Park Lane Ala Moana Begins Owner Occupant Sales

Park Lane Ala Moana has announced that they have begun their owner occupant sales. Located on ocean side of Ala Moana Center, the property will consist of seven six-story buildings with a total of 215 units, ranging from 850 sq ft one-bedroom residents to 6,000 sq ft five bedroom penthouses.  Prices for the one-bedrooms start at $1.19 million and will go up to $28 million for a penthouse unit.  Half of the units will be restricted to owner-occupants while the others can be purchased by investors.  The investor sales began in November and most of those units have been sold.  The first phase of the project is expected to be completed late 2016 and the final phase by the end of 2017.

Source: Honolulu Star Advertiser, 1-10-2015, www.staradvertiser.com
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Foodland to Close Its Ala Moana Center Location

Foodland Super Market Ltd. has announced that they will be closing their Ala Moana Center location after 55 years of serving that neighborhood.  Officials with the company cited higher rents as the reason why they would not be renewing their lease, but has promised to find all of the store's employees positions at other Foodland locations on Oahu.  Jenai Wall, the chairwoman and CEO of Foodland, stated, "Our company has operated a store at Ala Moana since statehood so the decision to leave the center after all these years was not an easy one, especially because of the impact the closing will have on our loyal employees and customers. Yet, while it truly saddens us to say 'goodbye' to Ala Moana, the challenges and costs of operating a store in this location today made it impossible for us to justify staying."

Francis Cofran, the general manager of Ala Moana Center, commented, "Ala Moana Center has enjoyed its long relationship with Foodland. As one of the original tenants that opened in 1959 with Ala Moana Center, Foodland will always remain a special part of the center's history. We appreciate the 55 years of partnership we have shared with Foodland and its employees and wish the company continued success serving Hawaii."

Source: Honolulu Star Advertiser, 11-6-2014, www.staradvertiser.com
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Walgreens Considering Selling Their Ala Moana Location

Walgreens Co. has announced that they are considering selling their Ala Moana store location, which is on the corner of Kapiolani Boulevard and Keeaumoku Street across from the Ala Moana Center.  Walgreens has just built an adjacent parking structure to this location which is designed to support a 20-story tower. Colliers International, a commercial real estate firm, has been retained to market the property.  Colliers marketing material stated, "The site provides for various redevelopment options. The demand and prices for new high-rise luxury residential condos in the urban core substantiate the construction costs."  An asking price has not been released to the public.

Source: Honolulu Star Advertiser, 11-4-2014, www.staradvertiser.com
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Concern Mounts on Where the Waikiki Homeless Will Go

At the start of this year, Honolulu officials estimated that there were 560 chronically homeless people living on Oahu, out of which approximately 30 percent, or 170 people, lived in Waikiki.  Last month, the Honolulu Police Department begun enforcing a new law which prohibits lying and sitting on Waikiki's public sidewalks.  It is estimated that about 50 to 60 percent of the homeless population in Waikiki has moved away from Waikiki.  However, there has been conflicting information as to where the homeless have gone or plan to relocate to.

According to Ron Lockwood, the chairman of the McCully-Moiliili Neighborhood Board, there appears to be an increase of homeless camped out in his board's jurisdiction. Lockwood stated that the homeless are sleeping on side streets to avoid being harassed by law enforcement officers.  Neighborhood boards in Ala Moana, Kakaako, and Chinatown are also concerned if they would see an surge in homeless on their streets.  Mayor Kirk Caldwell has stated that he is committed to its "Housing First" Program which would help to provide permanent housing to those deemed chronically homeless.  However, while the funds are in place to build these units, they are still months away from completion.

Source: Honolulu Star Advertiser, 10-12-2014, www.staradvertiser.com
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Nighttime Construction Approved for Ala Moana Center

The Hawaiian Dredging Construction Company has received a noise variance from the state of Hawaii to allow for some nighttime construction to begin at the Ala Moana Center. Their application stated that allowing night work would be in the public's interest, given the positive economic impact generated by the shopping mall.  The application stated, "The project will add more retail space and commensurate parking space to the most popular shopping attraction in the state of Hawaii, thus contributing to and sustaining and enhancing the local economy." When completed, the expansion on the mall's Ewa end will add an additional 650,000 sq ft of new retail space. The $572 million expansion project broke ground about a year ago and is expected to be completed by 2015.

However, residents living in 1350 Ala Moana and Uraku Towers, which both face the construction site, are very unhappy with the state's decision and had hoped that work could be completed during normal daylight hours., which is right across Piikoi Street from the mall, are very unhappy with the news.  Kaethe Kauffman, who resides in Uraku, stated, "It is unethical for their aggressive business plan to be done at the expense of significant physical suffering of nearby residents, which will happen with all-night work."

Source: Honolulu Star Advertiser, 8-2-2014, www.staradvertiser.com
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Hennes & Mauritz to Open Stores in Kapolei and Ala Moana

Hennes & Mauritz, also known as H&M, has announced that they will be building a second Hawaii location in Ka Makana Alii, the new regional mall in Kapolei, as would eventually like to build a third location in Ala Moana Center.  Ka Makana Alii is scheduled to open its first phase in 2016 and developer DeBartolo Development is excited to have H&M as one of their anchor tenants. Edward Kobel, the president and COO for DeBartolo stated, "H&M will provide easy access to contemporary fashion for area families, who will enjoy the convenience of having such a sought-after brand just minutes away."

H&M's first Hawaii location was built in the Waikiki Business Plaza earlier this year.  The store is reportedly doing very well.

Source: Honolulu Star Advertiser, 7-30-2014, www.staradvertiser.com
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New Walgreens to Open in February 2015 on Keeaumoku Street in Ala Moana

Walgreens has announced that they will be opening a new store on Keeamoku Street in February 2015, but it is slated to be unlike any drugstore that Hawaii has ever seen. According to company spokesmen, this location will be a "Well Experience" flagship store which will have everything from fresh handmade sushi, poke bowls, bentos, a coffee and pastry counter, a juice bar, and self-serve frozen yogurt.   Gregory Wasson, Walgreen's president and CEO stated, "We are stepping out of the traditional drugstore format and creating something unique, new and special."

The new store will be just over 20,000 sq ft in size and will include a LOOK Boutique cosmetics department offering manicures.  The two story building has an additional three levels of parking over it and was designed to support a 20-story residential tower above that.

Source: Honolulu Star Advertiser, 7-17-2014, www.staradvertiser.com
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Update on The Waikiki Landing

The Waikiki Landing is a partnership between the state of Hawaii and Honey Bee USA INC. to redevelop the Ala Wai Small Boat Harbor.  However, Honey Bee has just announced that they have lost their major funder for the project, leaving them searching for a new source of financing to meet their contractual obligations with the state. Honey Bee is currently working with four different groups to secure $24 million of funding, and hopes to do so by the middle of this month.  Honey Bee has been paying the state approximately $37,000 per month in land and water rent since January 2014.  However, since they were unable to secure financing, they have missed their June deadline when rent increased to above $70,000 per month.When completed, The Waikiki Landing should have a new boat repair facility and fuel dock combined with restaurants, entertainment venues, wedding chapels and space for the U.S. National Kayak Team.

Debo­rah Ward, the spokeswoman for the Department of Land and Natural Resources stated that they would like to work with Honey Bee to make this project happen, but if Honey Bee is unable to comply with the terms, the lease could be terminated and a new proposal could take its place.  Ward stated, "If another (request for proposal) were to be issued, actual development could occur in a much shorter time period since the land use entitlements and approvals have already been obtained, the property has been cleared and graded, environmental issues have been addressed, foundation testing has been done and the parcels have been legally subdivided." Ward noted that Honey Bee has already paid the state more than $865,000 in rent and development fees and has cleared the property, removed contaminated soiled, razed a dilapidated boatyard building, secured various land use entitlements and approvals, and obtained city permits. Ward added, "All of this was done at Honey Bee's expense and at no cost to DLNR, the state, or the taxpayers."

Jeff Merz, a member of the Waikiki Neighborhood Board commented, "People hated the project at first, but they made changes and once the company started clearing land, the community seemed to accept it. The area is run-down and there's been crime. People understood that we needed something to energize the location. Now to be told that it could stay a big empty construction site for a longer period, the community won't like that."

Source: Honolulu Star Advertiser, 7-2-2014, www.staradvertiser.com
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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
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Six More Residential Towers in Kakaako Seeking Permits By End of Year

Developers are requesting approval from the Honolulu City Council and the Hawaii Community Development Authority to create a total of six new residential towers in Kakaako.  Howard Hughes Corp is asking to build a total of four new towers; two which would replace most of the Ward Warehouse along Ala Moana Boulevard, one which would be west of the Ward Entertainment Center theater, and the final tower would be next to the recently announced Whole Foods, just north of the theater.  Kamehameha Schools is working with local development firm The Kobayashi Group to build a 265-unit tower on a 3.5-acre site on Ala Moana Boulevard, currently occupied by Cutter Nissan.  The final tower (6th) would be built by SamKoo Development Company and would be located at 1391 Kapiolani Blvd, next to Ala Moana Center.  This tower would be right next to the Ala Moana rail station terminal.

Real estate experts believe that the reason why developers are pushing to secure approval to build so quickly is because this is an election year.

Source: Honolulu Star Advertiser, 5-29-2014, 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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Waikiki Landing Construction to Begin in May 2014

Developer Honey Bee USA has announced that their Waikiki Landing project, located at the Ala Wai Small Boat Harbor, will begin construction on May 2014.  The $31 million complex will feature 44,153 sq feet of retail space and a 17,000 sq ft boat repair dock facility.  Among the tenants that have been announced are a fine-dining steak house called Luna Kai, a Japanese owned seafood restaurant called Pier Thirty Group, a boat repair and marine supply store, and a local brewery company.  Two wedding companies will also have locations at Waikiki Landing, and there will be numerous activity providers such as Roberts Hawaii and Hawaiian Surf Adventures.

Source: Honolulu Star Advertiser, 3-17-2014, www.staradvertiser.com
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Nordstrom at Ala Moana Center to Move to Ewa Side

Ala Moana Center is currently undergoing a $572.4 million redevelopment of the Ewa (West towards the Ewa Plains) side of the mall.  Nordstrom Inc, who currently has a 211,000 sq ft location on the Mauka (mountain) side of the mall, has announced that they will be moving to a new 186,000 sq ft location in the Ewa end in the spring of 2016. Brooke White, a Nordstrom spokeswoman, stated that about every 10 years Nordstrom remodels their stores.  White commented, "We love our location there and business has been good, and that's why we're wanting to move. It does quite well for us. Our investment here in moving the store is a signal that we believe in our business in Hawaii. It's basically a wash for us to move with the kind of significant remodel that we do. When we looked at the cost of remodeling versus the cost of investing in a new building and being able to design exactly the way we wanted with our newest design concept, it was cost-effective to make the move now." Nordstrom stated that their 400 employees will continue at their new location.

Source: Honolulu Star Advertiser, 2-4-2014, www.staradvertiser.com
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Ala Moana Center to Offer More Luxury Condominium Units

General Growth Properties has announced that they would like to work once again with local developers, the MacNaughton Group and the Kobayashi Group, to build another ultra-luxury condominium at Ala Moana Center.  According to General Growth, they would like to build approximately 200 units in a series of mid-rise buildings along Ala Moana Boulevard between Piikoi Street and the Neiman Marcus store.  The buildings would be be 8 stories tall and would sit on the second level of the parking structure, well within the area's high limit.  As a result, no variance would be needed by the city to build this condominium complex.

According to tentative plans, lap pools, private gardens, indoor/outdoor kitchens and living spaces up to 6,000 sq ft in size would be just some of the features being offered in this project.  The developers are describing this as a "discreet sanctuary" that will combine single-family home, resort and condo living in urban Honolulu. Ian MacNaughton, a principal with the development team, stated, "This distinct concept will make a significant statement in the landscape of Hawaii's residential development business.  The community will establish a new global standard for luxury residential living without compromising any of Hawaii's understated authenticity."

General Growth had previously teamed up with the MacNaughton Group and the Kobayashi Group to build ONE Ala Moana, a ultra luxury condominium tower that will be completed in late 2014 above the Nordstrom parking lot.  All 206 units at ONE Ala Moana have already been sold, with prices ranging from $500,000 for a 1 bedroom to $10 million for the Penthouse.

Source: Honolulu Star Advertiser, 12-15-2013, www.staradvertiser.com
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Ala Moana Center's Parking Nightmare

Ala Moana Center is currently undergoing a $572 million expansion project which will take approximately two years to complete. Prior to the expansion, Ala Moana Center had approximately 10,000 parking stalls for their guests, but that number was reduced by 2,000 stalls due to the project.  In preparation for the holiday season, the mall will be renting out the parking structure of a neighboring office building on weekends for their employees as well as giving free bus passes to workers who agree not to park at the mall in December.  Senior marketing manager at Ala Moana Center, Scott Creel, stated, "What we are hoping is that our customers will see that we're making every effort possible to accommodate for their visit. There's a lot of different moving parts, but we're hopeful that we'll all share in the positive sides of what will come from this. Construction in this particular case, we think, is a good thing, and it will be positive for the state, our residents and customers. We greatly appreciate our customers' patience."

Source: Honolulu Star Advertiser, 11-22-2013, www.staradvertiser.com
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State Representative Has Controversial Approach Towards Homeless People's Shopping Carts

Tom Brower, the State Representative for the Waikiki and Ala Moana district has decided to personally do something to reduce the number of stolen or abandoned shopping carts that homeless people use in his district.  If Brower finds an unattended cart, he first checks to see if there is a store logo on it.  If there is one, he returns the cart to its rightful owner, the store.  If not, Brower pounds the shopping cart with a sledgehammer and drops it off at a recycling center or leaves it for the city's bulk pick up service to dispose of it.  Brower stated, "Reactions have been about 70 percent in favor and about 30 percent against. The people that say it's not OK are not the ones that live in this neighborhood. I don't have anything against the homeless, but I'm working on cleaning up the neighborhood and one of the biggest eyesores are the stolen and abandoned shopping carts. I feel comfortable with the legality. The only thing that can stop me is the police, and the indication that I got from them at the Waikiki Neighborhood Board meeting is that they wouldn't have a reason to stop me. Some people are criticizing me, but they are kind of disregarding that these carts were stolen in the first place. They are getting mad at me for stealing them back."

However, not everyone agrees with Brower's tactics.  Connie Mitchell, the director for the Institute for Human Services, cautioned, "What would your response be if you saw someone coming at you with a sledgehammer? If people don't feel that they are being respected, it's only a matter of time before they react." Marya Grambs, the executive director of Mental Health America of Hawaii, added, "He's terrorizing people, and he's modeling that it's OK to commit violence. I cried when I read about what he's doing. We need to have compassion. Every person that is on the street is there because something bad already happened to them."

Source: Honolulu Star Advertiser, 11-19-2013, www.staradvertiser.com
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Ala Moana Center Plans to Start Overnight Construction

The Ala Moana Center has requested a noise variance from the Department of Health to allow construction 24 hours a day, six days a week, until September 2015, to complete a $572 million redevelopment of the Ewa end of the shopping center.  However, this has infuriated condominium owners living at 1350 Ala Moana, which is right across the street from the shopping mall.  A total of 353 residents at 1350 Ala Moana are petitioning the Department of Health to reject the variance request.  Homeowner Patrick Brent, stated, "They're making noise all day long here five days a week.  In the last few weeks we've been woken up at 5 in the morning by helicopters dropping machinery on the roof of the shopping center. The reason they do it at 5 or 6 in the morning is because they don't want to slow down revenue during the day. We got a real David-and-Goliath thing going on here."

Ala Moana Center issued a statement saying, "The intent of the noise variance permit is to allow for specific projects to be completed during off-business hours only, nevertheless we will attempt to limit construction activities that can create noise at night to the minimum necessary.  Prior to resubmitting our noise variance application, we plan on meeting again with our neighbors in order to advise (them) of the revised plans, which will also serve to continue our ongoing communication efforts. In the meantime, we welcome all feedback and appreciate the community's patience and understanding as we work to complete this project."

Source: Honolulu Star Advertiser, 10-19-2013, www.staradvertiser.com
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Aloha Kai Condominium Given Approval by Honolulu City Council

The Aloha Kai condominium tower has been given final approval for its construction by the Honolulu City Council. The 350 foot tall tower will be built on Atkinson Drive, across the street from the Ala Moana Center, on the site if the Central YMCA.  Originally, the zoning only allowed for a 150 ft tall building with 120 units, but a zoning change by the city council allowed for the taller building with a total of 128 units.  The Aloha Kai Development has stated that a new YMCA will be built in from of the Aloha Kai tower.

Source: Honolulu Star Advertiser, 10-11-2013, www.staradvertiser.com
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Aloha Kai Tower Approved By Zoning and Planning Committee

The Honolulu City Council's Zoning and Planning Committee has given their approval to build the Aloha Kai condominium tower on the site of the Atkinson Drive YMCA.  Previously, there was a height restriction of 150 feet and a limit of 120 units to be build on that site, but the Zoning and Planning Committee has given their approval for Aloha Kai to be 350 feet tall with 128 units.  The developer argued successfully that a taller building would allow for it to be slimmer and more aesthetically pleasing.

However, many neighbors are concerned about the increased traffic that Aloha Kai will create for an already busy Atkinson drive.  Furthermore, the taller tower will create a loss of view planes for units in the Sunset Tower and possibly for the Yacht Harbor Tower buildings.  Nearby residents are requesting that the City Council also obtain an independent traffic study, and not simply accept the one that was paid for by the developer, before final rezoning is approved.  The matter will be brought before the entire Honolulu City Council on October 9 for a final vote.

Source: Honolulu Star Advertiser, 9-27-2013, www.staradvertiser.com
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Update on the Ala Moana Center's Renovation

General Growth Properties, the owner of Ala Moana Center, is spending a total of $572.4 million to completely redevelop the Ewa (West) end of the state's largest shopping mall. General Growth had previously announced that Bloomingdale's would be one of the main anchor tenants of this redevelopment.  A second anchor tenant will be disclosed shortly, once a deal has been made.  Vice president of development for General Growth, David Cuthill stated, “Ala Moana has experienced a number of significant expansions since it first came into existence during statehood in 1959.  Ala Moana has consistently shown it can absorb expansion projects. Right now the economy is tracking well, and we are confident that this will be a great success.”

The massive project is expected to add about 300,000 sq ft of retail space to the Ala Moana Center as well as 1,000 new parking stalls.  Experts believe that the construction alone would create an additional 1,000 jobs.  Ala Moana Center's senior marketing manager, Scott Creel, stated, "Everything we’re doing is going to be brand new from the ground up. There’s going to be a variety of stores, new brands that aren’t currently in Hawaii.  We’ve got a list of tenants that would like to be here today, and we cannot accommodate them because we physically don’t have the space.”  Creel added that when all of the construction has been completed, Ala Moana Center will expand to have approximately 2.4 million sq ft of retail space.  The mall currently attracts 42 million shoppers each year.

Source: Honolulu Star Advertiser, 8-7-2013, www.staradvertiser.com
Posted by Jeff Uyemura-Reyes, Broker-in-Charge, REALTOR®
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