HONOLULU CONDOS HIT RECORD MEDIAN PRICE IN JANUARY, ACCORDING TO HONOLULU BOARD OF REALTORS®

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HONOLULU — The Honolulu Board of REALTORS® released resale figures today for the month of January 2015. According to the analysis conducted by the Board, using data collected from its computerized Multiple Listing Service (MLS) system, the statistics are:

Jan2015

During January 2015, sales of single-family homes decreased by 14.6 percent from January 2014, while condominium sales decreased by 7.7 percent compared to January 2014. The median price paid for single-family homes in January 2015 increased by 7.2 percent from the same month last year to $675,000

The median price for condominiums increased by 19.2 percent from January 2014 to $381,500, which marks an all-time high for that figure. The previous record for condominium median price was $361,250, set in December 2014. According to the Days on Market indicator, single-family homes were on the market for an average of 26 days, while condominiums were on the market for an average of 27 days.

“This is traditionally one of the slowest months of the year, so the sluggish sales of single family homes and, to a lesser extent, condos, is not too surprising,” said Jack Legal, president of the Honolulu Board of REALTORS®. “However, what’s notable is the jump in median sales price, including a new record set for condominiums. This indicates demand for housing is still very high, and the one factor that is putting a damper on the market is, as usual, the lack of inventory, especially for single family homes.” The public is encouraged to visit www.hicentral.com to see what’s happening in the housing market.

Established in 1922, the Honolulu Board of REALTORS® is one of the largest of 1,500 boards of REALTORS® in the nation, and, with more than 5,500 members, it is one of the largest trade organizations on Oahu. Membership is available to licensed real estate brokers, agents, property managers, appraisers, counselors and others engaged in all aspects of the real estate industry who pledge to adhere to a strict Code of Ethics and Standards of Practice. For more information, call (808) 732-3000 or visit www.hicentral.com.
(This report reflects information about resales of existing properties only and does not include new home sales. All of the MLS information is compiled from sales reported during the cited months; this data is known only after closing of escrow. The time delay between the signing of a sales contract and the closing of escrow is usually between one and three months.)

Historic ‘Marks Estate’ in Honolulu on the market for $5.6M

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The Marks Estate in Honolulu's Nuuanu Valley is up for sale

The Marks Estate in Honolulu’s Nuuanu Valley is up for sale

The historic Clarence H. Cooke Residence in Honolulu’s Nuuanu Valley, also known as the Marks Estate, is on the market for about $5.6 million, the broker marketing the sale told PBN Thursday.

JPMorgan Chase Bank took possession of the 4.7-acre, eight bedroom, eight bathroom mansion this past June for $6.5 million in foreclosure from the previous owner, Douglas Himmelfarb, who bought the property in 2006 for $4.4 million.

In May, Himmelfarb, a Hawaii art and furniture collector, auctioned off hundreds of items in the home, including furniture that once belonged to hair-care mogul Paul Mitchell and dishes once owned by movie producer Steven Spielberg.

Himmelfarb, who used to live at the estate, had collected most of the artwork and furniture pieces through inheritance, various estate auctions and antique shops across the United States.

His most interesting piece, which was not on the auction block, is a painting Himmelfarb claims was done by American painter Mark Rothko that could be worth up to $40 million, if it can be authenticated, which has been his quest for nearly three decades.

Built in 1932, the mansion, which is located at 3860 Old Pali Road, is known for its interesting architecture and connection to Cooke, a wealthy businessman, who was a former head of Bank of Hawaii and son of the heirs to the Castle & Cooke fortune.

The estate was also known as the Marks Estate after being purchased by Elizabeth and Lester Marks, and has been featured in movies and television shows. It includes maids’ quarters, pool house, carriage house, guest house and a caretaker house.

“[It’s for] someone who wants a trophy property,” David Buck, a Realtor with Hawaii Life Real Estate Brokers, who is marketing the property, told PBN. “It does need some work.”

The estate, which is listed in the National Register of Historic Places and the Hawaii State Register of Historic Places, has a total property assessed value of $6.2 million, according to tax records.

Duane Shimogawa Reporter – Pacific Business News

Luxury_Oahu_Estates_$2M -_$3M

Luxury_Oahu_Estates_$3M -_$4M

Luxury_Oahu_Estates_$4M -_$5M

Luxury_Oahu_Estates_$5M -_$6M

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Luxury_Oahu_Estates_$8M – 10M

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Hawaii’s time-share industry has 1,200 units in development, 4,000 more entitled, association says

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Hawaii remains an important location for the time-share industry, with approximately 1,200 units currently planned or in construction, and 4,000 units entitled for development.

Howard Nusbaum, president and CEO of American Resort Development Association, and Henry Perez, chairman of the Hawaii ARDA chapter and general manager of Hilton Grand Vacations Club’s Grand Waikikian, spoke to PBN about the current state and outlook of the time-share industry.

Nusbaum said the time-share industry is 45 years old and started as “an accidental vacation problem,” converting condominiums to hotel inventory. From 2012 to 2013, it saw double digit growth and is currently an $8 billion industry in the U.S., with more than 8.5 million households owning a time share unit. Nusbaum said a worldwide study will be published in 2016 and he estimates it’s a $16 to $18 billion industry.

Time shares thrive on location, Nusbaum said, and can be found in 48 states, from sunny locales like Florida and California to ski resorts. (There are no time shares in North Dakota and Kansas.)

Hawaii ranks No. 3 in terms of number of time-share units, but Nusbaum said Hawaii is important for the industry because it is one of the few places with “purpose built,” or new construction, while other places convert condo or hotel properties. He also noted that when someone is shopping for a time-share unit, the marketer most likely will show what a unit in Hawaii will look like because it’s a dream vacation for many people.

Perez said there are more than 11,000 units currently in Hawaii, with 1,200 in the pipeline being built right now, and 4,000 units entitled for development.

Both Perez and Nusbaum noted that time-share occupancy rates are higher than hotel occupancy rates. In the second quarter of 2014, Hawaii’s time-share industry had an average occupancy of 89.3 percent, compared to 76.1 percent for hotels during the same time period, according to the Hawaii Tourism Authority. Time-share owners paid $12.3 million in taxes during the quarter in a mix of real property tax, conveyance tax, general excise tax, transient occupancy tax and transient accommodations tax.

As the Hawaii Legislature begins Wednesday, ARDA hopes to sponsor and support legislation providing consumer protection, facilitating a platform for well-capitalized developers to do business in Hawaii and supporting sustainable growth practices.

On the topic of vacation rentals, he noted that Vacation Rental By Owner is a member of ARDA, and he says it’s a new distribution channel. He said there are regulations that need to be in place, noting fire safety and fraud, but other regulations may need to change with the times. To put it in context, he noted that travel agents wanted to ban the Internet 20 years ago.

Nusbaum said time shares have become more mainstream and many of the big hotel companies are in the time-share industry. Many have a presence in Hawaii, including Diamond Resorts International, Marriott Vacation Club and Wyndham Vacation Ownership, which all are ARDA-Hawaii members.

Jason Ubay Reporter – Pacific Business News

Honolulu’s construction crane count continues to rise, Rider Levett Bucknall report says

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Construction cranes are signs of economic prosperity in Honolulu.

Construction cranes are signs of economic prosperity in Honolulu.

The number of construction cranes increasing in Honolulu can be attributed to the much publicized uptick in residential activity in the Kakaako neighborhood.

Tower crane counts dotting Honolulu’s skyline increased to 16 at the most recent count in November from 13 in August, according to the inaugural edition of Rider Levett Bucknall’s North American Crane Index.

Residential projects account for 53 percent of the tower cranes in Honolulu, with large commercial projects representing 33 percent of the total cranes, the report said.

Health care and hospitality projects make up a smaller percentage of the total crane amount.

While a couple of tower cranes have come down in the last six months as residential high-rise projects are completed, several more developments have begun and the pipeline of projects is likely to result in additional cranes during the next 18 months, Rider Levett Bucknall said.

The international firm known for providing property and construction consultancy advice at all stages of the construction cycle projects that the residential project growth will continue to increase both in the number and percentage of residential tower cranes based on recent ground breakings and piling activities in Honolulu.

The RLB Crane Index, which is published biannually, tracks the number of fixed cranes in major cities across North America.

Local RLB offices count the fixed tower cranes using three techniques, including a physical count, surveying its staff and contacting crane suppliers.

The crane index began in Australia in 2012 and now includes New Zealand, Southern Africa, the Middle East and North America.

The January 2015 North America report said that residential projects in Boston, Chicago, Denver, Honolulu, Los Angeles, New York and Seattle are responsible for the majority of cranes dominating the city skylines.

Of these locations, the majority of residential projects going up are mostly condominium and apartment developments.

With new construction developments emerging, along with an increase of redevelopment, renovation and expansion projects, Rider Levett Bucknall anticipates that tower cranes across North America will continue to increase throughout 2015.

Duane Shimogawa Reporter – Pacific Business News

Bank of Hawaii Waikiki Center sold for $38M

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bank-of-hawaii-centerbuilding-304xx387-581-0-10Japan’s Shoei USA Inc., a helmet manufacturer, paid $37.75 million in the leasehold purchase of the iconic Bank of Hawaii Waikiki Center, according to public records.

Up until now, the sales price of the 153,059-square-foot, nine-story building at 2155 Kalakaua Ave. — which includes a mix of office and retail tenants, including Bank of Hawaii, Starwood Hotels & Resorts, JTB Hawaii and 7-Eleven and soon-to-be Waikiki’s first Longs Drugs store — was unknown.

The previous owners, Honolulu-based Pacific Office Properties Trust Inc. (Other OTC: PCFO) and a group of Mainland investors, quietly put the center on the market for $38 million in 2012.

The land is still owned by the Lahaina, Maui-based company, Kapuahelani, which lists the Barbara McNamara Trust, Florence Thomas and Melissa Raymond as partners of the firm, according to public records.

Honolulu’s NAI ChaneyBrooks represented the buyer in the sale.

The property was built in 1980 as a retail center that was anchored by Japan’s Mitsukoshi Department Store. In 1989, it was acquired and redeveloped into a mixed-use office and retail center and was known as the ANA Building.

Pacific Office Properties purchased it in February 2007.

Duane Shimogawa Reporter – Pacific Business News

Honolulu plans major deployment of free Wi-Fi in Waikiki

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waikikitrolleysurfboards-600xx572-381-14-0Honolulu is planning a major deployment of free Wi-Fi in Waikiki this year as part of a larger effort to expand this type of service throughout Oahu, the head of the City and County of Honolulu’s information technology department told PBN.

For several years, the department has already been partnering with carriers to provide free Wi-Fi in dozens of locations on Oahu.

Mark Wong, director and chief information officer of the city’s Department of Information Technology, told PBN that engineering work is currently being done for this major project in Waikiki, with plans to begin delivering service sometime this year.

“We are expanding fee Wi-Fi in the city,” he said. “We have a franchise agreement with Oceanic [Time Warner Cable] to deploy free Wi-Fi in areas across Oahu in heavily populated areas or areas that the public uses a lot.”

Wong noted that these targeted areas currently do not have free Wi-Fi access.

The entire project, which includes the state’s tourism mecca, is expected to cost just under $1,000 per month.

“We’re doing it this year and we’re doing it area by area,” he said. “The goal is to make Honolulu a showcase of what can be done.”

Last week, PBN first reported that Honolulu also is planning to install a $2 million high-speed Internet project along its planned 20-mile elevated rail transit system line that will run from West Oahu to Ala Moana Center.

The project, which involves installing 1,000 pairs of fiber to provide broadband access to the areas near the 21 rail stations, is expected to begin installation this year.

Read more about broadband technology in Friday’s print edition of Pacific Business News.

Duane Shimogawa Reporter – Pacific Business News

‘Area in transition’ will become bank’s campus

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pg03asb-new-headquarters230-n-beretania-st-600xx1488-992-6-0American Savings Bank’s plan to build a new corporate campus near Downtown Honolulu that will serve as its new Hawaii headquarters makes lots of sense, especially from an investment standpoint, a commercial real estate expert told PBN.

“That whole area is in transition,” said Scott Mitchell, executive vice president of Colliers International Hawaii. “Lots of money is being spent in that area. It’s a pretty astute buy.”

PBN broke the news this week that the Honolulu-based bank, a subsidiary of Hawaiian Electric Industries Inc. and sister company to Hawaiian Electric Co., is buying the 62,595-square-foot parcel at 230 N. Beretania St., just outside of Chinatown, for an undisclosed price.

The move will bring together 600 of its employees from around the island, including its top executives, in a 100,000-square-foot building.

Mike Hamasu, director of consulting and research for Colliers, said the purchase stabilizes the bank’s occupancy costs.

“They don’t have to continually rent,” he said. “Since it’s an owner-user [arrangement], it might be a good move.”

Hamasu also noted that it might help clean up the area.

“By building on a previously vacant site, it will likely relocate the people using the site right now,” he said.

Richard Wacker, president and CEO of American Savings Bank, told PBN that the new location gives it the culture to collaborate and move quickly.

“We spend a lot of time on company culture and we try to be the best place to work,” he said. “Bringing everybody together will be a big step.”

The new corporate campus — likely to be a single structure, with parking — may include a branch on the bottom floor, said Beth Whitehead, the bank’s executive vice president and chief administrative officer.

“It really has been a goal of ours to find a campus for several years,” she said. “We have teammates in six different locations. That’s difficult to huddle and work together. We have been looking for and debating on a location for years.”

Approximately 600 current employees will be moved to the new location from offices in Mililani, the 677 Ala Moana Building near Downtown Honolulu, the Financial Plaza of the Pacific in Downtown Honolulu, Kalihi, Chinatown and the American Savings Bank Tower at Bishop Square.

There are no plans to close any branches, including those in Chinatown and Bishop Square, near the future headquarters, Wacker said.

Plans for the building have not been finalized, although 100,000 square feet is a rough estimate of how much space it could encompass, Whitehead said, adding that construction and opening dates have not been confirmed.

“We have to finish the elements of design and budget for it,” she said.

The property, which is made up of two parcels, had an asking price of $14 million, according to JLL, formerly Jones Lang LaSalle, which marketed the property at the corner of North Beretania and Aala streets.

Seattle-based HighMark Investments, the owner of the property, whose owners used to own a construction company in Hawaii, had plans in 2006 to build a 15-story medical office building and outpatient surgery center there.

About two years later, another plan to build a medical office building by Montecito Medical Investment Co., in partnership with PM Realty Group, also fell through, mainly because of the economic downturn

Duane Shimogawa Reporter – Pacific Business News

Honolulu among top 10 most inspiring cities for photographers

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If you live in Hawaii, you’ve likely got some impressive photos on your Facebook or Instagram feed.

Turns out, a lot of people here do, which is why a Florida-based website considers Honolulu one of the best places in the nation to snap a photo.

Printaholic.com put Honolulu on its list of top “10 Most Inspiring Cities for Photographers,” noting that “apart from the exotic scenery, photographers will love taking photos of Hawaiian architecture and culture.”

Other cities include:

Seattle, Washington
Portland, Maine
New Orleans, Louisiana
Savannah, Georgia
Portland, Oregon
St. Augustine, Florida
Newport, Rhode Island
Anchorage, Alaska
Ann Arbor, Michigan

http://khon2.com/2015/01/21/honolulu-among-top-10-most-inspiring-cities-for-photographers/

Honolulu’s Capitol Market Building to be redeveloped into apartments

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The Capitol Market Building, a three-story commercial building at the corner of Kalakaua Avenue and Beretania Street in Honolulu, is being redeveloped into 14 apartment market-rate units for sale, with plans to build a fourth floor, the owner of the property told PBN.

The $2 million redevelopment of the property, which is located at 1541 Beretania St., is expected to begin in mid-February and be completed by the end of the year, Dennis Mahoney, owner of the 60-year-old building told PBN.

“It’s a very old building,” he said. “We will be gutting the three floors and putting in 14 apartments on the second an third floors, and the commercial entities will stay on the ground floor.”

Mahoney said that the buyers of these apartments will be able to share amenities with the adjacent Kulana Hale senior housing facility, a project he was a part of as well.

The Pho Tri restaurant, which has been located on the ground floor of the building for years, will remain in its spot and be joined next door by Pacific Business Specialists. The accounting and bookkeeping firm is moving from a higher floor to the ground floor of the building.

“We may put two three-bedroom units on the fourth floor,” Mahoney said. “But we will need to get approvals and permits for that.”

He noted that he has owned the property for many years, and instead of selling it, he decided to renovate it.

Honolulu-based Pacific Atelier handled the architecture services for the project, while Honolulu-based Coastal Development has been named general contractor for the renovation.

Late last week, the City and County of Honolulu’s Department of Planning and Permitting issued Mahoney a building permit for the project.

Duane Shimogawa Reporter – Pacific Business News

Hawaii apartment rental portfolio sale goes for $300M

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The entrance to Kalaeloa, where part of Hawaii's largest apartment rental portfolio sale in 2014 is located.

The entrance to Kalaeloa, where part of Hawaii’s largest apartment rental portfolio sale in 2014 is located.

California-based Carmel Partners’ recent portfolio sale of nearly 1,000 apartment rental units on Oahu for $300.5 million is the largest multi-family project sale in Hawaii in 2014.

As PBN first reported, Carmel Partners sold its 520-unit Kalaeloa Rental Homes portfolio in West Oahu to a joint venture between the Boston-based real estate private equity firm, Rockpoint Group, and the California-based real estate investment firm, DiNapoli Capital Partners, for $154.5 million.

A few days later, the California-based real estate investment trust, Douglas Emmett Inc., announced that it purchased the 468-unit Waena Apartments in Honolulu for $146 million from Carmel Partners.

Located at 1320 Aala St., the property consists of 24 buildings on 12 acres and is about 97 percent leased.

Douglas Emmett’s total multifamily portfolio now consists of 10 properties totaling 3,336 units in West Los Angeles and Honolulu. Douglas Emmett also owns 61 office properties in Los Angeles and Honolulu, including Bishop Square, totaling about 15.3 million square feet.

David Asakura, partner and principal broker of Honolulu-based Commercial Asset Advisors, who represented the seller in this 988-unit portfolio, told PBN Friday that between 50 and 100 entities showed interest in the portfolio, although there were between five and 10 entities that showed serious interest in the properties.

“Multifamily apartment properties of this magnitude do not come to market often in Hawaii, and we had strong interest in the portfolio from a variety of mainland-based institutional investors, as well as a few local groups,” he said. “I believe the timing of these acquisitions will prove to be excellent for both buyers in the coming years. Kalaeloa should benefit from its proximity to Debartolo’s Ka Makana Alii regional mall project, as well as the numerous other commercial projects currently in development that will drive job growth in the Kapolei area. Similarly, Waena should enjoy an uplift from new projects in its surrounding area such as American Savings Bank’s new corporate campus, which will be just down the street, and Hunt Companies’ redevelopment of the Mayor Wright Homes site, which is just across the street.”

Chris Beda, senior managing partner and chief investment officer of Carmel Partners, previously told PBN that it sold the apartment portfolio as part of its overall investment strategy.

In 2012, the San Francisco-based private real estate investment firm specializing in multifamily transactions, purchased The Waterfront at Puuloa oceanfront rental community in Ewa Beach in West Oahu, now known as Kapilina Beach Homes, for $311 million from Hunt Cos., which was one of the biggest multifamily property transactions in the United States that year.

Beda said that the company is open to acquiring all types of apartment projects with at least 100 units on Oahu.

Carmel Partners has looked at some projects on Maui but most of its business will be done on Oahu, Beda said.

Rockpoint Group, which is familiar with the Hawaii market, with transactions involving the Four Seasons Hualalai Resort on the Big Island and the Courtyard by Marriott Waikiki Beach Hotel, couldn’t be reached for comment.

DiNapoli Capital Partners, which also is familiar with Hawaii, with such transactions involving the Aloha Beach Hotel on Kauai, declined comment.

Douglas Emmett did not respond to a message left by PBN on Friday.

Duane Shimogawa Reporter – Pacific Business News