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An Australian property services company announced plans Tuesday for developing a gated community with 353 homes in Makaha Valley on land zoned for agriculture.
The project dubbed Malulani Estates calls for producing homes with ocean or golf course views and selling them for $325,000 to $800,000.
DTZ, the property services company, announced the plans in a news release, saying it was retained by project developers Swiss Financial Group and MMK Global to raise $25 million to build roads, sewers and other infrastructure on the 61-acre site along with a pool and clubhouse.
DTZ said MMK is an experienced developer that has completed similar projects throughout the United States.
Information about MMK or Swiss Financial wasn’t provided, and it wasn’t evident where the companies are based or what their experience involves. DTZ representatives could not be reached for comment.
The Chelsdan Co., a Stockton, Calif.-based contractor involved in custom-home building, said on its website it is developing Malulani with MMK.
Malulani will include 211 affordable homes and 142 prestigious custom homes adjacent to Makaha Resort Golf Club, according to the Chelsdan website. The firm said the property is an ideal site for a mix of family and vacation housing that includes the potential for million-dollar homes.
A Chelsdan representative couldn’t be reached for comment Tuesday.
DTZ said it expects to have the project financed by the end of the year.
"The project is quite compelling," Marc Civitillo, a DTZ vice president, said in a statement.
DTZ called the Malulani site the last developable tract in Makaha Valley.
According to the city Department of Planning and Permitting, the site is zoned for agriculture. It wasn’t clear from the news release whether the developers intend to seek a zoning change or develop an agricultural subdivision allowed by state law under which residential communities have been developed often with loose ties to farming, stabling horses or other allowed farm uses.
Two members of the Waianae Coast Neighborhood Board said a plan for Malulani hasn’t been presented to the board.
Board member Al Frenzel questioned the appropriateness of building homes on land zoned for farming.
"How do they expect to build there when the property is zoned ag?" he asked.
According to property records, Utah-based Makaha Valley Road LLC acquired the property at a foreclosure auction in May for a value of $500,000. BBP Makaha LLC, another Utah company, bought the site in 2007 for $950,000 but lost the land at auction after a foreclosure lawsuit was filed by a third Utah company, Private Capital Group Inc.
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