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
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