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New hotel tower planned for Waikiki

March 28, 2015 By Mark G. Howard Leave a Comment

A Hawaii developer is planning to develop a new hotel in Waikiki

A Hawaii developer is planning to develop a new hotel in Waikiki

A new hotel project in Waikiki is being planned by a Hawaii developer with ties to a partner on the Mainland, an executive with the Honolulu architecture firm that’s part of the project confirmed to PBN.

The new tower, which is in the very early stages of the development process, would be built from the ground up — not a renovation or expansion of an existing property, Craig Takahata, vice president and managing director of WATG, told PBN.

Initial studies are being done on the property, which involves WATG’s high-rise expertise in order to maximize investment and work with development allowances, he said.

Takahata declined to identify the developer, or the exact location of the project.

New hotels built from the ground up are a rarity in the state’s tourism mecca.

There’s California developer Irongate’s Ritz-Carlton, Waikiki Residences two tower project on Kuhio Avenue, which are currently both under construction. Although this project will have a hotel component, it will include also consist of condominium for-sale units.

Plans have also been announced for redevelopments of certain existing properties, such as the King’s Village shopping center by the development team of The MacNaughton Group, Kobayashi Group and BlackSand Capital, which also is being turned into a condo-hotel, like the Ritz project.

There’s also the possible redevelopment of the Waikiki Trade Center into a hotel, according to California-based Coastwood Capital Group, the firm that owns the property.

Additionally, the 659-room Ohana Waikiki West hotel is expected to close down on March 27 for a redevelopment by the new owner — partnership that includes Honolulu’s BlackSand Capital — and reopen next year as the Hilton Garden Inn Waikiki Beach.

The Hilton Hawaiian Village Waikiki Beach Resort also is getting a new 37-story timeshare tower.

The development action in Waikiki comes as no big surprise, as the area continues to enjoy higher revenue per available room and average daily rates as well as occupancy rates.

Duane Shimogawa Reporter – Pacific Business News

Filed Under: Blog, Featured Blog, Waikiki, WAIKIKI Tagged With: Waikiki, Waikiki commercial real estate

Developers reveal new details about Waikiki condo-hotel project replacing King’s Village

March 14, 2015 By Mark G. Howard Leave a Comment

Artist rendering of the condominium-hotel project to be built at King's Village in Waikiki

Artist rendering of the condominium-hotel project to be built at King’s Village in Waikiki

A public filing is revealing more details about the redevelopment of the King’s Village shopping center in Waikiki into a 33-story condo-hotel.

Developers are The MacNaughton Group, Kobayashi Group and BlackSand Capital.

The 248-unit, mixed-use 133 Kaiulani project, which will be located behind the Hyatt Regency Waikiki Beach Resort, will result in the demolition of the King’s Village, Prince Edward apartments and Hale Waikiki, according to a draft environmental assessment.

It will consist of one- two- and three-bedroom units along with ground floor retail space.

There also will be a lobby lounge, bar lounge, restaurant, event spaces, executive offices, a main pool deck, and a fitness center and spa, according to the environmental assessment.

The project’s economic impact will include about $8 million in annual taxes, almost 200 net permanent jobs gained despite the loss of 200 jobs from the demolition of the current buildings, and up to 300 construction jobs, the assessment said.

Construction is expected to begin in 2016 and be completed in 2018.

The developers also plan to set aside $500,000 for beach replenishment or other programs to maintain and expand the beach area, as well as another $500,000 toward construction of ADA improvements for access and a bathroom at the Waikiki Community Center.

Earlier this month, a member of the development team released a rendering of the project, which once called for 256 units.

The development team paid about $41 million to acquire the King’s Village shopping complex in 2012.

Duane Shimogawa Reporter – Pacific Business News

Filed Under: Blog, Featured Blog, Waikiki, WAIKIKI Tagged With: BlackSand Capital, King's Village, Kobayashi Group, The MacNaughton Group

Rendering revealed for Waikiki King’s Village redevelopment

February 16, 2015 By Mark G. Howard Leave a Comment

Artist rendering of the condominium-hotel project to be built at King's Village in Waikiki, Courtesy Kusao & Kurahashi

Artist rendering of the condominium-hotel project to be built at King’s Village in Waikiki, Courtesy Kusao & Kurahashi

A partnership between Honolulu-based BlackSand Capital, Kobayashi Group and The MacNaughton Group. have released a rendering of the proposed redevelopment of the King’s Village behind the Hyatt Regency Waikiki Beach Resort into a mixed-use condominium-hotel project in Waikiki.

Keith Kurahashi of Kusao & Kurahashi Inc. presented an update and informational briefing to the Waikiki Neighborhood Board on Tuesday. Kurahashi said the project has adhered to Waikiki Special District Rules, and the 350-foot, 33-story condominium tower’s unit count has dropped from 256 units to 248 units.

Kurahashi first presented the plans before the board in April 2014. The King’s Village, Prince Edward apartments and Hale Waikiki will be demolished for the project. The Honolulu Star-Advertiser reports neighbors at Tuesday’s meeting said they would oppose the plan.

The partnership paid $41.25 million to acquire the King’s Village shopping complex from Oregon-based Elda Investments LLC in 2012.

Jason Ubay Reporter – Pacific Business News

Filed Under: BlackSand Capital, Blog, Featured Blog, Kobayashi Group, The MacNaughton Group, WAIKIKI, Waikiki Tagged With: BlackSand Capital, Kobayashi Group, The King's Village, The MacNaughton Group, Waikiki Neighborhood Board

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

October 26, 2014 By Mark G. Howard Leave a Comment

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

Filed Under: Commercial Real Estate, Featured Blog, WAIKIKI, Waikiki Tagged With: commercial real estate, Waikiki commercial real estate

Waikiki Landing developer loses $25M loan commitment for Ala Wai redevelopment

July 23, 2014 By idx guys Leave a Comment

The rendering shows the Waikiki Landing project, with Diamond Head in the background.The rendering shows the Waikiki Landing project, with Diamond Head in the background.

The rendering shows the Waikiki Landing project, with Diamond Head in the background.The rendering shows the Waikiki Landing project, with Diamond Head in the background.

The developers of the Waikiki Landing project, a redevelopment of the commercial and boating services at Hawaii’s Ala Wai Small Boat Harbor, are working to find new funding after losing a $25 million loan commitment for the project.

The Honolulu Star-Advertiser Honolulu attorney Keith Kiuchi took over as the Honey Bee USA Inc. project as project developer in March after learning that that a Singapore-based hedge fund had renegged on a $25 million loan commitment to Kiuchi’s client, former Honey Bee principal Hide­­aki Shi­ma­­kura, a Japan-based developer and yacht racer.

The newspaper reports Kiuchi is optimistic that he will have a $24 million loan commitment by the end of this month, and is working with the state Department of Land and Natural Resources on keeping the project’s 65-year lease on the land near Waikiki.

Staff Pacific Business News

Filed Under: Commercial Real Estate, Featured Blog, real estate in the news, WAIKIKI, Waikiki Tagged With: Waikiki commercial real estate, Waikiki Landing

Ilikai owner iStar Financial renovating condo-hotel units to sell

February 2, 2014 By idx guys Leave a Comment

Jan 21, 2014, 6:54am HST
Duane Shimogawa Reporter – Pacific Business News

Ilikai 1777 Ala Moana BlvdThe owner of the Ilikai Hotel in Waikiki is currently in the process of renovating its 203 units in the iconic hotel-condominium, with plans to eventually sell them to individual owners, a spokesman for the owner told PBN.

“We are actively working with various stakeholders to make this as compelling a proposition as possible and are open to working cooperatively with Local 5 to develop a plan that addresses the needs of all parties,” New York-based iStar Financial spokesman Jason Fooks said.

Ilikai hotel-condo listings for sale

However, a spokeswoman for the Unite Here Local 5 hotel workers union, told PBN that if the sale goes through, it is unlikely that a viable hotel operation will continue to exist at the Ilikai.

“We once had over 600 well-paid union hotel workers at the Ilikai in the 1960s and 1970s,” the spokeswoman said. “We are now down to 63 workers.”

The renovation includes new hotel-grade furniture, luxury fixtures and furnishing, high-end materials and new guest amenities, including full kitchens in all units.

When iStar took back the 203 units in a 2009 foreclosure auction, only 35 percent of Ilikai Hotel units were configured with kitchens, which are a significant guest draw for the hotel, the owner said.

“We are also seeking to convert the under-utilized second floor into additional condo-hotel units of the same quality as the units we own on the 22nd through 25th floors,” Fooks said. “[We] intend to market all of these units for sale to individual owners who will also be offered the choice to keep them as part of the iconic Ilikai Hotel.”

When iStar Financial took ownership of the condominium units comprising the closed-down Ilikai Hotel in July 2009, it rejected the option of marketing these units for sale as residences, choosing instead to retail Hotel Management Services to reopen the hotel, Fooks said.

The owner also set about renovating the retail areas of the building, which were substantially vacant at the time, and secured new tenants for the spaces.

“From this uncertain beginning, [we have] worked with hotel employees, management, the building’s [association of apartment owners] and its residential condo owners, and other stakeholders to revive and grow the Ilikai Hotel and reinvigorate the Ilikai condominium building in which the hotel is housed,” Fooks said. “Since [we] took ownership and [Hotel Management Services] restarted operations, the Ilikai Hotel has grown in room count, the retail areas have been re-tenanted with new businesses and amenities, and a new collective bargaining agreement has been negotiated and ratified by the hotel’s employees.”

The Ilikai building consists of 1,009 hotel-condominium units, 90 percent of which are operated in some form of hotel, vacation or monthly rental program.

Ilikai hotel-condo listings for sale

With the owners’ support, in 2011, iStar said that Hotel Management Services initiated a rental program for individual owners to have their units operated as part of the Ilikai Hotel, with about a dozen buyers of units iStar previously sold, as well as other owners, joining the hotel pool, Fooks said.

“In 2013, the Ilikai Hotel was actually larger in room count than it was when [we] reopened it in 2009,” Fooks said. “As owners of the Ilikai Hotel’s front desk and the lobby-level retail shops, [we] have consistently worked to strengthen and improve the Ilikai Hotel, as its closure would significantly reduce the economic value of the over 100,000 square feet of commercial and resort retail areas that [we] own in the building.”

Ilikai hotel-condo listings for sale

Filed Under: Featured Blog, Oahu condos for sale, WAIKIKI, Waikiki

How Tall Can a Honolulu Building Be? It Depends…

January 9, 2014 By idx guys Leave a Comment

Some people are nervously watching the skies, not for UFOs, but for very tall buildings. Gov. Neil Abercrombie’s announcement of a 650-foot high-rise for Kakaako last May, combined with plans for 20 high-rise condos to be built in Kakaako in coming years, has reignited concerns about building height limits. Even architects think the rules are unclear and some of them, as well as residents and legislators, worry that height limits aren’t consistently enforced.

Kakaako became HCDA’s first Community Development District when the Authority was formed, in 1976. ILLUSTRATION: GARY SAITO

Kakaako became HCDA’s first Community Development District when the Authority was formed, in 1976.
ILLUSTRATION: GARY SAITO

First off, while it’s commonly believed that the height limit is 400 feet, the reality is that there are as many as 10 to 15 height limits on Oahu, depending on the zoning for a given area, ranging from 25 feet in residential neighborhoods to 400 feet or more. But, explains architect Scott R. Wilson, chair of American Institute of Architects (AIA) Honolulu’s Regional and Urban Design Committee, zoning changes in a neighborhood can change height limits, and there are seven Special Design Districts on Oahu, each with its own height limits, resulting in a patchwork of plans.

One such district, Waikiki, even has a graduated set of limits, from 220 feet at the Diamond Head end to 350 feet at the Ala Moana end. The 350-foot limit is consistent with downtown Honolulu’s limit, though there are exceptions there, too, such as First Hawaiian Center, the Islands’ tallest building at 429 feet.

Why do height limits top out at about 350 to 400 feet? “City planners wanted to ensure that Diamond Head was not hidden or overwhelmed by buildings,” explains Wilson. “So they chose a height limit that was just under half its (roughly) 800-foot height.”

The City and County of Honolulu sets height limits everywhere on Oahu except in fast-growing Kakaako, where the state’s Hawaii Community Development Authority (HCDA) has the final say on zoning and height limits. The HCDA has an ambitious, pedestrian- and transit-friendly urban plan with height and setback limits, but residents are concerned the HCDA is too willing to grant developers variances to exceed those limits.

“Our residents support redevelopment and modernization, but they don’t want a concrete jungle, like Makiki or Waikiki,” says Rep. Scott Saiki. He worries about variances, 650-foot towers and what he feels is unresponsiveness to the Legislature on the part of HCDA. “With the public scrutiny [about height and density issues] and growing concern at the Legislature about the autonomy of the HCDA, we will take a hard look at the statutory framework of the HCDA in the January session.”

HCDA executive director Anthony Ching says the rules in Kakaako are straightforward: an overall height limit of 400 feet (plus another 18 feet for machinery). Any developer who wants to exceed that has to meet three criteria—at least 75 percent of the units must be priced as affordable workforce housing, the building must receive no government subsidies and the maximum unit size must be 1,100 square feet for a three-bedroom—before he or she can ask for a height variance.

Even then, “it doesn’t mean they’ll automatically get the variance,” says Ching. As for the three possible 650-foot towers, he says rules will be set by this summer, after the environmental impact statement is reviewed. “To build to that height, the project must offer an exemplary public benefit,” says Ching, “and the rules will include public input on the project.”

(Disclosure: Napier served as a volunteer public member of the AIA Honolulu board during his production of this piece, but it does not reflect any board stance on building heights.)

http://www.honolulumagazine.com/Honolulu-Magazine/January-2014/How-Tall-Can-a-Honolulu-Building-Be-It-Depends/

Filed Under: Featured Blog, HONOLULU, WAIKIKI Tagged With: Hawaii Community Development Authority

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