Alexander & Baldwin Inc. has lined up another condominium high-rise project in Kakaako, on the site of a former CompUSA store, following strong interest from buyers in a tower the local developer is working on about a mile away.
An A&B subsidiary has acquired an option to buy the block fronting Ala Moana Boulevard between South and Keawe streets from Kamehameha Schools to develop the tower, according to an announcement from the company and the trust on Friday.
Neither party disclosed a price for the property or a timetable for executing a sale. Construction would be a few years away if the development plan moves forward.
In the meantime, used-car dealership Auto Mart USA will continue to use the property.
The envisioned tower is intended to be the first of what may be up to seven condo towers on 29 acres of Kamehameha Schools land in Kakaako slated for redevelopment, the trust and A&B said.
"Kamehameha has long envisioned a 21st-century neighborhood that brings excitement and comfortable living in an urban setting," said Paul Kay, the trust’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."
Mike Wright, executive vice president of A&B’s land development subsidiary A&B Properties, said the company is excited to help fulfill the trust’s development plan. "We’re very pleased to be working with Kamehameha Schools and being part of their vision for Kakaako," he said.
A&B anticipates developing the tower after completion of another tower in Kakaako it is pursuing near the corner of Waimanu and Piikoi streets between Ward Centers and Ala Moana Center.
This other tower, Waihonua at Kewalo, is slated to break ground by the end of this year and be finished by the end of 2014, suggesting that the start of the tower on the CompUSA site won’t happen until after 2014, though market demand and other factors could affect the timing.
Wright said there’s no timetable for beginning construction on the CompUSA site.
For Waihonua, A&B bought the land in 2010 for $16 million and began sales efforts about two months ago. Since then A&B has taken nonbinding reservations for about 200 units in the 345-unit project.
"The interest has been very strong," Wright said.
Chris Benjamin, president of A&B Properties, added, "We are very pleased with the market response to Waihonua and look forward to bringing this product to market in the near future."
Prices at Waihonua range from $375,000 to $1.9 million. Nearly half the units are priced roughly between $700,000 and $900,000.
A price target hasn’t been determined for units in the tower on the CompUSA site, though the site provides superior ocean views compared with Waihonua.
Kamehameha Schools obtained approval for its master plan from the state in 2009, allowing development of up to 2,750 homes with seven towers as well as low-rise buildings, retail and park space.
The trust is converting a former office building at 680 Ala Moana Blvd. adjacent to the CompUSA site into 54 loft-style affordable rental apartments. The units are expected to be ready for residents later this year.
Kamehameha Schools also is finalizing a design for an adjacent village center for locally owned specialty shops, entertainment, dining and community gathering. Construction on the center is expected to begin next year.
