Construction Resumes for Building B of 801 South Street Project

Circuit Judge Karl Sakamoto has lifted his injunction for Building B of the 801 South Street Project after the developer had corrected what the judge ruled was a violation of state historic preservation law.  Developer Downtown Capital LLC was required to conduct an archaeological survey of the site and found absolutely no Native Hawaiian burials. As a result, construction will resume immediately after the almost six month long break while the study was being done and official approval was given by the State Historic Preservation Division of the Department of Land and Natural Resources. Ryan Harada, a principal with Downtown Capital LLC, stated, "The development team is very happy to move the project forward. We have a lot of buyers who have been very patient. We're pleased with the judge's decision."

Residents living in the neighboring Royal Capitol Plaza are very unhappy with this decision to allow Building B to be built.  They had filed several lawsuits against the developer, but Judge Sakamoto found that only one of them, the developer's lack of obtaining an archaeological survey, merited a halt in construction.  Now that has been completed, the judge felt there was no reason to delay construction any further.

Source: Honolulu Star Advertiser, 11-13-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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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
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Judge Halts Construction for 801 South Street Building B

Just days after developer Downtown Capital LLC announced that all 410 units in its second tower, Building B, of the 801 South Street project had been sold, Circuit Court Judge Karl Sakamoto ruled that all work must stop due to the fact that two state agencies failed to follow state laws protecting historic places and burials. Sakamoto's verbal decision was in response to a lawsuit that was filed in March 2014 by the owners of the Royal Capitol Plaza, a neighboring building, whose views would be significantly impacted by the creation of Building B. Carl Varady, the attorney for the plaintiff, stated that he believes that Sakamoto will issue a written order that would invalidate the Hawaii Community Development Authority's permit for 801 South B.  If this happens, the HCDA would be required to hold new public hearings and issue a new decision for the project to obtain approval.

Source: Honolulu Star Advertiser, 5-31-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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801 South Street - Building B Has Sold Old

Downtown Capital LLC has announced that the second tower, Building B, of the 801 South Street has sold out. The developer stated that all 410 units have been purchased by local residents and 90 percent of them have stated that they intend to live in their unit.  801 South Street is a "work force" housing project, and requires that at least 75 percent of the units are sold to buyers 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 $120,720 for a family of four.

Units in Building B ranged from $352,000 for a one-bedroom unit to $699,000 for a three-bedroom unit. Construction of the second tower is expected to begin by the end of this year and will take about two year to complete.  Building A is already under construction.

Source: Honolulu Star Advertiser, 5-29-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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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
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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801 South Street - 500 Buyers in Lottery for Second Tower

According to Downtown Capital LLC, the developer for the 801 South Street condominium, there a total of 500 prospective buyers who have signed up for the lottery to purchase a unit in the second tower.  Plans for Tower B shows that there will be a total of 410 units in one bedroom, two bedroom and three bedroom configurations, priced between $352,000 and $699,000.  Both towers are being developed as "workforce housing" which means that they are reserved for households earning no more than 140 percent of Honolulu's median 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 stated that they will be reserving at least 75 percent of the units in Tower B for "work force housing" buyers.  Construction is expected to begin by the end of this summer.

Source: Honolulu Star Advertiser, 3-29-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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801 South Street - Legal Update

The association of apartment owners at Royal Capital Plaza, have filed a lawsuit against the Hawaii Community Development Authority, and are hoping that a judge prevents any construction of the second tower at 801 South Street until an appeal to the permit issued by the HCDA is heard.  Tower B of 801 South Street would significantly impact the views of some of the residents living in Royal Capital Plaza.  According to the suit, the HCDA issued the permit unlawfully.  Officials of the Hawaii Community Development Authority stated that the permit approval complied with all of their rules.

Source: Honolulu Star Advertiser, 3-29-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Sales for 801 South St Building B to Begin

Developer Downtown Capital LLC has announced that that they will beginning sales for the second tower of their 801 South St. project.  According to their press release, the sales office will open on Saturday, March 15, 2014 and prospective buyers will be selected by lottery. There will be a total of two lotteries.  The first lottery will be on March 29, and interested parties must submit their names and information by March 28. The second lottery would be held on April 12. For the first 60 days, only buyers earning no more than 140 percent of Honolulu's median income would be able to purchase at 801 South Street Building B.  This equates to $84,574 for a single person, $96,656 for a couple, or $120,820 for a family of four.  However, after 60 days, if there are still units available, buyers and investors regardless of income are allowed to purchase units.

Building B will feature a total of 410 units with prices ranging from $352,000 to $699,000 for one-bedroom, two-bedroom and three-bedroom units.  The units in Building B will be larger and priced slightly higher than the units in Building A, which featured studios, one-bedroom and two-bedroom sizes priced between $250,000 to $500,000.  However, they still fall under the Hawaii Community Development Authority's definition of "workforce housing".  Marshall Hung, the principal of Downtown Capital, stated, "We have grown increasingly concerned that too much housing now being built can only be purchased by upper-income households and by wealthy out-of-state individuals and that very few new projects are being built for the working middle-class families in our community."

Not everyone is happy with these two towers being built at 801 South Street.  Residents from Royal Capital Plaza, a neighboring condominium tower, filed a lawsuit stating that Building B is too close to their property and the prices are too high to be considered affordable.

Construction for Tower B is expected to begin this summer.

Source: Honolulu Star Advertiser, 3-14-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
Global Executive Realty, LLC
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Legal Petition Against 801 South Street's Second Phase

A legal petition against the Hawaii Community Development Authority has been filed in state court, and is asking that they invalidate a development permit for the second phase of the 801 South Street project. According to the AOAO of neighboring building Royal Capital Plaza, which filed the petition, the HCDA violated numerous state laws and agency rules.  The petition states, "The actions of HCDA in approving the Phase II permit were clearly erroneous, arbitrary and capricious, and characterized by both an abuse of discretion and a clearly unwarranted exercise of discretion."

801 South Street is being constructed by Downtown Capital, which is owned by local affordable housing developer Marshall Hung.  Under the current proposal, two towers (Tower A and Tower B) would be built. Tower A is already under construction and will have a total of 635 units in its 400 foot residential tower. Tower B, which has been approved by the Hawaii Community Development Authority, will also be 400 feet tall and would have another 318 units.

Source: Honolulu Star Advertiser, 1-17-2014, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Principal Broker, REALTOR®
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Update on 801 South Street - Second Tower Approved

The Hawaii Community Development Authority has given their approval to allow Downtown Capital LLC to build a second tower at their 801 South Street project.  "Tower B" will be a workforce housing condominium tower and will have a total of 410 units ranging in price from $329,400 for a one bedroom to $692,300 for a three bedroom.  Tower A had a total of 635 units and ranged in price from $250,000 for a studio to $500,000 for a two bedroom.  Ryan Harada, one of the principal for Downtown Capital LLC, stated, "We look forward to bringing the same type of housing for people that we did in phase one."

Source: Honolulu Star Advertiser, 12-5-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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Update on 801 South Street and Royal Capital Plaza

Residents of the Royal Capital Plaza condominium tower have filed a protest with the Hawaii Community Development Authority to stop the building of a second tower at 801 South Street.  The first tower at 801 South Street will have a total of 635 units and has already been approved for construction.  However, developer Downtown Capital LLC has requested the rights to build a second 410-unit tower.  Downtown Capital LLC argues that there is a need to have moderate income housing in the area and believes that certain variances should be given by the HCDA since they are filling that need.  Opponents of the project argue that the second tower of 801 South Street would block views, create too high of a population density in that area and overwhelm the sewer and water infrastructure currently in place.

Aside from the residents living in Royal Capital Plaza, members of the Historic Hawaii Foundation also oppose the building of the second tower at 801 South Street.  If Downtown Capital LLC was allowed to build tower 2, it would mean the demolition of about half of the Honolulu Advertiser newspaper building, a historic building constructed in 1929.  Downtown Capital LLC has stated that they would like to build a 10-story parking garage in its location.

The Hawaii Community Development Authority is scheduled to meet towards the end of this year.  A second public hearing is scheduled for December 4, 2013.

Source: Honolulu Star Advertiser, 10-3-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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Neighbors Protest Second Tower for 801 South Street

A group of residents living in Royal Capital Plaza in Kakaako, are protesting the building of a second tower at 801 South Street. The Hawaii Community Development Authority, which is a state agency tasked with regulating the development of Kakaako, has already given approval for developer Downtown Capitol LLC to build the first tower at 801 South Street, but is still deciding if a second tower would be allowed.  Under the proposal, there will be 635-units in the first tower, and an additional 410-units built in the second tower. Tentatively units in the first tower will be priced between $250,000 for a studio to $550,000 for a two-bedroom.  The second tower would have one bedrooms starting at $360,000 to three bedrooms at around $690,000.

Source: Honolulu Star Advertiser, 9-29-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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Plans to Build Second Workforce Housing Tower in Kakaako

Developer Marshall Hung of Downtown Capital LLC, has put in a request with the state to build a second workforce housing tower on a 3.7 acre site located on the corner of South Street and Kapiolani Boulevard. Construction for the first tower, named 801 South Street, has already started after the vast majority of the 635 units have been put into escrow.  801 South Street had a total of 635 units in studio, one bedroom and two bedroom configurations.  The second tower that is being proposed would have an additional 410 units, and would feature slightly larger units, one to three bedrooms, and would be priced between $360,000 to $700,000 Fee Simple.

However, the Historic Hawaii Foundation has raised a significant objection to the construction of the second tower.  The historic News Building currently sits on the site, and approximately half of the building would have to be demolished in order to build a 788-stall parking garage.  Executive director for the Historic Hawaii Foundation, Kiersten Faulkner, stated, “It’s an incredibly significant historical and architectural treasure in the center of the civic area.”  Marshall Hung responded by noting that the News Building is not on any state or federal registries of historic building, but also added, "“We’re sensitive to the community.”

Source: Honolulu Star Advertiser, 8-25-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
Global Executive Realty, LLC
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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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Kakaako Real Estate – 801 South Street Condo Sells Out in Lottery

The 801 South Street Condominium effectively sold out during their first lottery, with almost 700 interested parties signing up for units.  The 3.7 acre property, located next to Kapiolani Boulevard and South street, was previously the home to the Honolulu Advertiser and Star-Bulletin newspapers.  The developer, Downtown Capital, had required that all participants in the initial lottery to be of moderate income, which means that they could earn no more an 140 percent of Honolulu’s median annual income.  Buyers would be required to be owner occupants for at least 1 year.

Prices ranged from $253,200 for a studio to $501,300 for a two-bedroom unit.  The units will be relatively small, ranging from 384 sq ft for a studio to 816 sq ft for a 2 bedroom unit.  In an effort to keep monthly maintenance fees low, the building will have very few amenities including no swimming pool and no gym.  The building is expected to be completed in 2015.

Source: Honolulu Star Advertiser, 3-27-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
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801 South Street in Kakaako Approved

The Hawaii Community Development Authority has given their approval to create a 46 story tower at 801 South Street in Kakaako.  This $200 million project is expected to create a total of 635 affordable units priced between $250,000 for a studio and $550,000 for a two-bedroom unit.  If there is enough demand, a second tower with an additional 400 units could be build for another $200 million.  Sales and construction of the first tower is expected to begin in the middle of 2013 and the project should be ready for occupancy in 2015.

In order to qualify to purchase in this building, a household would have to earn less then $82,700 for a single person and $115,780 for a family of four.  This designates the property as “workforce housing”.  Developer Marshall Hung announced that he would use a lottery system for all eligible buyers.  Hung added, ”With the average price of a single family home on Oahu at $600,000 and climbing fast, coupled with a stagnant household median income, we believe our project will give local residents priced out of the current market an opportunity to purchase or rent a high-quality condominium in urban Honolulu they can afford.”

Source: Honolulu Star Advertiser, 12-6-2012, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, Realtor®
Global Executive Realty, LLC
www.myhawaiihomesearch.com
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