Waikiki Improvement Association Suggests Program to Send Homeless Back to Mainland

Rick Egged, the president of the Waikiki Improvement Association, has stated that his organization may create and fund a program to pay for the airfare for homeless people living in Hawaii who would like to return to the mainland United States.  This program would be similar to the one proposed by the state Legislature last year called Return to Home. The state Department of Human Resources rejected the Return to Home program due to a concern that some would view it as an open invitation to purchase a one-way ticket to Hawaii with a guaranteed return flight home.

According to a recent study, Oahu's homeless population has increased by 32 percent over the last five years. Experts contend that a substantial percentage of this increase is due to new arrivals from the mainland United States who are attracted by the warm weather and beaches and the easy access to general assistance and universal health coverage.

Source: Honolulu Star Advertiser, 6-30-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Howard Hughes Corp to Lease Kewalo Basin Small Boat Harbor

The Hawaii Community Development Authority has announced that they have given the Howard Hughes Corp a 45 year long lease for the Kewalo Basin small boat harbor.  Under the agreement, Howard Hughes will spend about $20 million to replace every existing pier and dock at the 144-slip harbor and add an additional boat-slips. They will also create a pier-front pedestrian promenade, install a sewage pump -out system and put barriers in the water to reduce the impact of ocean swells.  Howard Hughes plans to make all of the upgrades in two to five years.  Under the lease agreement, Hughes Corp would pay the HDCA $550,000 upfront and an annual rent that would generate approximately $14 million over the first 30 years.

The Howard Hughes Corp owns the 60 acres mauka (towards the mountains) of the harbor and plans to spend $7.5 billion to redevelop the Ward Centers area.  They have already been given approval to build 22 residential towers, several of which overlook the harbor.  Race Randle, the director of development for Howard Hughes Corp, stated, "We see this as a real exciting opportunity for our company, to make Kewalo Basin a great place."

Source: Honolulu Star Advertiser, 6-28-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Several Mililani Mauka Homes Have Fire Ant Infestation

According to officials from the state Department of Agriculture there are at least six homes in Mililani Mauka which have been confirmed to have a fire ant infestation.  The department is now surveying another 125 houses around the 95-1000 block of Auina Street to see how far the problem has spread. Once the scope of the problem is identified, a plan to treat the area will be created.  The little fire ants are an invasive species that are pale orange and measure one-sixteenth of an inch long. They are known to sting and cause large, red welts on humans and the ants an also cause blindness in pets. If the pet is stung in the eye, a cataract will form, and the pet will lose its vision.  Rob Curtiss, the acting manager for the Department of Agriculture's pest control branch, stated, "There's a lot of problems with having little fire ants, so that's why it's important that we get rid of it as soon as we find it.  Then once we stop finding ants, we continue surveying up to three years, and if after three years we never find any more ants, then we'll be confident that we've eradicated it."

Source: Honolulu Star Advertiser, 6-28-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

The Future of Aloha Stadium

The Aloha Stadium Authority has announced that they are considering several options regarding the 39 year-old facility.  One option would be to renovate the existing stadium, but the Department of Accounting and General Services estimates that they would need to spend approximately $120 million for high priority health and safety improvements to keep the stadium operation for the next 5 to 10 years.  The second option would be to build a new smaller stadium with between 30,000 and 40,000 seats, which would include premium seating options and other modern amenities.  This would cost between $132 million to $192 million, but could save the state $2.4 million to $3.2 million a year in operating costs.  The Aloha Stadium Authority will be hosting a couple of town hall style meetings to solicit the public's suggestions and opinions.

Source: Honolulu Star Advertiser, 6-27-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Vida - A New Luxury Condominium in Kakaako Announced

Kamehameha Schools has announced a new luxury condominium in Kakaako.  Located at 888 Ala Moana Blvd on a site currently occupied a Cutter automobile dealership, the condominium tower is tentatively named Vida.  It will be a 38-story tower with a total of 265 two-bedroom and three-bedroom units.  The Kobayashi Group and The MacNaughton Group will be developing the 3.4 acre property, and have stated that the units will range from $900,000 to about $4.7 million. Duncan MacNaughton, the chairman of the MacNaughton Group, stated that Vida will be an "understated, yet superb" residential tower. MacNaughton added, "We've built a reputation on our uncompromising standards of quality, and Vida at 888 Ala Moana will set another benchmark of excellence for future residential communities in Hawaii."

The developers will still need to obtain a permit from the Hawaii Community Development Authority, but it should be approved considering that Vida is part of Kamehameha School's master plan called Our Kakaako.  Our Kakaako as a whole has been approved to build up to seven towers with 2,750 units within nine contiguous blocks.

Source: Honolulu Star Advertiser, 6-26-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Sewer and Water Rates Increase for Oahu Residents

Sewer and water rates will increase for all Oahu residents starting July 1, 2014.  The Department of Environmental Services stated that both the monthly base fee and usage charge will increase by 4 percent this year.  This is part of a plan approved by the Honolulu City Council in 2012 where rates will increase by 4 percent per year for the first four years, 5 percent in the fifth year and 8 percent in the sixth year.  The increase will allow the city to pay for capital improvements, service debt repayments, and make upgrades to the sewer system.

The Honolulu Board of Water Supply will also be increasing their monthly flat rate charge and their usage rate charge.  This is the fourth rate increase of a series of five rate increases that began in January 2012.  The Board of Water Supply stated that these hikes are necessary to ensure adequate infrastructure and treatment system operations, and keep up with increases in cost for everything from fuel and materials to labor.

Source: Honolulu Star Advertiser, 6-25-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Bill Proposed to Make It Illegal to Sit or Lie on All Sidewalks on Oahu

Honolulu City Councilman Ikaika Anderson has proposed a bill which would make it illegal to sit or lie on any sidewalk on Oahu as well as a separate bill that will make it illegal to urinate or defecate on public sidewalks. Last week, Mayor Kirk Caldwell had proposed a bill which would make these actions illegal in Waikiki and City Councilwoman Carol Fukunaga followed up with a bill that would make it illegal to sit or lie down on sidewalks in the Downtown-Chinatown areas.  Anderson stated, "I hear loud and clear the concerns of others throughout the City and County of Honolulu, that people will simply pick up and move to other areas. It may be possible to address all of this with simple, islandwide bills."

Homeless advocates argue that laws disrupting the homeless on public sidewalks serve to criminalize the homeless populations.  Several public hearings are planned for people to voice their opinions for and against the proposed bills.

Source: Honolulu Star Advertiser, 6-25-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Island Air Posts $3.3 Million Loss in First Quarter of 2014

According to a report released by the U.S. Department of Transportation, Island Air has posted a $3.3 million loss during the first quarter of 2014.  Island Air is a private company owned by billionaire Larry Ellison, but is still required to report its financial data to the Department of Transportation.  Due to the deep pockets of Ellison, experts in the field aren't especially worried and simply feel that Island Air needs some time to turn around its operations.  Peter Forman, an aviation historian, stated, "Island Air is working very hard on improving the quality of its product, and they've made tremendous headway there, but there is a delay between the time you improve your product and the response by the traveling public. I would expect their revenue would be improving in the future, which will affect their bottom line."

Island Air currently operates more than 250 weekly flights between Oahu, Maui, Kauai and Lanai.  The airlines is currently phasing out its older 37-seat Bombardier planes for newer 64-seat ATR-72 turboprop planes.  Forman added, "The solution (for Island Air becoming profitable) will be on the revenue side and whether it attracts enough passengers to fill those seats better in the future.  I remain optimistic about the long-term prospects for Island Air. The disappearance of go! (airline) will help Island Air's numbers in the future."

Source: Honolulu Star Advertiser, 6-24-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Governor Abercrombie and Senator Ige Both Oppose OHA Condominiums in Kakaako

Governor Neil Abercrombie and state Senator David Ige, who will be challenging the governor in this upcoming election, have both stated that they oppose the Office of Hawaiian Affairs from developing high-rise condominiums near the ocean at Kakaako.  OHA is requesting the state for permission to build several residential high-rise building the Kakaako makai parcels that they had received from the state in 2012.  Abercrombie stated, "So the simple, straightforward answer is no, I don't support residential high-rises down there. I didn't support it before, I don't support it now. That doesn't mean that they can't make some proposal regarding residences down there that might achieve broader public acceptance."  Ige added, "I'm open to considering alternative solutions that enable the preservation of Kaka­ako makai as publicly accessible open space without residential high-rises."

Source: Honolulu Star Advertiser, 6-23-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Polynesian Cultural Center Plans to Build Outdoor Marketplace

The  Polynesian Cultural Center has announced that they plan to build a 119,000 sq ft marketplace in front of their main attraction with free admission and free parking with validation. The Hukilau Marketplace is scheduled to open in January 2015 and will offer retail, dining and entertainment to patrons who decide not to enter the main park.  Alfred Grace, the president and CEO of the Polynesian Cultural Center, stated, "This is a really huge undertaking for the Polynesian Cultural Center. It really is the first time that we have reached out to the public with an offering that does not require an admission ticket and that will provide guests with a short-term experience at the Polynesian Cultural Center. Everything prior to that has been based on guests, visitors and locals alike, spending a full day at the Polynesian Cultural Center. So for the people driving around the island or looking for something to do for a couple of hours, this is an entirely new offering."

The marketplace will be open from 10 a.m. to 10 p.m. Monday through Saturday and will have several restaurants, a bakery, foot trucks, a high-end Hawaiian jewelry store, an ukulele shop, and other retail stores and kiosks.  Grace added, "We think that there's some great opportunities falling into place for the Polynesian Cultural Center and this community to be more self-sustaining. We haven't really ever been able to take advantage of the drive-by traffic that we have on Kamehameha Highway. With the marketplace and the (new) hotels (being built), the growth rates at the PCC actually will increase going forward rather than diminish as they have in recent years. We are confident we will see a reasonable return on our investment from this marketplace based on all the projections that we've done and the projections that Colliers Hawaii did. They also did an analysis of drive-by traffic and people who would stop and go to the PCC. We used some fairly conservative estimates to come up with some initial return on investment forecasts."

Source: Honolulu Star Advertiser, 6-22-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

New Bill Would Prohibit Sitting or Lying on Public Sidewalks in Downtown Honolulu

Last week, Mayor Kirk Caldwell proposed a bill that would prohibit people from sitting or lying on public sidewalks in Waikiki.  Impressed by this idea, City Councilwoman Carol, Fukunaga has proposed Honolulu City Council Bill 45 which would make sitting and lying on public sidewalks also illegal in the downtown Honolulu neighborhood, specifically from Chinatown to Ward Avenue in Kakaako.  Fukunaga stated that her constituents complain to her office daily about people lying or sitting on the sidewalks, blocking pedestrian access.  Fukunaga commented, "This is a big problem that has affected businesses and their ability to function in the manner that their businesses were intended."  Similar laws were passed in Seattle and San Francisco and were deemed to be constitutional.

If both bills are passed, it is predicted that the homeless could be forced to relocate to other nearby neighborhoods like Ala Moana, McCully and Moiliili.

Source: Honolulu Star Advertiser, 6-21-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Wailea Beach Marriott Resort & Spa to Sell for $325.7 Million

Sunstone, a real estate investment trust, has announced that they have agreed to purchase the 544-room Wailea Beach Marriott Resort & Spa on the island of Maui for $325.7 million. The company added that they plan to invest about $65 million to upgrade the property over the next two years, which will hopefully allow them to raise the hotel's average daily rate.  Evan Pahaski, Sunstone's vice president of corporate transactions, stated, "Sunstone has been looking in Hawaii for quite some time. It's a great market with a lot of different demand generators in leisure and group. South Maui, specifically Wailea, has always been a prominent resort address on Maui."  Ken Cruse, the CEO for Sunstone, added, "Wailea is one of the most attractive and supply-constrained leisure and group destinations in the United States."

Source: Honolulu Star Advertiser, 6-20-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Hawaii Unemployment Rate Steady at 4.4 Percent in May 2014

According to the State of Hawaii's Department of Labor and Industrial Relations, Hawaii's seasonally adjusted unemployment rate held steady at 4.4 percent in May 2014. The last time the unemployment rate was this low was in August 2008.  In comparison, the most recent peak occurred during the Great Recession in July and August of 2009 when unemployment hit 7.1 percent.

One thing that the state noted was that the construction industry has been gaining jobs at a steady pace.  Leroy Laney, a professor of economics and finance at Hawaii Pacific University, commented, "The increase in construction workers reflects what's going on in the construction sector, which is a positive sign because it remained dormant so long.  It can be expected to continue with all the construction going on in Kakaako and various places. The unemployment rate remains one of the lower unemployment rates in the country.  It's not a negative sign that it remains at 4.4 percent. At least it's not rising."

Source: Honolulu Star Advertiser, 6-20-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Honolulu Rail Project May Use Eminent Domain to Acquire Properties in Honolulu

The Honolulu Authority for Rapid Transportation (HART) needs to purchase a total of 146 full or partial properties along the path of the Honolulu Rail Project. Currently, the city has spent $61 million to purchase 67 properties west of Honolulu.  While in most cases, owners and business in the city of Honolulu itself are willing to cooperate with HART, there have been some challenges, especially with the need to build the rail in such a tight time frame. This means that eminent domain may be used to acquire the properties.  Dan Grabauskas, the executive director of HART, stated, "We won't hold up the project. If our negotiations haven't gone to where they need to be, or aren't going in the right direction, then we may concurrently file for eminent domain."

Under city and state law, when the government needs to build large public works projects such as a new highway, or in this case, the government has a right to acquire any private properties in its path.  The government is then required to give "fair compensation" to the owner, but what is fair to the government may not be considered to be fair by an individual.  HART has announced that they have already contacted all of the property owners whose land may be affected and are will be entering discussion with all of them shortly.

Source: Honolulu Star Advertiser, 6-20-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Aloha Tower Marketplace Has Ceremonial Groundbreaking Ceremony

A ceremonial groundbreaking ceremony was held at the Aloha Tower Market Place, signifying the start of Hawaii Pacific University's $40 million renovation plan for the struggling retail complex at Honolulu Harbor.  HPU plans to build a dormitory facility for 300 students, additional classrooms, a college bookstore, as well as additional restaurants and retailers.  The school anticipates that all of the construction work will be completed in 2015 to coincide with the university's 50th anniversary.  Geoffrey Bannister, HPU President, stated, "We are really on the way to revitalizing this area. Hawai'i Pacific University is invested in strengthening the Hawaii community, providing an exceptional educational experience for our students, and bringing new life and vitality to this much-beloved landmark."

It is projected that this renovation project will create 200 construction jobs and between 200 and 250 permanent jobs once completed.  Governor Neil Abercrombie stated, "I know this is the beginning of a spectacular rise not only in the educational offerings but in the revitalization of the entire urban core of Honolulu."  Honolulu Mayor Kirk Caldwell added, "Shortly there's going to be new life here. I see nothing but good in all of this."

Source: Honolulu Star Advertiser, 6-19-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Roadwork Scheduled for Kalanianaole Highway and Kamehameha Highway

The State of Hawaii's Department of Transportation have announced two new major highway repair projects, one on Kalanianaole Highway in East Oahu and one on Kamehameha Highway in Waipio and Mililani.  DOT officials stated that it has been nearly 30 years since a comprehensive repair project occurred on Kalanianaole Highway between West Hind Drive and hanauma Bay.  The work is nearly 15 years overdue, and it will take about $14 million to repair the 21 lane-miles of road.  Work in East Oahu will take place from West Hind Drive to Hawaii Kai Drive 9 a.m to 3 p.m. and from Hawaii Kai to Hanauma Bay Road 8:30 a.m. to 3 p.m. weekdays.  The project should be completed by February 2016.

The Kamehameha Highway repair project will cost about $13.3 million and will stretch from Ka Uka Boulevard to Waihau Street.  Work will commence from 8:30 a.m. to 3 p.m. on weekdays. This project should be completed by the summer of 2016. Jadine Urasaki, the Department of Transportation's director for capital improvement projects, stated, "Working through these corridors is often very unpopular due to the inevitable inconveniences that they create. However, we all know that it has to get done."

Source: Honolulu Star Advertiser, 6-19-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Allegiant Air Reduces Number of Routes to Honolulu

Allegiant Air has announced that they will be reducing their total number of routes to Honolulu down to two: one from Los Angeles and one from Las Vegas.  Allegiant once offered 10 different routes to the islands including service from Boise, Spokane, Eugene, Fresno, Bellingham, scottsdale, and Stockton.  Allegiant spokeswoman Lindsay Hernquist stated, "We weren't seeing the demand we were hoping to see, and we have a responsibility to our shareholders with our resources to use them effectively."  The airline will continue to offer seasonal flights from some of the above mentioned cities, but feels that the year-round demand is not there.

Source: Honolulu Star Advertiser, 6-18-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Proposed Obama Presidential Library Would Create Jobs and Revenue to State

According to the bid proposal submitted to the Barack Obama Foundation, building the Obama Presidential Library in Kakaako on the island of Oahu would create over $556 million in economic activity and generate 2,130 new jobs in the construction phase alone.  The museum is expected to attract 330,000 visitors every year making it one of Honolulu's top five cultural attractions.  David Lassner, the University of Hawaii President, stated, "Together, with our partners, we are proposing a vibrant institution that will explore the legacy of the 44th presidency, forge collaborative solutions to global problems and cultivate a new generation of leaders that will make lasting change."

The Hawaii Community Development Authority has offered to set aside 8 acres of land in Kakaako to host the Obama Presidential Library, interactive museum, visitor center, and presidential archive.  Most of the fundraising would be accomplished by the Barack Obama Foundation, leaving the state to pay for maintenance and upkeep. The long term financial benefits could be quite large as the Clinton Presidential Center in Little Rock, Arkansas has already brought in an estimated $2.5 billion in economic development to the city since construction began in 2001.

Source: Honolulu Star Advertiser, 6-17-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Hawaii Submits Bid for Barack Obama Presidential Library

The state of Hawaii has submitted an official bid to become the home of the Barack Obama Presidential Library. According to state officials, the proposed 8-acre site would be near Kaakako Waterfront Park and would include a presidential center and an educational academy.  Competition is expected to be quite fierce as several other cities including Chicago and New York have submitted bids.  The Barack Obama Foundation had stated previously that they would like to have the library in an international destination reflecting the president's values and priorities.  The foundation will select a site in early 2015.

Source: Honolulu Star Advertiser, 6-16-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

New Bills Proposed to Remove Waikiki Homeless

Honolulu Mayor Kirk Caldwell is proposing two new bills that will help to remove the homeless camping on the sidewalks of Waikiki.  The first bill would prevent people from sitting or lying on public sidewalks in the Waikiki Special District.  The second bill would prohibit urinating and defecating in public areas and privately owned areas open for public use within the Waikiki Special District.  If passed, both bills would be in effect 24 hours a day and breaking these laws would be considered to be petty misdemeanors carrying fines of up to $500 and 30 days in jail. Caldwell commented, "A 24-hour prohibition would ensure sidewalk access to the hotels and commercial businesses as well as ensure pedestrian safety for the visitors and abutting neighbors."

Source: Honolulu Star Advertiser, 6-16-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

St. Francis Healthcare System of Hawaii Scheduled to Reopen Liliha Facility

Over two years ago, the St.Francis Healthcare System of Hawaii was forced to close down its acute-care hospital facility in Liliha.  After a long company restructuring, they are now planning to reopen their Liliha location as a skilled-nursing facility with a total of 119 beds.  According to Jerry Correa, president and CEO of St. Francis, additional services would be added in the future, including a senior community center, assisted living, adult day care, and independent-living townhouses.  Correa stated, "We're repositioning this campus to what is the right fit for the campus in the community. We're targeting the population post-acute care. We met with caregivers, geriatricians and patients and clients in the neighborhood. We said, 'This is what we're going to build, what do you think?' Overwhelmingly what we got was, 'When? Hurry up.'"

Bruce Bottorff, the spokesman for AARP Hawaii, commented, "As Hawaii ages, access and affordability of long-term care services become increasingly important. Most Hawaii residents tell us they want to stay in their homes for as long as possible, but when the preferred option of remaining independent at home is no longer practical, it can be daunting for families to find the living environment that best meets the needs of an aging loved one. We welcome the development of affordable options that deliver the high quality of care our seniors deserve."

Source: Honolulu Star Advertiser, 6-14-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Residential Electrical Bills Increase on Oahu in June 2014

According to a statement issued by the Hawaiian Electric Company, Oahu residents can expect higher electrical bills in June 2014.  This is due in part to a slight higher electrical rates, 34.5 cents per kilowatt-hour in June as compared to 33.5 cents per kilowatt-hour a month before, and mainly because of a new sales decoupling tariff that was approved by the state Public Utilities Commission.  The decoupling tariff will come out to be about $4 per household and will help HECO cover their fixed cost as they begin to develop and install renewable energy sources.  Darren Pai, the spokesman for the Hawaiian Electric Company, stated, "We are continuing to work on lowering customers' bills by developing more renewable energy, increasing energy efficiency and pursuing liquefied natural gas as a cheaper, cleaner alternative to expensive imported oil."

Maui Electric Company customers will pay 37.6 cents a kilowatt-hour, up from 37.3 cents in May.  Big Island of Hawaii residents will pay 40.0 cents a kilowatt-hour in June, up from 39.8 cents a kilowatt-hour the month before.  Kauai residents will pay 42.2 cents a kilowatt-hour, down from 42.7 cents a kilowatt-hour in May.  As a point of comparison, the national average cost for electricity was 12.3 cents per kilowatt-hour in March 2014, per the U.S. Energy Information Administration.

Source: Honolulu Star Advertiser, 6-13-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

400 and 440 Keawe Street Projects In Kakaako Approved

The Hawaii Community Development Authority has given their approval for both 400 Keawe St and 440 Keawe Street in Kakaako.  The two mid rise buildings will be a 95-unit condominium project and an 88-unit rental complex respectively, and will be located on the square block that is currently bordered by One Waterfront Towers, Keawe St, Auahi St, and Pohukaina St.  400 Keawe St will be developed by Castle & Cooke Homes Hawaii, while Kamehameha Schools will develop the apartment complex.  There will also be some retail space and a restaurant located between the two buildings.

According to Castle & Cooke, prices are expected to range from the high $300,000s to the mid-$700,000s for one to three bedroom units.  Twenty of the 95 units will be restricted to buyers earning no more than 130 percent of Honolulu's median income.  Executive Vice President of Castle & Cooke, Bruce Barrett, commented, "We think there's a lot of demand for these price points. We have a project that differentiates itself. It's on a smaller and more human scale."

Source: Honolulu Star Advertiser, 6-11-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Howard Hughes' Waiea Breaks Ground

Executives of the Howard Hughes Corp, along with Governor Neil Abercrombie, Honolulu Mayor Kirk Caldwell and other distinguished guests, participated in the groundbreaking ceremony for Waiea, a new luxury high-rise residential condominium in Kakaako. According to plans, Waiea will be located at 1118 Ala Moana Blvd and will be a total of 36-stories with an unobstructed view of the ocean overlooking Ala Moana Beach Park and Kewalo Basin. It will be the first of 22 condominium towers in the new Ward Village that is being designed by Howard Hughes.  Mayor Caldwell stated, "Today's ceremony is about a new future for our city. We may not be big as a Shanghai or Hong Kong or a Tokyo, but we have the same quality product. Today's groundbreaking is about building more of that first-rate, first-class product that puts us out there as a true capital city."

According to the Howard Hughes sales team, only 30 percent of the units are still available. Prices range from $1.5 million for a 1B/2BA unit to $20 million for one of the penthouses. The Grand Penthouse is also available, and is expected to sell for just under $100 million.

Source: Honolulu Star Advertiser, 6-8-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Update on Ritz-Carlton Residences Waikiki Beach - Tower 2

Developer PACREP 2 LLC is requesting a Waikiki special district permit from the Honolulu City Department of Planing and Permitting Department to build a second tower next to the Ritz-Carlton Residences Waikiki Beach which will be located at 2121 Kuhio Avenue.  Under the proposal, PACREP 2 would build a second 350 foot story tower at 2139 Kuhio Avenue, which the hope that it would be completed by the end of 2016 or the beginning of 2017. Jason Gosfeld, the senior managing director for PACREP 2, commented, "Most of the inventory at tower one was sold in a very short period of time during the spring of last year. Demand for tower two feels really good. We've got lots of qualified prospects. We expect pricing to be fairly comparable to tower one, where unit sales ranged from the $500,000s to over $15 million."

However, there are some residents in Waikiki who are unhappy with the proposed second tower, arguing that it would create too much density, does not guarantee hotel jobs and does not offer enough parking.  Critics also believe that the second tower would violate Waikiki guidelines. Eric Gill, the financial secretary-treasure of Unite Here Local 5, stated, "The lawsuit on the previous 2121 Kuhio project remains unresolved, and here we are doubling the problem. We want them to do a full environmental impact statement rather than an environmental assessment, which has allowed them to gloss over issues about jobs, parking, height and configuration."

Source: Honolulu Star Advertiser, 6-7-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Royal Hawaiian Center Sold to J.P. Morgan Asset Management

J.P. Morgan Asset Management has announced that they have purchased the Royal Hawaiian Center in Waikiki from Kamehameha Schools.  While the exact sale amount or terms have not been disclosed, it is generally believed that the price in excess of $500 million.  The only thing that is known is that the purchase is for the Leasehold interest of the land for 60 years and Fee will be retained by Kamehameha Schools.  After that 60 year period, Kamehameha Schools would recover complete ownership of the property.

Chris Graham, the managing director of J.P. Morgan Asset Management, stated, "Kamehameha Schools has created, maintained and continually enhanced the world-class shopping and community destination. We are excited to continue Kamehameha Schools' responsible stewardship of this important local asset, its enthusiastic promotion of Hawaiian culture, and its enriching community programs."

Source: Honolulu Star Advertiser, 6-7-2014, 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 Oahu

Source: Honolulu Board of Realtors

Single Family Home Sales Data for the Island of Oahu
May 2014 - 305 Houses Sold - $682,000 Median Price
May 2013 - 266 Houses Sold - $630,000 Median Price

Condominium Sales Data for the Island of Oahu
May 2014 - 457 Condos Sold - $355,000 Median Price
May 2013 - 452 Condos Sold - $315,000 Median Price

Source: Honolulu Star Advertiser, 6-7-2014, 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 The Symphony Honolulu in Kakaako

Developer Oliver McMillian announced that they have sold 73 percent of the units in The Symphony Honolulu, which is located in Kakaako.  This equates to 285 units out of the 388 total available units in the building.  The building, which is located on the northwest corner of Ward Avenue and Kapiolani Boulevard has already gone vertical and is expected to be completed in 2016.

Source: Honolulu Star Advertiser, 6-6-2014, 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 for May 2014

Source: Hawaii Information Services

Single Family Home Sales Data for the Island of Kauai
May 2014 - 47 Houses Sold - $530,000 Median Price
May 2013 - 42 Houses Sold - $519,500 Median Price

Condominium Sales Data for the Island of Kauai
May 2014 - 35 Condos Sold - $385,000 Median Price
May 2013 - 30 Condos Sold - $364,750 Median Price

Source: Honolulu Star Advertiser, 6-6-2014, 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 for May 2014

Source: Hawaii Information Services

Single Family Home Sales Data for the Big Island of Hawaii
May 2014 - 157 Houses Sold - $278,500 Median Price
May 2013 - 164 Houses Sold - $300,000 Median Price

Condominium Sales Data for the Big Island of Hawaii
May 2014 - 70 Condos Sold - $332,500 Median Price
May 2013 - 49 Condos Sold - $291,500 Median Price

Source: Honolulu Star Advertiser, 6-6-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

801 South St. Building B Update

According to State Circuit Court Judge Karl Sakamoto, Downtown Capital LLC, the developer for 801 South St., has to halt all construction for Building B, but will not be forced to obtain a new development permit.  Judge Sakamoto ruled that two state agencies failed to follow state laws protecting historic places and burials and all construction will be stopped until an archaeological inventory survey is completed.  Owners of the neighboring building Royal Capital Plaza who filed the lawsuit had hoped that Judge Sakamoto would also require Downtown Capital LLC to start the entire process for obtaining a permit from scratch. However, Sakamoto's order added, "The court finds that plaintiff's request to invalidate (801 South B's permit) fails to show likelihood of success on the merits. Plaintiff has not sufficiently shown any other legal authority justifying or supporting the invalidation of the permit."

Source: Honolulu Star Advertiser, 6-5-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Hawaii Supreme Court to Hear Case Over Proposed Oceanfront Hotel and Condominium in Waikiki

Kyo-ya Hotels and Resorts announced in 2012 that they were planning to build a new oceanfront hotel and condominium tower next to the Moana Surfrider Hotel on Waikiki Beach. The plan called for Kyo-ya to demolish the existing eight-story Diamond Head Tower with a new 26-story hotel.  In February 2012, the city's Zoning Board of Appeals upheld a decision for the tower to built, despite the fact that it encroached on various ground and airspace setbacks that were prohibited under current zoning rules.  However, several environmental advocacy groups filed a lawsuit and argued that based upon current Waikiki Special District zoning rules, all hotels must be at least 100 feet from the shoreline.  The Diamond Head Tower of the Moana Surfrider was grandfathered in, since it was built before the 1976 zoning law was passed.

The Hawaii Supreme Court has just announced that they will be willing to hear the case.  Linda Paul, the attorney for the plaintiff, stated, "We are glad the Supreme Court has decided to hear the case. It's a case that asks an important and fundamental question: Does the mayor or his agents have unlimited power to grant exemptions of any magnitude from any ordinance?" Donna Wong, the executive director of Hawaii's Thousand Friends, added, "We think this could be a landmark decision because the state Supreme Court would be reviewing the ability of the city's planning director to make these kinds of decisions. We're hopeful because protection against encroachment is part of the Wai­kiki Special District guidelines, and there have been other Hawaii Supreme Court Cases that have upheld protection of public shorelines. When things are illegal, you have to keep challenging them. You can't just be blown over by the powers that be."

Source: Honolulu Star Advertiser, 6-4-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

Hilton Hawaiian Village Plans to Build Another Time-Share Tower

Blackstone Real Estate Group, which owns the Hilton Hawaiian Villages, has announced that they will be building a new 350-foot tall time-share tower.  The tower will cost approximately $415 million to construct and will be The Grand Islander by Hilton Grand Vacations Club. According to the press release, there will be a total of 418 units in one, two and three bedroom configurations.  Tyler Henritze, the senior managing director for Blackstone, stated, "Hawaii and Oahu, in particular, has been one of the best-performing lodging markets nationally over the last several years. We've had tremendous success partly as a function of the fact that it's been very challenging to build new hotel inventory. We are big believers in Hawaii and Wai­kiki, and we're glad to work in partnership with Hilton to develop a new time share to meet the demands of what seems to be an ever-increasing visitor market." 

Jerry Gibson, the area vice president of Hilton Hawaii, added, "This project will bring the number of accommodation units at Hilton Hawaiian Village to about 4,000. We're excited to see it get started. We've spent the last five years getting ready for this proj­ect by enhancing the rest of the property. By the time that The Grand Islander opens in the next couple of years, almost everything will be brand new."

Source: Honolulu Star Advertiser, 6-3-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com

State Bankruptcy Filings Down 27.5 Percent in May 2014

According to a report issued by the U.S. Bankruptcy Court, there were a total of 150 bankruptcy court cases filed in May 2014.  This represented a 27.5 percent decrease as compared to the 207 cases filed during the same month a year prior.  Blake Goodman, a bankruptcy attorney in Honolulu, commented, "This recovery that is in place has got some teeth to it, and it's especially being played out in Hawaii. The tourism numbers are very solid. The unemployment in Hawaii is among the lowest in the country (4.4 percent). You just have to look out any window on the town side and see 11 or so cranes in the area to see that the economy has been percolating. I've been doing this about 24 years in three different states, and I've never seen such a significant downturn in bankruptcy filings."

During there first five months of 2014, there have been 746 cases filed in Hawaii.  This is a 20.6 percent decrease as compared to the 940 cases that were filed during the first five months of 2013.

Source: Honolulu Star Advertiser, 6-3-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
www.myhawaiicondo.com
www.myhawaiidreamhome.com