New Kapiolani high-rise in development

A new addition to Honolulu’s skyline is getting ready to rise.

The developers of a planned 43-story residential condominium and hotel high-rise called Sky Ala Moana held a blessing and groundbreaking ceremony Wednesday for the estimated $510 million project.

Demolishing a trio of two-story commercial buildings on the site at 1388 Kapiolani Blvd. makai of Walmart and mauka of Ala Moana Center should happen in December or January after environmental hazards are removed from the complex known as the Kenrock Buildings.

Construction of Sky, which involves two towers connected to one mid-rise structure with parking, an amenity deck and ground-floor retail space should be completed in 2022.

The project is one of several condo towers planned or under construction within a couple of blocks of the site.

Neighboring projects include The Central Ala Moana condo tower under construction just makai of the Sky site, and Azure Ala Moana on Keeaumoku Street immediately Diamondhead of Walmart.

Just Ewa of Walmart, Hawaii City Plaza is under construction on Sheridan Street. And Hawaii Ocean Plaza, a condo tower project that also includes a hotel component, is planned on the Ewa side of Sky.

Construction of Sky is ahead of schedule, according to Christine Camp, CEO of local development firm Avalon Group heading the project, in part because of a good response from buyers interested in 390 market-priced condos in Sky’s west tower.

About 72% of these units, or 281 condos, have been sold since a sales gallery opened in April.

“We’re trending a lot faster than what we originally projected,” said Timothy Lee, CEO of JL Capital, a Honolulu-based investment firm and development partner with Avalon on the tower. “The reception’s been awesome for us.”

Two other primary components of the tower are 300 hotel rooms on the upper floors of the east tower, which the developers aims to sell to another entity for operation, and 84 moderate-priced residential condos on the lower floors of the east tower that satisfy a city affordable-housing requirement tied to waivers allowing Sky to be higher and more dense than standard zoning rules permit because the project is close to a planned city rail station at Ala Moana Center.

Camp said she is waiting for city approval of prices for the affordable homes and hopes that these units, which are reserved for residents who earn no more than 120% of the median income in Honolulu, will be available for sale by the end of the year. Some of these homes also are reserved for households earning no more than the median income.

The median household income in Honolulu is $84,400 for a single person, $96,400 for a couple and $120,500 for a family of four.

Prices for the 390 market-priced units range from $568,800 to $873,800 for one-bedroom/one-bathroom units with 519 to 574 square feet of living space, and $785,300 to $1.3 million for two-bedroom/two-bathroom units with 801 to 901 square feet of living space.

Some buyers of these units turned out to see Wednesday’s ceremony, including Matt Suzawa, a 37-year-old hairstylist who intends to sell his one- bedroom Royal Capital Plaza condo in Kakaako and move into a two-bedroom Sky unit.

“It’s kind of an upgrade for me,” he said. “I”m glad they’re getting started.”

Camp, who thanked project partners and city government officials for all their help making Sky possible, also thanked unit buyers.

“You signed those sales contracts,” she said. “You provided your deposits because you believe in us. And therefore, we’re going to do the best job we can to provide you your home. It’s going to be an amazing investment and home for each buyer and a great addition to this neighborhood, I promise you.”