New proposed 500-unit rental project in heart of Waikīkī will include quality new housing for the local workforce with 20% of rental units set for households earning up to 80% of AMI.
OliverMcMillan, developer of Pacifica Honolulu and Symphony Honolulu is partnering with Queen Emma Land Company to announce the redevelopment of 2.5 acres of land in the heart of Waikīkī into a vibrant commercial mixed-use rental project. Located on the corner of Kūhiō Avenue and Kānekapōlei Street, Brookfield Properties has entered into a lease purchase agreement with the rights to a 65-year ground lease with property owner, Queen Emma Land Company, to develop approximately 500 market-rate and affordable housing rental units, replacement of a full-service grocery store and curated neighborhood serving retail along Kūhiō Avenue.
“We are honored and excited to be selected as the team to bring this much needed rental product offering to Waikīkī under a long-term ground lease that will preserve Queen Emma’s legacy lands and further the mission of Queen Emma Land Company and The Queen’s Health Systems to provide quality health care in Hawai‘i,” said Dene Oliver, CEO of OliverMcMillan. “This is truly a special opportunity that is enabled by the vision of the Queen Emma Land Company and the legacy of Queen Emma and King Kamehameha IV.”
“Brookfield Properties was selected through a competitive Request for Proposal process for their ability to deliver quality mixed-use projects. Queen Emma Land Company looks forward to see this portion of its Waikīkī ownership redeveloped into quality housing units,” said Eric Martinson, president of Queen Emma Land Company. “Redeveloping this site will play an important role in furthering Queen Emma Land Company’s Waikīkī strategic asset management plan and provide financial support to The Queen’s Health Systems in fulfilling its mission to provide quality health care services to the people of Hawaiʻi, while at the same time supporting the need for housing, especially those working in Waikīkī and neighboring areas.”
The proposed project consists of a new construction 450-unit high-rise tower and a parking podium located at the recently demolished Makittii Hawaii restaurant. The rental tower is proposed to be built within the current height limit of 260-feet with a mauka to makai orientation, comfortably matching the scale of adjacent buildings in the neighborhood. The project vision also includes the renovation of 50 rental units located in four existing apartments on the Diamond Head side of Kānekapōlei Street, completion of the revitalized retail corridor on Kūhiō Avenue with 38,000 square feet of retail space on two-levels, place making elements, and preservation of the large exceptional banyan tree, historic architecture and open space.
The project’s housing program envisions a mix of studio, one-bedroom, two-bedroom and three- bedroom units, ranging from approximately 350 to 1,100 square feet of living space. “Brookfield Properties has a commitment to affordable housing in Honolulu. We are proud to devote 20% of our total targeted 500 rental units as affordable housing rentals for households earning up to 80 percent of the area median income,” said Kris Hui, director of development at OliverMcMillan. “The remaining 400 market- rate rental units are an exciting new offering that provides more people who work in Waikīkī a place to live in Waikīkī.”
The developer anticipates a two-year planning and predevelopment process which includes site and impact studies, archaeological fieldwork, and community engagement efforts. Upon completion of due diligence, project permitting and entitlements targeted for summer 2019, the developer and property owner would then enter into a 65-year ground lease and commence construction with anticipated project completion in the latter half of 2021. Professionally managed by OliverMcMillan, the soon-to-be named project will provide ground lease revenues and economic value to support The Queen’s Health Systems and their mission.
In Honolulu, to date, with the completion of Pacifica Honolulu and Symphony Honolulu, Brookfield Properties has provided 224 for-sale Reserved Housing units in Kaka’ako, representing 36% of the total 617 completed for-sale reserved units built since HCDA started its for-sale Reserved Housing inclusionary affordable housing program in 1987.