A&B Properties, Inc., a subsidiary of Alexander & Baldwin, Inc. (NYSE:ALEX) (A&B) has executed an option agreement to purchase a development block in Kaka‘ako from Kamehameha Schools, on which A&B will initiate planning for the future development of a residential condominium tower. The property is located within Kamehameha Schools’ 29-acre Kaiaulu ‘o Kaka‘ako master plan, a plan that when completed, will offer a diverse community to live and work in and reflect Kaka‘ako’s long tradition of innovation, hard work, good friends and good times.
The property fronts Ala Moana Boulevard and is bordered by Keawe, South and Auahi streets. The site, formerly home to Comp USA, is adjacent to Kamehameha’s recently announced 60,000 square-foot specialty retail and village center, and would benefit from Kamehameha’s planned street-level improvements along Keawe Street. The property is entitled for high rise residential development, but may also include commercial space for businesses to serve the neighborhood. A&B expects its pre-development efforts will take several years and will not have any near-term impact on the existing tenants at the property.
A&B recently announced the opening of sales for Waihonua at Kewalo, its newest residential condominium project, located between Ala Moana Shopping Center and Ward Centers. “We are very pleased with the market response to Waihonua and look forward to bringing this product to market in the near future. The project with Kamehameha Schools is intended to follow the completion of Waihonua, and will allow A&B to continue its development of high quality residential communities within Honolulu’s urban core,” said Christopher J. Benjamin, president of A&B Properties. “The opportunity to work with Kamehameha Schools in Kaka‘ako is consistent with A&B’s strategic objective of securing superior projects in Hawaii that diversify our portfolio of residential, resort and commercial developments on the neighbor islands.”
The former Comp USA site is intended to be the first residential tower development within Kamehameha Schools’ Kaiaulu ‘o Kaka‘ako master plan, which was approved by the Hawai‘i Community Development Authority in September 2009. “Kamehameha has long envisioned a 21 st century neighborhood that brings excitement and comfortable living in an urban setting,” said Paul Kay, Kamehameha’s director of commercial development. “For our master plan vision to be realized, we need a proven community developer, and A&B Properties is the perfect choice.”Kamehameha is currently converting a former office building at 680 Ala Moana Boulevard into 54 affordable and uniquely designed rental apartments. The units will be ready for residents later this year.