Howard Hughes Requesting Clarification on Affordable Housing Rules in Kakaako

Under the current rules established by the Hawaii Community Development Authority, at least 20 percent of high-rise condominium units developed in Kakaako must be deemed "affordable" for residents earning no more than 140 percent of the annual median income of Honolulu.  This is approximately $94,000 for a single person or $134,000 for a family of four. However, developers may instead satisfy this 20 percent rule by offering rental units for residents earning no more than 100 percent of the median income for at least 15 years.  This is approximately $67,000 for a single person or $96,000 for a family of four.

The Howard Hughes Corp has submitted a petition to the Hawaii Community Development Authority asking the agency if they could offer rental units for residents earning no more than 100 percent of the median income for at least 30 years.  Their hope is that by doing so, they would have to make less than 20 percent of their total project affordable and allow for even more luxury condominiums. If this is allowed, Hughes Corp would change their planned affordable tower at 988 Halekauwila Street (formerly 404 Ward) from condos to rentals.

The 988 Halekauwila Tower was approved to have 424 condo units, of which 375 were going to qualify as affordable housing.  This equates to approximately 9 percent of the Hughes Corp's Ward Village's 4,300 units that are planned for 22 towers.

Source: Honolulu Star Advertiser, 8-29-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Update from Howard Hughes Company on Kakaako Condominiums

Under the Howard Hughes Corporation master-plan, a total of 4,000 residential units and 1 million sq ft of new retail and commercial space will be added to the Kakaako neighborhood in the next 15 years.  The first phase will be the building of three new condominium towers in the Ward Village area.  These towers are tentatively called 1140 Ala Moana Blvd, 1108 Auahi Street and 404 Ward Avenue and are ultra-luxury, luxury, and moderate income respectively.  Sales for these towers should begin in December 2013.

Chief Executive Officer for the Howard Hughes Corporation, David Weinreb, stated, "We certainly think it is a great time to be doing this. It's almost impossible to determine how long a market cycle will last but we certainly think at this point we are in the early innings of a robust and reasonably long-term period that you can see demand.  From extrapolating what One Ala Moana sold for using an average price of about $1,200 a square foot you can come up with a number that is certainly a big number. But will it be that number? It could be less or more. It's hard to say, but we're hopeful that demand will be robust. And we do think there is a market for people wanting to live in this kind of community."

Source: Honolulu Star Advertiser, 10-3-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Hughes Corp. Given Approval to Build First Three Towers in Kakaako

The Howard Hughes Corp has been given approval by the Hawaii Community Development Authority to build its first three high-rise towers in Kakaako. The HCDA had previously approved a tower located at 404 Ward Avenue, which will feature 424 moderately price units. Towers #2 and #3 will be at 1140 Ala Moana Blvd and 1108 Auahi Street respectively.  1140 Ala Moana Blvd (tentative name) will be a luxury condominium with a total of 177 units in the main tower and 10 townhouses facing Ala Moana Blvd.  1108 Auahi Street (tentative name) will have 312 units in the main tower, and 82 flats and townhouses in low-rise buildings.  All three towers are projected to begin sales by the end of this year.  Construction is expected to begin early 2014 and the towers are expected to be completed in 2016.

According to their master plan, the Hughes Corp has the rights to build 22 towers over the next 15 years. Hughes Corp has stated that in a future phase of the development, they may build three more towers on the block currently occupied by the Ward Warehouse.

Source: Honolulu Star Advertiser, 8-22-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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404 Ward Avenue Building Given Approval

In a 6-0 vote, the Hawaii Community Development Authority has given the Howard Hughes Corporation approval to build a moderate-priced condominium tower at 404 Ward Avenue.  This building, which has no official name yet, will have a total of 424 units.  Under its master plan, the Hughes Corp. would be required to make 20% of its 4,300 planned Kakaako residential units moderately priced. This means that only residents who earn between 100 percent to 140 percent of the median income for Honolulu county would be able to purchase those units. The 404 Ward Avenue property would satisfy approximately half of that requirement.  Howard Hughes senior vice president in Hawaii, David Striph, stated, "We are obviously very happy with the decision."

The Hughes Corp requested and was granted several variances for this project.  The first was a request to build the 404 Ward Avenue tower only 120 feet away from Kauhale Kakaako, an affordable rental building.  Zoning requirements previously required 300 feet in between the broad sides of a tower.  The second request was that the parking garage height would be raised to 75 feet to help create a smaller footprint of the building and to better accommodate ground-floor retail stores.  The Hawaii Community Development Authority has agreed to these items, provided that the Hughes Corp. includes a landscaped screen fronting the parking garage.

The Howard Hughes Corp has two additional towers being proposed to the Hawaii Community Development Authority at this time. One of them will be located on the site of the current Pier 1 Imports store at 1108 Auahi Street.  This building would have an estimated 318 units.  The second will be located at 1140 Ala Moana, across from the Ward movie theaters.  This building would have 177 units and will be marketed as an ultra-luxury building with spectacular, direct ocean views.  The HDCA will hold additional public hearings for these two project and will vote on their approval on August 21, 2013

Source: Honolulu Star Advertiser, 7-18-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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404 Ward Avenue Condominium Building Update

The Howard Hughes Corporation is planning to build a 400 foot tower at 404 Ward Avenue in Kakaako.  The building's official name has not been announced yet, but tentative plans call for a total of 424 units, out of which 375 units would be reserved for residents earning between 100 to 140 percent of Honolulu's median income.  This would satisfy a requirement set forth by the Hawaii Community Development Authority to create housing for the "moderate income" group, or those who earn too much to qualify for low-income housing but who do not make enough to pay for market-priced housing.  This translates to a maximum annual income of about $85,000 for a single person or approximately $120,000 for a family of four.  Unit prices would range from between $400,000 to $700,000 in 404 Ward Avenue.

Howard Hughes Corp is requesting a variance from the Hawaii Community Development Authority to build the tower at 404 Ward Avenue just 120 feet away from the existing Kauhale Kakaako tower.  The rule currently states that a new building's broad side should be 300 feet away from an existing building's broad side.  The Hughes Corp is also requesting that they be allowed to build the tower's garage to 75 feet instead of the current limit of 65 feet to maximize the building's small footprint.  The HDCA will review the permit applications for another month and will make their decision by July 17, 2013.

Source: Honolulu Star Advertiser, 6-20-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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Symphony Honolulu Condominium - Overview and Opinion

The following is an overview and opinion from Jeff Uyemura-Reyes, licensed REALTOR® in the state of Hawaii.  Jeff Uyemura-Reyes is the Broker-in-Charge and CEO of Global Executive Realty, LLC, a residential real estate firm in Honolulu.

The Symphony Honolulu is a new condominium project (888 Kapiolani Boulevard) that will be built on the north-west corner of Ward Avenue and Kapiolani Boulevard in Kakaako, directly across from the Neal Blaisdell Event Center.  The building features 1 bedroom, 2 bedroom and 3 bedroom units.  For the latest availability and price, click .

The property is being marketed as a luxury condominium with fantastic views in all directions.  While this is true, it should be noted that the Howard Hughes corporation is planning to build a new moderate-income condominium at 404 Ward Avenue, which would be approximately three or four blocks closer to the ocean, directly in front of the Symphony Honolulu.  The 404 Ward building will not block all of the Symphony's ocean views, but it would take away a section of it.  There is also discussion of the possibility of building a 700 foot tall tower over the Neal Blaisdell Event Center.  Please note that this is still only in the earliest stages of discussion and plans may change.

One item that potential buyers should be aware of, is that the Symphony Honolulu will be releasing 100 units later this summer or fall as "moderate-income" housing.  These units will be sold on a lottery basis to people who make less than 140% of the median income for the Honolulu neighborhood.  The buyers for the "moderate income" housing must not have had any primary interest in real property over the last three years and must commit to living in their Symphony Honolulu unit for five years after competition.  The "moderate income" units will cost less than their counterparts, but will also have not as nice fixtures in their units.

The sales team at the Symphony Honolulu were quick to point out that "moderate income" is not the same as "affordable housing".  For a single person, 140% median income is approximately $85,000 per year.  For a family of four, the maximum median income is approximately $115,000 per year.

An interested Buyer would have to put down 5% of the purchase price with their initial offer.  They would then have 30 days to review all of developer's public report.  Upon acceptance of the public report, the Buyer would have to put down an additional 5% (10% total).  This money becomes firm and binding.  The Buyer would have to place a final 5% down (15% total) on November 1, 2013.  The balance of the down payment can be made when the project is completed in the beginning of 2016.

My personal opinion on the building is that it is in an excellent location and priced fairly given today's improving real estate market conditions.  A potential Buyer should be made aware of all the other condominiums being built in the Kakaako neighborhood and understand how these buildings may affect your view from the Symphony Honolulu.  Finally, a Buyer needs to feel comfortable with the fact that this building will have both luxury condominium units and "moderate income" units in the same tower.

Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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Economists Believe that Demand Will Be There for All the New Condominiums

A total of 5,000 new condominium units and 1,000 rental units have been planned to be developed in Oahu’s urban core over the next decade. While some people are questioning if there will be enough demand for these new buildings, many local economists and real estate experts believe that the increased supply won’t even be noticed. Paul Brewbaker, the chief economist of TZ Economics, commented, “It’s not a question of will there be enough buyers. The problem is, will there be enough condos?”

Below is a list of the planned buildings:

Waihonua, located on Queen Street, is being developed by Alexander & Baldwin Inc. Currently 321 of their 341 units have been sold. The building is scheduled to be completed in March 2015.

One Ala Moana, is located above the Nordstrom parking garage at the Ala Moana Center. The 210 units have been sold out. The MacNaughton Group and the Kobayashi Group are the local developers in partnership with the Howard Hughes Corp.

801 South Street was marketed as moderately priced building. All 635 units have been sold through a lottery drawing. At that time 300 lottery entrants did not secure a unit. Marshall Hung is the developer of this building.

Symphony Honolulu is located on the North West corner of Ward Avenue and Kapiolani Boulevard. Sales are expected to begin this summer.

404 Ward Avenue is the address of a new moderately priced condominium tower that the Howard Hughes Corporation will be building. Prices have not been specified as of yet. Sales are expected to begin this year. The building will have approximately 400 units.

1108 Auahi Street is the address of a new mid-luxury condominium tower that the Howard Hughes Corporation will be building. Prices have not been specified as of yet. Sales are expected to begin this year. The building will have approximately 300 units.

1140 Ala Moana is the address of a new luxury condominium tower that the Howard Hughes Corporation will be building. Prices have not been specified as of yet. Sales are expected to begin this year. The building will have approximately 200 units.

The Collection is a project being done by Alexander & Baldwin. Located at the site of the former CompUSA store on the corner of South Street and Ala Moana Blvd, the project will include 466 units including several townhouses. Sales are expect to begin later this summer.

803 Waimanu is a project being developed by Franco Mola and will be located on Waimanu Street near Cooke Street. The project will feature 217 units. Sales are expect to begin later this summer.

Aloha Kai is a planned project on Atkinson Drive on the property that is currently being occupied by the Central YMCA property. The developer is still seeking a city zoning change. The building would have 128 units.

Halekauwila Place is a rental project with 204 units being developed by Standord Carr.

690 Pohukaina is also a rental project with 804 units. The project is being planned by Ohio-based Forest City Enterprises Inc.

Source: Honolulu Star Advertiser, 6-3-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Howard Hughes Corporation Announces Three More Condominiums in Kakaako Neighborhood

The Howard Hughes Corporation has announced that they will be building three new condominium towers in Kakaako, a total of 900 units, at the same time. According to the company’s master plan, this will be part of the first phase of a total 22 towers that we be built over the next 15 years in Kakaako. The Howard Hughes Corp. is planning on spending a total of $7.5 billion to build a total of up to 22 towers with up to 4,300 residential units on the 60-acre parcel. The company also plans to double the amount of retail space in the neighborhood and add additional restaurants and entertainment options. Senior vice president in Hawaii for the Howard Hughes Corp., David Striph, stated, “The pent-up demand, we think, is great.”

Tower 1 will be located on Ward Avenue between Halekauwila and Ilaniwai streets. This building will be moderately priced and have approximately 415 units. Tower 2 will be located directly across on the ocean side of the Ward theater complex. This building would have unobstructed views of Ala Moana Beach Park and Kewalo Basin and will have have approximately 200 units. Tower 2 will be the most luxurious of these three towers. Finally, Tower 3 will be built where the Pier 1 Imports store is currently located. This tower will have about 300 units and will be priced somewhere in between Tower 1 and Tower 2.

Provided that the Hawaii Community Development Authority, the state agency overseeing the development of Kakaako, gives the necessary approvals, the there new towers will break ground in 2014 and be completed approximately 2 years later in 2016.

Source: Honolulu Star Advertiser, 5-22-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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Howard Hughes Corporation to Announce Three New Residential High Rises in Kakaako

The Howard Hughes Corporation will be announcing shortly plans to build three new residential high-rise condominiums in Kakaako. Hughes Corp owns approximately 60-acres of land in the Ward Centers area in Kakaako. They have just recently applied for building permits from the Hawaii Community Development Authority, which is the state agency regulating development in the area. The Hughes Corp has an approved master plan which allows their company to build up to 4,300 residential units over the next 15 years. According to past press release, the master plan includes building 22 high-rise towers and doubling the existing retail, dining and entertainment venues that currently exist at the Ward Centers. It is estimated that it would cost the Hughes Corp approximately $7.5 billion to complete this massive undertaking.

Tentatively, it appears that these three towers will be located on the parking lot on the ocean side directly across from the Ward theater complex, on the site where the Pier 1 Imports currently occupies, and on an area on Ward Avenue currently occupied by the Kanpai Bar and Grill.

Source: Honolulu Star Advertiser, 5-21-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
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