Honolulu’s home price appreciation among nation’s highest

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Honolulu has one of the highest home price appreciation rates in the country, real estate data tracking service RealtyTrac said.

The median price of a home, which includes condominiums, was $480,000 in October, giving Honolulu an annual Home Price Appreciation rate of 10 percent, RealtyTrac says.

The top market for HPA is the Toledo, Ohio market, where the median price of a home is $100,000 and the HPA rate is 33 percent.

Nationally, the median price of a home was $193,000 in October, an increase of 16 percent over October 2013.

YMCA of Honolulu to close branch near Ala Moana Center for redevelopment project in 2015

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The YMCA of Honolulu Central branch across from Ala Moana Center will temporarily close on Feb. 28 for a redevelopment project that will result in a smaller Y building next to a 128-unit condominium on its 1.8-acre property on Atkinson Drive, a spokeswoman confirmed to PBN on Monday.

It’s estimated that it will take about 20 months for construction with a planned reopening of the new YMCA in November or December 2016, Lisa Ontai, spokeswoman for the Honolulu-based nonprofit told PBN.

The proposed condo, called “Aloha Kai,” came under some criticism with concerns arising over obstructed view plains and traffic, but ultimately, those concerns were not enough for the City and County of Honolulu not to approve the zone change for the project.

The new YMCA will encompass 30,000 square feet with no residential units, a swimming pool and a sophisticated aqua facility that will cater particularly to seniors.

The YMCA of Honolulu’s flagship Nuuanu branch, as PBN first reported, also is looking at undergoing a $20 million makeover, including a $5 million parking structure above its surface parking lot, as part of a 10-year master plan, which began two years ago.

Ontai said it expects to conduct a feasibility study regarding this branch in the next three to four months to determine which phases of the master plan could be supported by a capital campaign.

On Monday, the YMCA said it is looking to either sell or lease its Atherton branch in Manoa, directly across from the University of Hawaii campus, which has origins that date back to 1908 when the building was developed to facilitate student conferences on the UH Manoa campus. In 1932, the Charles H. Atherton House was donated to the YMCA to be utilized as a resident facility for university students, its website said.

Duane Shimogawa Reporter – Pacific Business News

OliverMcMillan to develop 400-unit mixed-use residential project in West Oahu

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A sketch of what the project will look like.

A sketch of what the project will look like.

OliverMcMillan Inc., which has developed several residential condominium towers in Honolulu, has been chosen to develop a nearly 27-acre parcel in Kapolei in West Oahu into a 400-unit mixed-use residential project, the state said Thursday.

The Hawaii Housing Finance and Development Corp.’s board of directors selected the San Diego-based developer, which is building the Symphony Honolulu condominium tower across from the Neal S. Blaisdell Center, as the lead developer for the planned 27-acre project within Villages of Kapolei, an 888-acre development that includes affordable housing.

The project is located at the entryway of the community at the corner of Fort Barrette Road and Farrington Highway.

“The Northwest Corner [of Kapolei] is next to the last undeveloped parcel in the Villages of Kapolei, and also the landmark parcel that will define the gateway as a gathering place for the community,” Craig Hirai, executive director of Hawaii Housing Finance and Development Corp., said in a statement. “We look forward to collaborating with the OliverMcMillan development team to create a vibrant, mixed use urban village.”

More than half of the project will be priced for households with incomes of less than 140 percent of the area median income.

Proposed plans also include 154,000-square-feet of retail space, 6,300-square-feet of office space, community amenities and pocket parks.

“We have just begun our work in creating another special place in Kapolei,” Paul Buss, president of OliverMcMillan, said in a statement. “The very next step is getting feedback from the community and working to create the real vision of what this should be. We have assembled a great team to help us to gain and respond to input from our immediate neighbors and the remainder of the Kapolei community.”

Hunt Cos. Inc. and Urban Housing Communities LLC will develop the proposed affordable housing parcels.

SVA Architects Inc., formerly MVE Institutional Inc. is the lead architect for the proposed project. PBR Hawaii & Associates Inc. is the sustainable planning architect. The civil engineer is Community Planning & Engineering Inc.

In August 2013, the state released a request for proposals looking for developers for the 27-acre state-owned parcel.

The HHFDC is the primary agency charged with overseeing affordable-housing financing and development in Hawaii.

Duane Shimogawa Reporter – Pacific Business News

Relief on the way for owners of older Hawaii homes

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The Hawaii State Historic Preservation Division has come up with a list of home-improvement projects, including solar photovoltaic installations, interior renovations for mid and high-rise buildings and bathroom and kitchen repairs, that have no potential to affect historic properties based on previous reviews and staff judgement.

The new list is aimed at easing the burden of unnecessary reviews on owners of homes built 50 years ago or more across Hawaii, reducing the demands on staff time in county planning departments and decreasing the need for SHPD architecture staff to do unnecessary reviews.

It also will allow SHPD to focus its efforts on the projects that have a real potential to affect historic properties and to engage in proactive preservation activities, the state agency said.

Once the final list is compiled, it will be given to the state agencies with permitting authority and the four county planning offices for implementation.

SHPD has opened a comment period for the new list until Nov. 28. Comments should be sent to Anna Broverman.

The SHPD Architecture Branch spends about 80 percent of its time reviewing permits on homes that are 50 years old or older.

During the last fiscal year that ended June 30, the branch reviewed about 6,000 projects, 3,670 of which were reviewed in accordance with the law.

Most of the projects reviewed involved additions or alterations to homes that range from interior electrical upgrades to demolition.

SHPD said its analysis of these reviews shows that the majority result in a determination of “no historic properties affected.”

Additionally, this analysis indicates that some types of projects always result in a “no historic properties affected” determination.

Other projects on the new list include installation of electrical meters, interior electrical upgrades, demolition of additions and detached structures less than 50 years of age, in-kind repairs of interior and exterior features such as doors, windows, siding, fascia and decking, antenna and satellite dish replacements on existing towers and structures not subject to FCC permits, in-kind repairs to carports and garages and the enclosure of existing rear lanai.

The Building Industry Association of Hawaii and historic preservation officials in the state have not seen eye to eye on this issue.

BIA-Hawaii contends that the 2008 law mandates that SHPD complete a time-consuming review of a potential historic home’s building permit application if a homeowner plans to renovate or rebuild their home.

Duane Shimogawa Reporter – Pacific Business News

Kahala beachfront property that once hosted presidents and heads of state sells for $19.4M

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A Kahala beachfront property that once hosted presidents and heads of state, before falling into disrepair, has been sold to an unidentified buyer for $19.4 million.

Alexander & Baldwin had bought the property at 4653 and 4653B Kahala Avenue from Japanese businessman Genshiro Kawamoto, who demolished the residence and allowed the property to deteriorate. It had once been the home of Hawaii philanthropist Cecily Johnston, co-founder of Pacific Construction Co., who hosted celebrities, presidents and heads of states there.

“This has always been a very prestigious property,” said Perry, who declined to disclose information about the buyer.

She said she did not know the buyer’s plans for the property.

One of the parcels is 26,400 square feet and the other is 36,894 square feet, Perry said.

In September 2013, Alexander & Baldwin paid $98 million for 27 properties that Kawamoto owned. In December of that same year, A&B bought three more properties, including the two that Johnston had owned, for another $30 million.

Perry said the sale represents a milestone in the renaissance of Kahala Avenue.

Coldwell Banker said the sale is the highest-priced land sale on Oahu since 2006.

Bill Cresenzo Reporter – Pacific Business News

Luxury_Oahu_Estates_$2M -_$3M
Luxury_Oahu_Estates_$3M -_$4M
Luxury_Oahu_Estates_$4M -_$5M
Luxury_Oahu_Estates_$5M -_$6M
Luxury_Oahu_Estates_$6M -_$8M
Luxury_Oahu_Estates_$8M – 10M
Luxury_Oahu_Honolulu_Condos

Why is my house being sold all over the Internet?

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I signed an agreement with one real estate broker to sell my house. But now my house is not only on his company’s website—it’s showing up for sale on a bunch of other websites, too. What gives?

Maximum exposure for a home is a good thing. The more people who know your home is for sale, the better your chances of finding a buyer. “Casting a wide net” may help you find a buyer sooner, sell your house for more money—possibly even create a situation with multiple buyers competing to purchase your home. And there’s no wider net than the Internet. Most brokers have agreements and systems in place to display listings on a variety of websites, including other local brokerages and national listing portals, like realtor.com and hicentral.com.

Look at your listing agreement. If it’s the Exclusive Right-To-Sell Listing Contract from the Hawaii Association of  REALTORS® and Property Type Addendum, you’ll see in General Listing Information ‘Show Internet’ that it authorizes the broker to display the property on the Internet without limitation unless one of the following sections is checked. If you’d like to restrict display of your property, talk with your broker. Just realize, though, that you’ll be limiting the number of potential buyers who know that your house is on the market.

Chinese investor buys 11 lots in Oahu North Shore subdivision for $6M

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Nearly half of the lots in a 25-lot residential subdivision on Oahu’s North Shore overlooking the famed Waimea Bay have been purchased for $6 million from a Hawaii family by a Chinese investor.

The 11 lots, which total a little more than two acres, at The Bluffs at Waimea were sold to an entity called Dhara LLC by the Burger family, according to public records.

Hawaii businessman D.G. “Andy” Anderson was a consultant on the project

Dhara, which was formed in July and lists Shaoxiong Huang as its manager, recently bought the 11 lots, including one with a home on it, from the Burger family, which is keeping two of the lots.
Deborah Macer Chun, a partner with Honolulu-based Chun Kerr LLP, who is listed as the attorney representing Dhara, declined comment.

The Bluffs at Waimea Bay is located on a hillside between Waimea Bay and Haleiwa town. The 23 lots being sold range from 7,500 square feet to 15,630 square feet, and homes have already been built on five of the lots.

The purchase represents another example of Chinese investors’ appetite for Hawaii real estate.

Another example included Thai-Chinese businessman Chanchai Ruayrungruang’s Reignwood Group.

As PBN first reported, the group became Hawaii developer Jeff Stone’s financial partner for 1,103 acres, including the Prince Golf Course at the Princeville Resort in Hanalei on Kauai’s North Shore, in a deal worth $343 million.

Chinese investors are expected to spend more than $175 billion during the next few years acquiring real estate around the world, including Hawaii.

BIA-Hawaii’s Parade of Homes a reflection of inventory-strained housing market

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The BIA-Hawaii Parade of Homes grand champion winner is “Kipuka at Hoakalei Golf Series, Plan 5” by Haseko Development, Inc.

The BIA-Hawaii Parade of Homes grand champion winner is “Kipuka at Hoakalei Golf Series, Plan 5” by Haseko Development, Inc.

The Building Industry Association of Hawaii’s annual Parade of Homes, which at one time had as many as 40 entries, was canceled last year and has just seven entries in 2014, a reflection of the inventory-strained housing market in Hawaii, especially on Oahu.

The Parade of Homes, which is in its 57th year in Hawaii and happening this month on Oahu and Maui, is a showcase of new homes on the market.

But Gladys Quinto Marrone, the new CEO of the BIA-Hawaii, told PBN this week that there’s just not enough product on the market these days.

“Our big picture goal [at BIA-Hawaii] is finding a way to encourage the building of housing at all levels,” she said. “There’s not a whole lot of housing for the middle class. People can’t sell because there’s really no place to go.”

For Marrone, the concern is personal — she and her husband, who live in a condominium in Makiki, are currently looking to upgrade, but just can’t find what they’re looking for.

“I’m driven because I feel the direct impact of the housing situation, and having lived in the Mainland and seeing the different costs up there and having come back here and seeing what it costs here, is just not fair,” she said. “I’m motivated to make it better. Education is key, to both policy makers and consumers.”

With thousands of residents moving to the Honolulu neighborhood of Kakaako in the next decade or so in one of at least a dozen new condos to be built, and with the master-planned communities of Hoopili in Ewa and Koa Ridge in Central Oahu set to add some 15,000 homes, the product seems to be there, but just not built out yet.

Marrone wants BIA-Hawaii to be able to be the organization that helps with Hawaii’s housing issue.

“We are home builders and we want to encourage that,” she said. “We have to be able to educate legislators about why home prices are so high and of all the lack of supply issues. Hopefully going into the next session, they will be more supportive of our proposals or at least refer to us for information.”

Duane Shimogawa Reporter – Pacific Business News

Waikiki Landing developer secures new funding for $31M Ala Wai harbor project

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This rendering shows a view of the Waikiki Landing project from Ala Moana Boulevard heading toward Waikiki. The developer's attorney told PBN that the $31 million project has received a funding commitment from a new investor

This rendering shows a view of the Waikiki Landing project from Ala Moana Boulevard heading toward Waikiki. The developer’s attorney told PBN that the $31 million project has received a funding commitment from a new investor

The long-planned $31 million Waikiki Landing project at Hawaii’s Ala Wai Small Boat Harbor, which lost its funding several months ago, has received a new funding commitment from another investor, the project developer’s attorney told PBN.

The project includes wedding chapels, restaurants, retail and office space and a boat-repair facility and fuel dock. The most recent estimate had construction starting in late September with a completion date of late November 2015. No new timeline for construction has been set yet.

Keith Kiuchi, the attorney for developer Japan-based Honey Bee USA, confirmed to PBN that the developer has received a signed letter of intent from an investor, and that the letter has been presented to the Hawaii Department of Land and Natural Resources, the project’s landlord.

Kiuchi declined to say who the investor is, although DLNR will be holding a hearing on Nov. 14 to talk about the project’s new investor.

“That hearing will include both the equity investor as well as the funding vehicle [the lender],” he said. “We have a letter of intent from the investor and two separate term sheets from two separate lenders. So we believe we have an equity investor, but we’re looking carefully at the two term sheets.”

Kiuchi has said it received lease approval from the DLNR, which owns the land, on Dec. 6, 2013, and has received all of its necessary permits to start construction.

Duane Shimogawa Reporter – Pacific Business News

Avalon to break ground on $165M Hawaii Kai residential project

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This rendering shows the plan for the 7000 Hawaii Kai residential rental project.

This rendering shows the plan for the 7000 Hawaii Kai residential rental project.

Honolulu-based Avalon Development Co. LLC is set to begin construction Friday on a $165 million Hawaii Kai residential rental project that was first planned as a luxury condominium project by a South Korean developer, and has had starts and stops during the last several years.

The cost to develop the project is pegged at $108 million, but with the land cost penciled in, the total cost of it is $165 million, Christine Camp, president and CEO of Avalon, told PBN.

Originally called the Hale Ka Lae condominium, the project at 7000 Hawaii Kai Drive, which includes two 10-story buildings and a parking structure on nearly four acres of land, is now being called 7000 Hawaii Kai.

There will be a total of 269 units at both market-rate and affordable rates.

Avalon Development was contracted in December by the landowner, South Korea-based Hanwha Engineering and Construction, to develop, redesign and obtain financing for the project. The developer is holding a groundbreaking ceremony on Friday at 10:30 a.m. at the 7000 Hawaii Kai Drive site.

Rents for the affordable portion of the project will range between $1,475 per month to $2,200 per month, while rents for the market-rate units will range from $2,200 per month to $3,700 per month. The rents include maintenance fees.

The developer said that it should finish the project in about 16 months, which would mean the second quarter of 2016.

Duane Shimogawa Reporter – Pacific Business News