Howard Hughes Corp. earned $27 million from condominium sales at Ward Village in the third quarter, according to a financial report the company published Monday.
The Texas-based developer of the master-planned community in Kakaako said it collected $114 million from condo sales at Ward Village during the third quarter.
Hughes Corp. completed its first tower at Ward Village last year, finished a second tower last month and is still building two others.
During the quarter ended Sept. 30, Hughes Corp. reported 52 additional condo sales at Ward Village. Of those, 46 were in the upscale Ae‘o tower, which is roughly half complete at the corner of Queen and Kamakee streets.
In total, 367 of 466 units in Ae‘o had been sold though the end of September. That was up from 321 sales at the end of the second quarter.
Five sales in the third quarter were at a luxury tower called Anaha, which opened last month at the corner of Kamakee and Auahi streets. Hughes Corp. has sold 307 of 317 units in this tower.
There also was one sale at Ke Kilohana, a tower with mostly below-market prices that broke ground at the corner of Ward Avenue and Halekauwila Street a year ago and is 27 percent built. Hughes Corp. sold 375 units in this tower last year below market prices to satisfy a state affordable-housing requirement, and expects to sell the balance of 49 market-priced units over the next two years. As of Sept. 30, 13 of the 49 market units had been sold.
All the new sales made in the third quarter didn’t equate with the condo revenue Hughes Corp. reported during the quarter. That’s because the company recognizes a portion of revenue from condo sales as a tower is being built.
All four towers contributed to revenue and income in the third quarter, including two sales that closed during the quarter at the company’s year-old tower, Waiea, where the average unit price is $3.6 million. As of Sept. 30, 165 of Waiea’s 174 units had been sold.
Though Anaha opened and began welcoming its first residents last month, completing the 307 sales in that tower is ongoing and may run to Dec. 31.
Hughes Corp. also has been selling units since July 2015 but not recognizing any revenue in a luxury condo called Gateway Cylinder, and is demolishing the old Ward Warehouse retail complex to clear the way for construction of the 125-unit tower where prices range from $1.5 million to $23 million. A sixth tower, A‘ali‘i, also is planned and approved for development.
The development firm said it removed 115,191 square feet of retail space (Ward Warehouse) at Ward Village during the third quarter and said the first four towers are adding 114,500 square feet of retail. That includes a Nobu restaurant that opened at Waiea, a Peter Merriman restaurant to open at Anaha, a Whole Foods store to open at Ae‘o and a Longs Drugs to open at Ke Kilohana.
Throughout Ward Village, Hughes Corp. owns about 1 million square feet of retail space, including Ward Centre. Under the company’s master plan, it anticipates building up to 4,300 homes in 16 towers and about 1 million square feet of retail on the 60-acre property.
Hughes Corp. also has major real estate operations in several mainland cities. Overall, the company reported earning $10.5 million on $259 million of revenue during the third quarter, up from $8 million in earnings on $242 million of revenue in the same quarter last year.
