Blackstone to Acquire Hyatt Regency Waikiki29 Apr 2013, 4:48 am
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 Ground22 Apr 2013, 4:12 am
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 Kakaako16 Apr 2013, 1:00 am
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 Marketplace8 Apr 2013, 5:54 am
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
Pacrep to Revise Design for Ritz-Carlton Hotel Condo in Waikiki1 Apr 2013, 4:01 pm
The Honolulu Department of Planning and Permitting has granted conditional approval to the proposed $275 million Ritz-Carlton condominium hotel project in Waikiki. The Pacific Business News reports that before construction can begin, California developer Pacrep L.L.C. will need to revise the design of the 37-story tower known as 2121 Kuhio in order to reduce its apparent mass. The company has also been asked to consider an expansion of the commercial space planned for the building’s ground floor and redesign the entry along Kuhio Avenue.
In an attempt to mitigate the visual impact of the high-rise on the shoreline, Pacrep has already reduced the initial width of the project by 48 feet and added three additional floors. Earlier this year, the Honolulu City Council approved a height variance for the proposed 350-foot tower, which at this point exceeds the site’s standard limit by 50 feet.
Also known as the Ritz-Carlton Residences Waikiki Beach, the new development will feature 459 luxury condominium-hotel units with expansive ocean views. The Ritz-Carlton Hotel L.L.C. will brand and manage the residences, which will range in size from 400 to more than 3,000 square feet. Amenities will include resort pools, a spa, a fitness center, an owners’ lounge and storage, a gourmet food market, along with a cafe and restaurant.
Early in 2012, Pacrep purchased the vacant 1.4-acre project site at the corner of Kuhio Avenue and Kalaimoku Street for $15.5 million. The company expects to begin construction this year. Upon completion in 2016, the Ritz-Carlton Residences Waikiki Beach will be the area’s first new luxury condominium property since Trump International Hotel Waikiki Beach Walk opened in 2009.
According to the final environmental assessment, Pacrep plans to sell the units for more than $300 million. The prices of the condominiums range from $500,000 for a studio to over $15 million for a top-floor penthouse.
Photo credits: PACREP L.L.C.
Plans Move Forward for $72M Mixed-Use Project on Maui25 Mar 2013, 4:25 pm
The Maui Planning Commission recently approved the final environmental assessment for a $72 million mixed-use development in Kihei, one of the island’s most populated communities.
According to the Maui News, Krausz Cos. will not need to conduct a more extensive environmental impact statement for the 250,000-square-foot Downtown Kihei project.
The San Francisco-based developer is planning to build a village square; more than 200,000 square feet of office, medical office, retail and restaurant space; a 44,180-square-foot movie theater; a four-story, 150-room hotel; and more than 1,000 parking stalls.
The project will be developed between the Piilani Village Shopping Center and the Longs and Azeka’s centers on four parcels of land totaling 27 acres. Construction is expected to begin in the summer of 2015.
The company’s next steps will be to obtain a special management area use permit, as well as land-use entitlements. The Krausz Cos. will need to rezone a 2.6-acre parcel from business-commercial to hotel and obtain a height variance that would allow for the construction of a 60-foot movie theater. The developer is also conducting a study in order to come up with measures that would help address traffic congestion concerns.
In other news, the Pacific Business News reports that Alexander & Baldwin subsidiary A&B Properties will purchase the 10-story Clifford Center office building in downtown Honolulu from Pacific Office Properties Trust. The transaction is expected to close on April 17 for an acquisition price of $11.2 million.
In 2011, Pacific Office Properties acquired the approximately 77,700-square-foot property for $6.5 million. Earlier this year, the REIT sold the Bank of Hawaii Waikiki Center to Shoei USA Inc. for an undisclosed amount.
Photo credits: http://www.krauszcompanies.com
Howard Hughes Expects $66M Profit from ONE Ala Moana Condominium18 Mar 2013, 4:34 pm
In a letter to shareholders, Howard Hughes Corp. CEO David Weinreb predicted the ONE Ala Moana ultra-luxury condominium tower in downtown Honolulu will generate a profit of $66 million. The Dallas-based company is building the new high-rise in partnership with local developers Kobayashi Group and The MacNaughton Group, the Pacific Business News reports. The three entities have formed HHMK Development L.L.C. for the construction of ONE Ala Moana.
Expected to break ground this summer, the 206-unit tower sold out in just two days during the month of December. The project will cost approximately $900 per square foot to build, with the condominiums selling for an average price of $1.6 million, or approximately $1,170 per square foot.
The 23-story building will rise above the existing Nordstrom parking structure at Ala Moana Center. Upon completion, Howard Hughes’ first residential tower in Hawaii will offer one-, two- and three-bedroom homes ranging in size from 760 to 4,100 square feet.
Facebook Inc. founder, chairman & CEO Mark Zuckerberg purchased several multimillion-dollar residences in the upcoming condominium development, the newspaper reports.
Howard Hughes’ additional plans in Honolulu include development of the Ward Village master-planned community in Kakaako. Plans call for construction over 15 years resulting in two mixed-use residential towers, an affordable housing tower and the renovation of the IBM Building into a contemporary information and sales center. In October, the company announced that the first phase of Ward Village will consist of approximately 500 market-rate condominium units and at least 125 workforce housing units.
“While we have not yet determined pricing for our first-phase towers (at Ward Village), market data suggest that comparable existing ‘front row’ product with unobstructed ocean views re-sold in 2012 at an average price of approximately $1,400 per square foot,” noted Weinreb.
Construction on this phase of the master plan is expected to begin in 2014 and be complete by 2016.
Photo credits: http://www.onealamoana.com
Robertson Properties Group’s Mixed-Use Development Under Review12 Mar 2013, 4:21 am
By Adriana Pop, Associate Editor
The Honolulu Department of Planning and Permitting is currently reviewing Robertson Properties Group’s plans for a $767 million, 1,500-home mixed-use project in Aiea. Called “Live, Work, Play Aiea,” the project will be developed across from Pearlridge Center, on the site of the former Kamehameha Drive-in property.
According to the Pacific Business News, the Los Angeles-based real estate developer is requesting the rezoning of nearly 14 acres of land from community business district to community business mixed-use district, which has a height limit of 350 feet. The area’s current limit is only 60 feet.
The “Live, Work, Play Aiea” development will also include about 143,000 square feet of retail and restaurant space, and as much as 80,000 square feet of office space. If approved, the project will generate a base economic impact of $2.4 billion. Construction is expected to create approximately 1,000 jobs per year during an estimated build-out period of 13 years.
Last fall, the original project was scaled back. Initial plans called for three 350-foot-high towers and two 60- to 80-foot buildings. The revised version, currently under review, proposes one 350-foot tower and four shorter buildings ranging in height from 150 to 300 feet. Plans may also include a 150-room hotel, the newspaper reports.
In other news, Holliday Fenoglio Fowler L.P. has been selected to market the Hotel Renew property in Honolulu on behalf of the seller, Z Tower L.L.C. The 72-room, fully renovated, designer boutique hotel is located at 129 Paoakalani Ave., one-half block from Waikiki Beach. Originally built in 1967, the nine-story property was completely renovated in 2008.
The HFF investment sales team representing Z Tower is led by managing director Holden Lim, senior managing directors William Stadler and Dan Peek, and managing director Scott Hall.
Photo credits: http://www.formpartners.com
Central Y Property Redevelopment Brings Condominiums, Smaller Facility4 Mar 2013, 4:52 am
San Francisco-based MB Property Acquisitions L.L.C. is planning a new 150-unit condominium high-rise at the site of the current YMCA of Honolulu facility, as well as a smaller adjacent building that would better suit the needs of the nonprofit organization.
According to the Pacific Business News, the developer has asked the Department of Planning and Permitting to approve a zoning change that would allow for the development of a high-density apartment mixed-use tower with a height limit of 350 feet. The area’s current limit is only 150 feet.
Last year, MB Property Acquisitions purchased approximately 1.5 acres of the YMCA’s nearly 1.8-acre lot across from Ala Moana Center for an undisclosed amount. The non-profit is using the proceeds from the sale to fund the construction of its new building on the remaining land. Plans call for a three-story, 30,000-square-foot facility that will include a health-and-fitness center, a swimming pool, locker rooms and a youth center that will offer preschool, after-school and summer child care.
In order to clear the way for the new developments, the 60-year-old building at 401 Atkinson Drive will be demolished. Architects Hawaii Ltd. will design the project; Hawaiian Dredging Construction Co. will build it and Prudential Locations L.L.C. will market the condominiums. Construction is expected to be complete by 2016.
In regional news, Concierge Auctions has announced that a designer furnished a 1.33-acre estate in the Hualalai Resort on the Big Island that will sell at a live auction on March 18th. The sale will be conducted in cooperation with Hawaii Life Real Estate Brokers.
Known as “Hale Ku Mana,” or “House of Spiritual Healing,” the 10,056-square-foot custom home includes five bedrooms, four of which have ocean views, and five-and-a-half indoor/outdoor bathrooms. The property also boasts a gourmet chef’s kitchen, a butler’s kitchen with a separate entrance, a garden with native rare Hawaiian plants and privacy walls, six ponds, an outdoor grill and a stone-tiled saltwater pool with unrivaled views of the ocean and the island of Maui.
Bank of Hawaii Waikiki Center Changes Owners25 Feb 2013, 6:24 am
Shoei USA Inc. has acquired the Bank of Hawaii Waikiki Center from Honolulu-based Pacific Office Properties Trust Inc. and its Mainland partner. According to the Pacific Business News, NAI ChaneyBrooks represented the buyer in the transaction. Financial terms were not disclosed.
Located at 2155 Kalakaua Ave., near the Waikiki Beach Walk, this landmark nine-story property offers more than 150,000 square feet of office and retail space, along with 219 parking stalls. Its tenants include Bank of Hawaii, Starwood Hotels & Resorts, Aston Hotels, JTB Hawaii, 7-Eleven and Teddy Bear World.
Last May, the tower’s former owners put the property on the market for $38 million. Larry Taff, president & CEO of Pacific Office Properties, told the newspaper that the company’s partner, a group of Mainland investors, had an 83 percent interest in the building.
Pacific Office Properties owns 21 office properties in Hawaii and Southern California, including interests in 16 joint ventures comprising 4.3 million rentable square feet. The company’s holdings in Honolulu include the Waterfront Plaza and the Davies Pacific Center downtown.
In regional news, construction on the infrastructure of the Ilima at Leihano senior-living community in Kapolei is currently underway. The Pacific Business News reports that the project is being developed by Kisco Senior Living, a Carlsbad, Calif.-based company.
Construction on the first building of the new community could begin later this year. The 78,000-square-foot facility will be built on three-and-a-half acres and will include 84 independent- and assisted-living units, as well as a memory-care wing. The overall cost of this phase of the project amounts to $26 million.
Kiewit Building Group Inc. is the project’s general contractor, while Wilson Okamoto Corp. is in charge of engineering work. Group 70 International is the building’s designer, and Belt Collins is the landscape architect.
Mitch Brown, chief development officer for Kisco Senior Living, told the newspaper that the units will be rented on a monthly basis. The developer is currently seeking partners to build medical office and clinic space, as well as a retail portion and a hotel on the rest of the project’s 20 acres that is available for development.
Photo credits: www.pacificofficeproperties.com