Pacrep to Revise Design for Ritz-Carlton Hotel Condo in Waikiki

By Adriana Pop, Associate Editor

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 Maui

By Adriana Pop, Associate Editor

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 Condominium

By Adriana Pop, Associate Editor

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 Review

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 Facility

By Adriana Pop, Associate Editor

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 18^th. 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.

http://www.buildingsearch.com/HI/honolulu/Land-Listings/401-Atkinson-Drive

Bank of Hawaii Waikiki Center Changes Owners

By Adriana Pop, Associate Editor

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

Planned 459-Key Condo-Hotel in Waikiki Gains Preliminary Approval

By Adriana Pop, Associate Editor

The Honolulu City Council has approved a height variance for the proposed $275 million Ritz-Carlton condominium hotel project in Waikiki. According to KHON, the 350-foot tower planned for a vacant 1.4-acre parcel at the corner of Kuhio Avenue and Kalaimoku Street will exceed the site’s standard limit by 50 feet.

Pending final approval from the city’s Department of Planning and Permitting, the project is expected to break ground toward the end of this year. Upon completion in early 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.

Developed by Los Angeles-based Pacrep L.L.C., the 37-story high-rise will feature 459 luxury condominium-hotel units with expansive ocean views. Early last year, the company purchased the project site for $15.5 million. According to the final environmental assessment, Pacrep expects to sell the units for more than $300 million.

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.

“We are thrilled to be bringing the world’s best hotel and residences brand to Waikiki,” said Pacrep manager Jason Grosfeld. “The Residences will further secure Waikiki’s position as a world-class destination, providing full- and part-time residents, as well as visitors, with all the legendary services and amenities they have come to expect of The Ritz-Carlton brand.”

The new condo-hotel will be the luxury accommodation operator’s first presence on Oahu and its second venture in the Hawaiian Islands. The Ritz-Carlton Hotel Co. operates another hotel and residential suites in Kapalua on Maui.

Condo-hotels allow investors to purchase individual rooms, which are rented to tourists, while proceeds are usually divided with an on-site management firm. Owners may also opt to reside in or manage the condominiums themselves.

Photo credits: PACREP L.L.C.

Plans for the Future of Hawaii’s Pineapple Island Unveiled

By Adriana Pop, Associate Editor

Oracle Corp. CEO Larry Ellison is planning to revitalize Lanai’s hospitality industry by upgrading its existing properties and adding a third luxury hotel. According to the Pacific Business News, the island’s billionaire owner also intends to expand the 1.5-megawatt La Ola solar farm, invest in desalination technology and improve transportation to and from Lanai.

Kurt Matsumoto, head of business operations at Lanai Resorts L.L.C., described the initiatives involving the future of Hawaii’s Pineapple Island at a recent community meeting.

Called “Lanai — Today and into the Future, A Vision for Creating a Sustainable Lanai,” the plan includes renovations of the Four Seasons Resorts and The Lodge at Koele and Manele Bay, as well as the development of a new resort destination on the eastern side of the island.

In terms of renewable energy, Ellison intends to develop a solar farm large enough to power the entire island. The existing La Ola solar farm currently supplies 10 percent of Lanai’s power needs. Plans also call for the use of electric vehicles and the construction of charging stations.

Additional priorities for the future of Lanai include a broader range of healthcare and housing options, small-business development, commercial agriculture, conservation activities, as well as the creation of a research center that would promote sustainability. Ellison also aims to improve the presence of the University of Hawaii’s Maui Community College on Lanai and create “the best school in Hawaii.”

The island is currently involved in a six-month community plan process, which is part of Maui County’s general plan. The next community meeting will be held next month, the newspaper reports.

Last summer, Ellison bought most of Lanai from Castle and Cooke Chairman David Murdock for an estimated $500 million.

Photo credits: www.fourseasons.com/manelebay

A&B Properties Acquires West Oahu Shopping Mall for $29.8M

By Adriana Pop, Associate Editor

A&B Properties Inc., the real estate subsidiary of Honolulu-based Alexander & Baldwin, has acquired the 170,275-square-foot Waianae Mall in Leeward Oahu from TNP Strategic Retail Trust Inc. The $29.8 million purchase price included the assumption of a $19.7 million mortgage, at a 5.4 percent interest rate.

“The Waianae Mall acquisition redeploys proceeds realized from a July 2012 land sale, on a tax-advantaged basis, into a favorably priced, significantly higher income-generating commercial property on Oahu,” said Christopher Benjamin, A&B’s president & COO.

Located 32 miles west of downtown Honolulu, the 10-building retail center on the Waianae Coast serves an area of approximately 35,000 residents. It was built in 1981 and it is anchored by a Long’s/CVS drugstore and a City Mill hardware store. The property’s additional tenants include American Savings Bank, Bank of Hawaii, Burger King, Goodyear Tire, Jamba Juice, Pizza Hut, Radio Shack and Starbucks.

The Waianae Mall’s new owner has already secured a lease agreement with a tenant that will boost occupancy at the center from 79 percent at closing to 93 percent. The lease becomes effective in February.

“We’re thrilled with the opportunity to provide retail options for Waianae’s growing community and to be reinvesting in Hawaii, a market we know best.  We plan to revitalize the mall and restore it as an important retail and community center for Waianae residents,” Benjamin added.

In a separate transaction, A&B Properties Inc. sold the Northpoint Industrial property in Fullerton, Calif., for $14.9 million. The two-building industrial facility offers 119,400 square feet of space. The company now plans to reinvest the proceeds from this transaction into an income-producing property in Hawaii via the 1031 exchange process.

Photo credits: www.loopnet.com

State Agency Green-Lights Student Housing for Aloha Tower

By Adriana Pop, Associate Editor

Hawaii Pacific University (HPU) has gained approval from the Aloha Tower Development Corp. (ATDC) to repurpose the Aloha Tower Marketplace in downtown Honolulu into a 300-unit student dormitory and multi-use complex.

According to the Pacific Business News, the $30 million project to create a 160,000-square-foot, two-story waterfront marketplace would put student housing on the upper floor, with retail, dining and entertainment options on the first floor.

“We’re delighted with the actions taken today by ATDC and excited about our ability to move forward with a project that we believe has tremendous implications for the university, for our downtown merchants and community, and for all of Honolulu,” said HPU President Geoffrey Bannister on the occasion of the announcement.

The university now plans to pursue permits and seek bond financing. Demolition and renovation could begin later this year, with completion scheduled for the fall of 2014.

The Aloha Tower Marketplace sits on state-owned land. Last year, the property was purchased by Ed Bushor, the founder of eRealty Fund, through an entity called Hawaii Lifestyle Retail Properties. AREA Property Partners sold the marketplace for $14 million. Through the entity, HPU now owns 80 percent of the project, while Bushor owns the other 20 percent.

In other news, the Hilton Hawaiian Village Waikiki Beach Resort has completed a seven-month, $25.5 million refurbishment of its beachfront Alii Tower. The renovation included upgrades to the property’s 322 guest rooms, a reconfiguration of its 12 suites and lobby, as well as new bathrooms and corridors.

Hilton Hawaii Area Vice President Jerry Gibson told the Pacific Business News that the new design maintains the Alii Tower’s tradition of grandeur, while also creating a vibrant, modern look. Ann Matsunami, partner at Pacific Asia Design Group in Honolulu, along with Jonathan Staub of Philpotts & Associates were the project’s designers.

Photo credits: www.alohatower.com