum Wage May Increase to $10.10 per Hour By January 2018

Members of the state of Hawaii's House and Senate are hoping to come to an agreement to increase Hawaii's minimum wage to $10.10 per hour by January 2018.  This matches President Barack Obama's suggested increase to the federal minimum wage. According to the state Department of Labor and Industrial Relations, approximately, 2.2 percent of the state's labor force earned the minimum wage or less in 2012.

Source: Honolulu Star Advertiser, 4-26-2014, www.staradvertiser.com
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CEO for Hawaiian Airline Has High Hopes for China Market

Mark Dunkerley, the President and CEO for Hawaiian Airlines has high expectation for the Chinese market, but notes that the state of Hawaii is not ready to handle the surge of tourists who are expected to come from China. Dunkerley stated, "Where we are with the Chinese visitor is simply where we were back here with the Japanese visitor. We start at ground zero in relative terms, and the very same exercise of building a visitor experience which appeals to the Chinese visitor, who is very different than the Japanese visitor, is as much a task and a challenge today to the Chinese as it was in the '70s and '80s as we started getting the Japanese visitor coming.For us to be a good destination of Chinese visitors, the level at which Mandarin-speaking services are available in the community has got to expand dramatically. It's got to be represented in the restaurants, not just on the menu, but also in the ability of waitstaff to speak in Mandarin. It's got to be represented in small boutique retail and hotel reception. If we cannot create that, like we did for the Japanese, then we're setting ourselves a very, very tall bar to get over. So there's a lot of work to be done."

Mark Dunkerley noted that approximately 3 percent of Japan's population visits the United States each year.  Of that, approximately half (1.5 percent) visits Hawaii each year. Dunkerley added, "If you take that 3 percent and apply it to the Chinese population and extrapolate it out, you would get to 39 million coming to the U.S.. In other words, 10 times the size of the Japanese visitor base. And if you take half of that roughly, you will get 15 million visitors to Hawaii from China. That won't happen overnight, and it may not actually ever happen, but it gives you a sense the demand from China could represent."

Source: Honolulu Star Advertiser, 4-25-2014, www.staradvertiser.com
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New Union Contract Approved for Ala Moana Hotel Workers

Ala Moana Hotel workers have a new contract thanks to the Unite Here! Local 5 union.  The new contract will, over a period of 5 years, increase the wages and benefits for the 327 unionized employees that will match compensation scales with other hotel workers represented by Local 5. Ala Moana Hotel's general manager, Bill Comstock, stated, "We deeply value the contributions that each of our 300 Ala Moana Hotel employees provide to enhance the guest experience at our hotel. We're pleased to offer appropriate payment and advancement opportunities that make Ala Moana Hotel a kamaaina favorite not just for our guests, but also for our staff."

The Unite Here! Local 5 union noted that after factoring in the value of medical coverage and pension benefits, the low end of hourly pay at the hotel will equalize at about $31.  In a statement, the union wrote, "Bringing another hotel up to that level brings Hawaii's working people closer to achieving $31 for everyone."

Source: Honolulu Star Advertiser, 4-25-2014, www.staradvertiser.com
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Pagoda Hotel to Expand Brand to Maui

Developer Peter Savio has announced that he will be converting the Maui Beach Hotel into his Pagoda hotel brand by the end of this year.  The purchase of the Maui Beach Hotel is scheduled to close on June 27, 2014, and is currently being managed by Aqua Hotels and Resorts.  Savio stated that he would retain all of the current employees and hire additional ones after he expands the property by adding an additional 155-room hotel to the site.  The Pagoda Hotels caters primarily to locals and college students.  Savio stated, "The Maui Beach will keep its name and join the other hotels in the Pagoda Collection, which includes the White Sands Hotel and the Ewa Waikiki Hotel in Waikiki."

Source: Honolulu Star Advertiser, 4-24-2014, www.staradvertiser.com
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Update on Kakaako Makai and Office of Hawaiian Affairs

The Office of Hawaiian Affairs has requested that the state legislature show their support for Senate Bill 3122, which would allow the development of high-rise housing in Kakaako Makai, a 31 acre property on the ocean side of Ala Moana Boulevard.  Under Senate Bill 3122, OHA would be allowed to create three residential towers between Kewalo Basin and Honolulu Harbor.  Two of the properties would be a maximum of 400 feet tall and one of the properties would be limited to 200 feet tall.

Kakaako Makai was transferred to the Office of Hawaiian Affairs in 2012, to help settle a long-disputed ceded-land revenue claim.  At that time, Kakaako Makai was valued at $200 million by the state of Hawaii, but OHA has since stated that the land, in its present commercial zoning, is not worth that much.  In order to increase the value of land to $200 million, OHA has asked to build a couple of residential properties.  The rental income generated by these properties would help to fund programs and services benefiting native Hawaiians. The Office of Hawaiian Affairs promises that the development of Kakaako Makai will be done in such a way that balances commerce and culture without inhibiting public access to the shoreline.

Source: Honolulu Star Advertiser, 4-23-2014, www.staradvertiser.com
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Vision to Increase Shared Office Space in Chinatown Neighborhood, Oahu

Real Office Centers has stated that they will be working to create a new shared office space in Chinatown, in a two-story building on the corner of North Hotel Street and Nuuanu Avenue.  The concept of the shared office space has been around for several decades, and, in this case, would offer up to 30 small companies a mailing address, phone answering and forwarding service, conference room rentals, and office space for lease on a full or part time basis. Currently, the Waikiki Landmark building in Waikiki, the Ala Moana Center in Ala Moana and the Waterfront Plaza in Kakaako offer shared office spaces.

According to Ron McElroy, the CEO for Real Office Centers, the Chinatown location would offer 14,000 sq ft of office space.  McElroy hopes that a grand opening can be held sometime next month.

Source: Honolulu Star Advertiser, 4-22-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Waikiki Visitors and Industry Officials Unhappy About Increased Number of Homeless in Neighborhood

Laurel Mackie, a Canadian visitor who has come to Waikiki for the past 28 years, shares the growing concern that the homeless population in Waikiki is getting out of hand. Mackie stated, "I look out of my balcony and I see people passed out. And, worse yet, I have friends that have been physically assaulted by the homeless. With safety concerns and the fact that Waikiki is becoming an overpriced Beverly Hills slum of the Pacific, it seems a no-brainer to think about choosing another destination."

Tourists and visitor industry officials have come to an agreement that the rise in chronic homelessness in Waikiki has grown tremendously in the past few years ad are calling on the state and city to take immediate action to this crisis.  State Senator Brickwood Galuteria, who represents Waikiki, agrees, and commented, "I consider homeless to be a natural disaster situation not unlike a tsunami of sorts, and the tone of the response should be equal to that."

According to the U.S. Department of Housing and Urban Development, between 2007 and 2014, the number of chronic homelessness in Hawaii grew by 32.5 percent. Tourism officials are concerned that the state's $15 billion visitor industry will suffer as more and more visitors complain about their encounters with the homeless whom the meet in Waikiki.

Tourism officials say they are worried about the impact on the state's $15 billion visitor industry as more and more visitors publicly complain about encounters with homeless people throughout Waikiki. George Szigeti, the president and CEO of the Hawaii Lodging & Tourism Association, added, "We don't like homeless challenges anywhere, but the visitor industry supports 175,000 jobs across the state and Waikiki is the economic engine that drives that train. We spend millions marketing the state to get tourists to come here. We have to protect their experience. If we don't, everybody loses because the negative economic impacts will spread."

Jesse Broder Van Dyke, spokesman for Honolulu Mayor Caldwell, stated, "Complaints about homelessness in general and in Waikiki are received daily via mail, email, phone and in person. As media attention to the issue has increased, so has public outcry. Public awareness and understanding of the issue (are) essential to justifying the expense of making progress." Van Dyke added that the Caldwell administration is proposing to spend $18.9 million for the Housing First project and $3 million for support services.  However, the Honolulu City Council will have to approve the allocation of these funds.

Source: Honolulu Star Advertiser, 4-20-2014, www.staradvertiser.com
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Mokulele Airline Prepares for Service Out of Kalaeloa Airport on Oahu

Mokulele Airlines hopes to start the first-ever commercial flight service from Kalaeloa Airport on July 1, 2014. Kalaeloa Airport, located on the west side of Oahu, was previously known as the Barbers Point Naval Air Station. There are still a lot of hurdles for Mokulele Airlines to overcome, including finalizing a lease with the state to rent the property. However, officials for the airline are confident that everything will fall into place.

Tentatively, the airline plans to fly two to three daily flights from Kalaeloa Airport to Kahului (Maui), Molokai and Lanai, as well as possible service to Kapalua (West Maui). Mokulele current operates more than 120 flights per day and connects Oahu, Molokai, Lanai, Maui and Hawaii (Big Island of Hawaii) island.  According to a previous press release, they plan to purchase two of three more small Caravan planes to help meet demand.

The majority of the West Oahu residents are delighted by this news. Dean Capelouto, the transportation committee chairman of the Makakilo/Kapolei/Honokai Hale Neighborhood Board, commented, "There's a lot of people looking at this as an option of flying from the neighbor islands to get directly to Ko Olina, which is only a hop, skip and a jump from Kapolei. We're supportive of this as a neighborhood board because it promotes business of all sorts. It actually adds potential jobs in our community either via the connector taxi service picking people up from Kalaeloa and taking them where they need to go or at the ticket counter."

Source: Honolulu Star Advertiser, 4-20-2014, www.staradvertiser.com
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Update on Turtle Bay Resort

This past week the State of Hawaii and the City and County of Honolulu signed a preservation agreement with Turtle Bay Resort on the North Shore of Oahu.  Under this agreement, a total of 665.8 acres of land owned by Turtle Bay Resorts will be barred in perpetuity from any development.  Furthermore, there will be two planned oceanfront parks at Kawela Bay and Kahuku Point that will be reserved for public use.  In exchange for this concession, Turtle Bay would be paid $40 million from the state, $5 million from the city and $3.5 million from the nonprofit Trust for Public Land.  The owners of Turtle Bay would still have the legal right to develop two hotels for a combined 625 rooms and another 100 homes of 150 acres of land that front the ocean.

While many North Shore community members are happy with this compromise between the government and Turtle Bay Resorts, there are three major community groups that are still protesting the decision and state that this does not resolve their pending legal actions over development.  Defend Oahu Coalition, Keep the North Shore Country and Unite Here! Local 5 stated that they will continue to fight Turtle Bay's expansion plan of building two more hotels and 100 additional homes.

Source: Honolulu Star Advertiser, 4-19-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Electrical Rates Increase on Oahu for April 2014

According to the Hawaiian Electric Company, residential electrical rates increased to 33.8 cents per kilowatt-hour in April 2014, from the 33.6 cents per kilowatt-hour posted in March.  In comparison, Maui Electric Co. charged their residents 36.5 cents per kilowatt hour, Big Island residents paid 39.1 cents per kilowatt-hour, and Kauai residents paid 41.8 cents per kilowatt-hour.  According to the U.S. Energy Information Administration, Hawaii resents spent an average of 37.4 cents per kilowatt-hour in January 2014, while the national average was just 11.7 cents per kilowatt-hour.

Source: Honolulu Star Advertiser, 4-19-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Update on The Collection Project in Kakaako

Developer Alexander & Baldwin has announced that they plan to start construction of The Collection project in Kakaako by the end of this year.  Currently, more than 60 percent of the units in the 43-story tower have been sold.  The project will also be releasing 54 units in a four-story building and 16 three-story townhouse units to the public soon.  As soon as 60 percent of the combined 467 units (tower and low-rise buildings) have been sold, construction will commence.

Source: Honolulu Star Advertiser, 4-18-2014, www.staradvertiser.com
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Unemployment Rate Falls to 4.5 Percent in March 2014

According to a report issued by the state Department of Labor and Industrial Relations, Hawaii's seasonally adjusted unemployment rate fell to 4.5 percent in March 2014.  This is the lowest level that it has been in over five years. Honolulu County had the lowest unemployment rate at 4.0 percent.  Maui County had a 4.9 percent unemployment rate.  Kauai County had a 5.3 percent unemployment rate. Hawaii County (Big Island of Hawaii) had a 5.9 percent unemployment rate. County data is not seasonally adjusted.  Nationally, the unemployment rate was 6.7 percent.

Source: Honolulu Star Advertiser, 4-18-2014, www.staradvertiser.com
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Update on Live Work Play Aiea Project

Robertson Properties has won final approval from the Honolulu City Council to build their new project called Live Work Play Aiea.  Located on the former Kam Drive-In site across from the Pearlridge Center, the plan calls for building a total of 1,500 residential units, retail and office space, a senior living facility and a limited service hotel. One concession that the developer agreed to make was to build 450 affordable housing units in the area, or at least in the vicinity of other hubs along the Honolulu Rail Project line.  At least half of those affordable housing units would have to located at Live Work Play Aiea.

Some residents currently living in the neighborhood are concerned about the increased traffic and the possible loss of view planes.  According to Robertson Properties, there will be a total of five towers.  Two of the towers will be 150 feet tall, while the other three can be a maximum of 250 feet, 300 feet and 350 feet respectively. Robertson Properties will also spend several million dollars to improve the roads in the surrounding area.

Source: Honolulu Star Advertiser, 4-17-2014, www.staradvertiser.com
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Hapalua Half-Marathon Drawing More Participants

This past weekend, the Hapalua Half-Marathon celebrated its third annual race and attracted a total of 4,462 participants, a significant increase from the 2,900 runners that they had last year. The race starts in Waikiki, goes to downtown Honolulu, doubles back towards Waikiki, goes around Diamond Head, and finishes at Kapiolani Park in Waikiki.  The Hapalua Half-Marathon generates an estimated $2.5 million in direct and indirect spending in Hawaii and generates about $40,000 for local charities.  Jim Barahal, the even organizer has high hopes for increasing the size of the Hapalua in the near future.  Barahal stated, "If you look at the world of running, the fastest growing event by far are the half-marathons. We wanted to create a world-class, destination event that would bring people from other places to Hawaii and create a broad base of community involvement by raising money for local causes." Barahal added, "Our partners with the Honolulu Marathon and our ad agency were made aware of Hapalua from its inception. Once we started to demonstrate the event's growth and the quality of the experience, we were able to bring in two of our marathon sponsors, Japan Airlines and MUFG, a large credit card sponsor. This is a critical step considering that their influences and reach is enormous and by putting their sponsorship to the event, they are giving their stamp of approval."

President and CEO for the Hawaii Tourism Authority, Mike McCartney added, "The draw of the Hawaiian Islands and the growing interest in the shorter half-marathon will help to attract visitors to the state during the traditionally slower spring shoulder period. If you think about the numbers that we are seeing now, Hapalua could over the next couple of decades turn into an event that also attracts 25,000 to 30,000 people."

Source: Honolulu Star Advertiser, 4-16-2014, www.staradvertiser.com
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Hawaiian Airlines Now Offers Direct Route to Beijing

Hawaiian Airlines is now offering nonstop service to Beijing, China three times per week on one of their 294-seat Airbus A333-200 aircraft.  President and CEO for Hawaiian Airlines, Mark Dunkerley, stated, "In the decades ahead of us, tourism from China is going to be one of the sustaining pillars of our local economy. It is Hawaiian Airlines' mission to encourage and support a healthy tourism industry in our islands." Peter Forman, a local aviation historian, commented, "It's not only a major move for Hawaiian but a major plus for the state of Hawaii because they're going to bring in lots of tourists from China.  This could be the beginning of ultimately some very important flying from China. China could grow to be a real force in Hawaii's tourism economy in the future, so this is an important first step in making that happen."

The Hawaii Tourism Authority believes that this new route from Beijing to Honolulu will generate $81 million in annual visitor spending and increase state tax revenue by $8.47 million. Chinese visitors spent approximately $397.30 per day, which is $120 more per day than the second highest group, the Japanese. Vice president of brand management for the Hawaii Tourism Authority, David Uchiyama, commented, "A lot of the China success is tied to not only passengers that originate out of those points (in Beijing and Shanghai) but the ability to draw from regional feeder cities and connect to the carriers. I think Guangzhou would be the next likely candidate for China-Honolulu service because of the population based within the city, and its (geographical) relationship to Shanghai and Beijing because it forms a triangle there."

Source: Honolulu Star Advertiser, 4-15-2014, www.staradvertiser.com
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Honolulu Bill Would Make Simulated Gambling Machines Illegal on Oahu

Gambling, in any form, is illegal in the state of Hawaii.  However, in recent years the Products Direct Sweepstakes machines have become extremely popular around Oahu.  While they may appear to be slot machines from the exterior, developers and operators of these devices insist that they are not gambling machines, but rather sweepstakes machines where people can win prizes without any purchase. Of course, if a patron would like additional opportunities to win a sweepstakes prize, they can purchase credits to play on. So far, there have been several raids conducted by local law enforcement agents, but the city's prosecutor's office has not yet prosecuted anyone in those arrests.  City officials stated that they are waiting for a clarification in the law.

A bill is currently before the Honolulu City Council would make it illegal to own, operate or use any simulated gambling machine on Oahu, including the Product Direct Sweepstakes machine. Under the bill, it would be illegal to "manage, supervise, maintain, provide, produce, possess or use" the machines. The violation would be considered a misdemeanor and punishable by a fine of up to $1,000, up to 30 days in jail or both.

Source: Honolulu Star Advertiser, 4-14-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
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54-Acre Commercial Land in Kapolei Purchased for $24 Million

Avalon Development Co. LLC, a local development firm, has announced that they have purchased the second phase of the Kapolei Business Park for $25 million.  The tentative plan is to divide the 54-acre industrial subdivision into 17 smaller lots to sell to businesses that have industrial needs. Avalon also plans to retain a total of 26-acres into a commercial complex with space available for businesses to lease.  President and CEO of Avalon, Christine Camp, stated, "This is an unprecedented time for growth of construction-related industries on Oahu. With limited land available for private ownership, Kapolei Business Park will be a beacon for small-business empowerment." Camp added that she plans to start sales soon, and hopes to be able to deliver the lots to buyers by the end of this year.

Source: Honolulu Star Advertiser, 4-11-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
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King's Village Project in Waikiki Update

A development partnership which consists of BlackSand Capital LLC, Kobayashi Group and The MacNaughton Group, are proposing to demolish the King's Village retail complex in Waikiki and build a new 350 foot tall condominium hotel tower.  Under the proposal, the new condominium-hotel would feature 256-units, a parking deck, a retail an office center and a small park.  In return for the City and Council to allow the project, which exceeds the current 240-foot height limit, the development partnership will pledge over $1 million to the improvement of Waikiki.  This amount is broken down as follows:

$500,000 for Waikiki beach replenishment.
$200,000 to the city for use in helping Waikiki's homeless community.
$200,000 to keep public bathrooms in Waikiki open after 10 p.m.
$100,000 toward construction of Americans with Disabilities Act improvements for access and for a bathroom at Waikiki Community Center.
Construction and maintenance of a "pocket park" on Prince Edward Street.

The majority of the Waikiki Neighborhood Board has been very supportive of the project, mainly thanks to the fact that this development partnership has come to them in the first place for their thoughts and assistance.  Bob Finley, the chairman of the board, stated, "[The development partnership] asked the board and the Waikiki Improvement Association to help them come up with a list of community improvements and they've been working with people in buildings about their view planes.  This was done with a whole lot more transparency than the PACREP 2121 and 2139 Kuhio project. I don't see a lot of opposition coming."  Finley is referring to the two luxury towers, also known as the Ritz-Carlton Waikiki Beach Residences.  

President and CEO of Hospitality Advisors LLC, Joe Toy, commented, "Given costs and barriers to entry in Waikiki, it's hard for investors to get a big enough return on investment to warrant building full-service hotels.  In this case, we've got a very nice project done by people that have roots here.  They're a good example of the local stewardship that in some respects we've lost a little bit of in Hawaii."

Source: Honolulu Star Advertiser, 4-10-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Update on 'Ohana Hale in McCully - Moderate Priced Condominium Tower

Franco Mola, a local Hawaii developer, is hoping to build a 21 story condominium tower in McCully with a total of 180 studio and one-bedroom units.  The project, called 'Ohana Hale, would be located on the corner of McCully and South King Street.  According to Mola the units would range in price from $250,000 to $440,000 Fee Simple. The majority of the units would be restricted to buyers who earn nor more than 120 percent of Honolulu's median annual income.  This equates to $80,000 for a single person, or $92,000 for a couple.  Mola stated, "Most of the recent residential condominium developments in urban Honolulu are in the luxury price range.  'Ohana Hale provides more affordable and modest-sized market-rate units to fill the void that is ever-increasing in the urban Honolulu housing market."

However, the McCully-Moiliili Neighborhood Board has raised several objections to the project. Currently there is a height restriction for the area of 150 feet, and Mola is requesting that be raised to 189 feet.  Furthermore, Mola is requesting a zoning variance to double the allowable unit density and to reduce the setbacks to increase the building's size.  Finally, neighbors note that building a 21 story condominium on the property would greatly change the appearance of the area, which is currently low-rise residential properties and a few commercial buildings.  The neighborhood board is willing to support the project, provided that Mola decides to not to request any zoning variances.

Source: Honolulu Star Advertiser, 4-10-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Hotel Industry Sets New Record for Revenue Per Available Room (RevPAR) in February 2014

According to Hospitality Advisors LLC, Hawaii hotels set a new record for Revenue Per Available Room (RevPAR) in February 2014 at $212.96.  This represented a 5.3 percent increase from February 2013.  RevPAR is calculated by multiplying the hotel's average daily rate by total occupancy.  According to industry experts, a strong RevPAR signifies that the hotels are generating a good earning power on their hotel rooms regardless of whether they are occupied.  Joseph Toy, the president for Hospitality Advisors, stated, "RevPAR records are being set throughout Asia and the mainland.  The good news is that Hawaii is among the top five RevPAR markets in the U.S.  We're generally the No. 2 market behind New York City, so we're getting lots of attention."

Statewide, occupancy decreased slightly by 0.09 percent to 87.2 percent in February.  Average daily rates, however, climbed to $251.13.

Waikiki had the highest occupancy rate of the state at 90.8 percent, with an increased average daily rate of $222.99, a 6.6 percent increase.  RevPAR for Waikiki increased to 6.4 percent, or $202.47.

Maui saw a slight decrease in occupancy rate and posted a 80.6 percent rate.  ADR increased by 8.3 percent to $331.02.  RevPAR increased by 6.1 percent to $266.80.

Kauai had an occupancy rate of 79.6 percent.  ADR rose 3.9 percent to $237.87.  RevPAR increased by 1.1 percent to $189.34.

Hawaii (Big Island of Hawaii) had an occupancy rate of 76.5 percent.  ADR increased by 5.6 percent to $245.19. RevPAR increased by 3.2 percent to $187.57.

Source: Honolulu Star Advertiser, 4-9-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Real Estate Sales Data for the Island of Maui in March 2014

Source: Realtors Association of Maui

Single Family Home Sales for the Island of Maui

March 2014 - 69 Houses Sold - $596,000 Median Price

March 2013 - 80 Houses Sold - $509,500 Median Price

Condominium Sales for the Island of Maui

March 2014 - 127 Condos Sold - $420,000 Median Price

March 2013 - 101 Condos Sold - $375,000 Median Price

Source: Honolulu Star Advertiser, 4-8-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Real Estate Sales Data for the Big Island of Hawaii in March 2014

Source: Hawaii Information Service

Single Family Home Sales for the Big Island of Hawaii

March 2014 - 137 Houses Sold - $329,750 Median Price

March 2013 - 141 Houses Sold - $270,000 Median Price

Condominium Sales for the Big Island of Hawaii

March 2014 - 63 Condos Sold - $315,000 Median Price

March 2013 - 54 Condos Sold - $310,750 Median Price

Source: Honolulu Star Advertiser, 4-8-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Real Estate Sales Data for the Island of Kauai in March 2014

Source: Hawaii Information Service

Single Family Home Sales for the Island of Kauai

March 2014 - 46 Houses Sold - $562,500 Median Price

March 2013 - 37 Houses Sold - $477,500 Median Price

Condominium Sales for the Island of Kauai

March 2014 - 23 Condos Sold - $295,000 Median Price

March 2013 - 26 Condos Sold - $360,000 Median Price

Source: Honolulu Star Advertiser, 4-8-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com