Nordic PCL to Build $500M M-U Project in Downtown Honolulu

By Adriana Pop, Associate Editor

Nordic PCL Construction Inc. has been appointed general contractor for the $500 million 690 Pohukaina mixed-use project in Honolulu, the Pacific Business News reports. Forest City Hawaii has also selected Benjamin Woo Architects L.L.C. as part of the development team.

Last December, the Hawaii Community Development Authority (HCDA) unanimously approved Forest City Hawaii’s proposal to develop 800 affordable and market-rate housing units on the state-owned parcel located at 690 Pohukaina St. in Kakaako.

Pending further approvals, the public-private venture could include Hawaii’s tallest building at 650 feet. Plans also call for a commercial and civic building, a parking structure, a business incubator and offices for the state’s library system and Friends of the Library.

Forest City and the HCDA are currently involved in an 18-month development process. Construction on the project is expected to begin in 2015 or 2016 and be complete by 2019.

In regional news, Jones Lang LaSalle’s hotels and hospitality group is marketing for sale the Ritz-Carlton Kapalua Resort on Maui.

The beachfront luxury property spans 54 acres and consists of 297 hotel rooms and 107 condominium units (73 of which are unsold). The resort also benefits from 35,288 square feet of indoor meeting space, 173,000 square feet of outdoor meeting space, a 17,500-square-foot Ritz-Carlton Spa, a three-tiered pool, a tennis center and six world-class food and beverage outlets.

“The Ritz-Carlton Kapalua Resort is a strategic and value-add acquisition opportunity that we expect will attract investor interest from around the world,” said John Strauss, managing director of the hospitality group. “A new ownership group has the ability to capitalize on the strength of the Maui lodging market and significant compression from Oahu to drive outsize rate and occupancy growth in the near to medium term.”

At about 727.2 square miles, Maui is the second largest of the Hawaiian Islands. For 18 consecutive years, it has been named “Best Island in the World” in the Conde Nast Traveler Reader’s Poll.

Photo credits: Forest City Hawaii

Blackstone to Acquire Hyatt Regency Waikiki

By Adriana Pop, Associate Editor

The Blackstone Group has agreed to purchase the leasehold interest in the 1,230-room Hyatt Regency Waikiki Beach Resort and Spa in Honolulu.

According to Real Estate Alert, the property’s current owner – a joint venture comprising Goldman Sachs’ Whitehall Street Real Estate Fund and Hyatt Hotels Corp. – is selling the hotel for approximately $450 million, or $366,000 per room. Eastdil Secured is brokering the transaction on behalf of the seller.  

When completed, the transaction will be the second-largest hotel sale in the U.S. since the market downturn; it follows the 2011 sale of the Manchester Grand Hyatt San Diego for $570 million. Blackstone is planning a $75 million renovation of the property. Hyatt will continue to manage the hotel, which will remain under its flag.

The property comprises two high-rises. Amenities include an outdoor swimming pool, wellness facilities, a gym, a well-equipped business center, as well as restaurants and bars.

Located at 2424 Kalakaua Ave., the Hyatt Regency Waikiki Beach opened in 1974. In 2008, Whitehall and Hyatt formed a joint venture to purchase the hotel out of bankruptcy from Japanese firm Azabu Buildings.Whitehall’s interest was 92 percent, while Hyatt owned the remaining stake.

In other news, local developer MW Group Ltd. has broken ground on a $46 million assisted-living rental apartment complex in Pearl City. The Pacific Business News reports that the rental complex, known as The Plaza at Pearl City, will offer 159 units. The project is expected to open in 2014 and create about 400 construction jobs and 100 permanent jobs. MW Group is also considering a second phase of development, which would include 60 memory-care units.

Photo credits: http://hyattregency-waikikibeach.h-rez.com

ONE Ala Moana Luxury Condominium High-Rise Breaks Ground

By Adriana Pop, Associate Editor

Construction has begun on the ONE Ala Moana luxury condominium tower in downtown Honolulu. According to the Pacific Business News, Albert C. Kobayashi Inc. has been appointed general contractor for the 23-story, 206-unit residential high-rise. The project’s developer, HHMK Development, made the announcement during a traditional Hawaiian pre-construction blessing ceremony held on April 5. The new tower is expected to be complete by the end of 2014.

HHMK Development L.L.C. is an entity comprising landowner and developer The Howard Hughes Corp., The MacNaughton Group and Kobayashi Group. Both The MacNaughton Group and Kobayashi Group have worked with Albert C. Kobayashi on two other luxury condominium projects: Hokua and Capitol Place. Kobayashi also built The Trump Tower Waikiki and the University of Hawaii Cancer Center.

Upon completion, the ONE Ala Moana high-rise will offer one-, two- and three-bedroom condominium homes ranging from 760 to 4,100 square feet. Amenities include a wine-tasting room, a chef’s kitchen where owners can bring in their personal chefs, as well as a private salon where personal shoppers may bring items to residents from a multitude of nearby stores.

Last December, all units within the tower sold out in just two days. Prices went from approximately $500,000 for the lower-floor one-bedroom condominiums to more than $9 million for penthouse suites. The average price per unit was around $1.6 million.

The project has received $40 million in mezzanine debt, with profit participation. A&B Properties, the real estate subsidiary of Alexander & Baldwin Inc., provided $20 million, while another $20 million was provided by List Island Properties L.L.C., a U.S. subsidiary of LIST Co. of Japan.

Photo credits: HHMK Development L.L.C.

A&B Properties Launches New Residential Community in Kakaako

By Adriana Pop, Associate Editor

A&B Properties and landowner Kamehameha Schools have announced plans to develop a mixed-use residential community at 600 Ala Moana Blvd., formerly occupied by CompUSA, in downtown Honolulu. The Pacific Business News reports that the $200 million investment will result in more than 460 condominiums.

Called The Collection, the project will feature a high-rise condominium tower, a mid-rise building, townhomes, as well as retail shops and restaurants. Prices for the residences will be in the $300,000 range for one-bedroom units, mid-$500,000s for two-bedroom units and mid-$700,000s for three-bedroom units.

The 43-story high-rise will feature 400 one-, two- and three-bedroom residences with ocean views. Amenities will include a pool, an outdoor lounge, a fitness center, a clubroom, as well as a private dog park within the tower. The four-story mid-rise building will offer about 50 flats, primarily studios and a select number of one- and two-bedroom residences. Furthermore, the project will include 16 two- and three-bedroom townhomes with individual garages.

“A&B Properties is excited to expand its role in the rapid transformation of Kakaako with this newest redevelopment project, The Collection—an entire community within an urban neighborhood,” said Chris Benjamin, A&B president & COO. “The homes are specifically designed and priced to appeal to a range of local buyers, creating a true neighborhood in the heart of Honolulu.”

In other news, California-based MJF Development Corp. is planning the construction of a 20-story, 217-unit workforce condominium tower, also to be located in Honolulu’s Kakaako neighborhood.

According to the Pacific Business News, the new high-rise will replace several single-story industrial buildings at 803 Waimanu St. The project will include 245 parking stalls and a convenience store on the ground floor.

HCDA Director of Planning and Development Deekpak Neupane told the newspaper that upon completion, the tower will offer studio, one-bedroom and two-bedroom affordable condominiums. The price for a two-bedroom unit will be around $350,000.

The HCDA will review the proposal on May 1 and come up with a decision by June 5. Franco Mola, president of MJF Development, expects to begin construction toward the beginning of next year and complete the project in two years.

Photo credits: A&B Properties

Hawaii Pacific University Takes Full Ownership of Aloha Tower Marketplace

By Adriana Pop, Associate Editor

Hawaii Pacific University (HPU) and its development partner, Ed Bushor, have resolved a dispute regarding the ownership of the Aloha Tower Marketplace in downtown Honolulu. According to the Pacific Business News, the university, its affiliate Hawaii Downtown Holdings L.L.C. and Lifestyle Retail Properties L.L.C. have agreed to proceed with a buyout. Financial terms were not disclosed.

The resolution gives HPU full control of the property, allowing it to move forward with an approximately $30 million plan to redevelop the two-story waterfront building into a 300-unit student dormitory and multi-use complex. Plans call for housing on the upper floor and retail, dining and entertainment space on the first floor.

Through Hawaii Lifestyle Retail Properties, Ed Bushor, the founder of eRealty Fund, owned 20 percent of the property. The 165,000-square-foot open-air retail center opened in 1994.

“I am honored to assist HPU, education and youth in the growth of the university,” he said in a statement. “I believe this will further HPU’s ambitious program of development and place it on the map worldwide. This is a win-win for all ­HPU, its students, Bushor and Hawaii.”

The redevelopment project could break ground this summer, HPU spokesperson Todd Simmons told the newspaper. The first students are expected to move in in the fall of 2014.

“This project holds great potential, not only for Hawaii Pacific University but also for downtown Honolulu and for everyone who believes that Aloha Tower Marketplace can be the downtown jewel that so many have hoped it would become,”  HPU President Geoffrey Bannister said in the written statement.

Photo credits: http://www.alohatower.com