Work on third Ward Village high-rise set to begin

Ward Village now has three condominium towers under construction on adjacent blocks following a ceremonial groundbreaking for the newest high-rise, named Ae‘o, on Thursday.

Howard Hughes Corp., developer of the community undergoing a shift from largely retail and warehouse use to residential and retail use, held the event on the parking lot of the former Office Depot and Nordstrom Rack stores. Ae‘o will include a 38-story glass-sided tower with 466 homes above a Whole Foods store. It’s expected to open in 2018.

“We’re excited to get underway,” Nick Vanderboom, senior vice president of development for Hughes Corp., told an audience at the ceremony that included Ae‘o unit buyers, real estate agents and members of the development team.

Technically, there won’t be much construction taking place on the site until next month because Office Depot is still clearing out the store it closed last month. But the groundbreaking represents a $390 million step toward fulfilling the developer’s master plan to erect up to 22 residential towers on 60 acres formerly known as Ward Centers.

No one lives at Ward Village yet, but Robert Tangonan, a retired state probation officer, said he’s looking forward to being among the initial wave of new residents.

Tangonan, 71, said his home in the Royal Summit neighborhood of Aiea is “too far from the action.”

Paul Herran already lives in a Kakaako high-rise with his wife, Mai, and their nearly 2-year-old daughter. The family rents a unit in the nearby Nauru Tower but saw Ae‘o as an opportunity to buy their first home.

Herran said a city rail station that is planned to be near Ae‘o will make the airport a 7-minute trip away, while going to the grocery store will take a few seconds in an elevator.

“I really appreciate convenience, and having Whole Foods just a couple floors below is a huge plus,” he said.

David Striph, head of Texas-based Hughes Corp. in Hawaii, said it was great to be able to begin the store’s construction — 10 years after plans for a flagship urban Honolulu Whole Foods store were announced for the Ward neighborhood, and before Hughes Corp. acquired Ward Centers. The earlier plan was abandoned after the property’s former owner, General Growth Properties Inc., ran into financial and construction difficulties.

“It’s fantastic to have Whole Foods finally get started,” Striph said. “It’s been a long wait. … It’s a great day at Ward Village as we continue to create a community that will enhance the lives of not only the people that are going to live here, but also the people that are going to shop here, dine here and come here for their entertainment.”

Hughes Corp. began sales for Ae‘o in July. Prices range from $405,016 for a studio with 409 square feet of living space to $2 million for a three-bedroom unit with 1,331 square feet of living space. The average is about $1 million and 836 square feet.

The company said in November that it had sold 167 units, or about 36 percent of the inventory. Hughes Corp. is expected to release an updated sales count next month as part of a quarterly financial report but declined to provide an update Thursday.

The two towers already under construction at Ward Village are Waiea, an ultraluxury condo that broke ground in mid-2014 and is up to about the 35th story, and Anaha, which broke ground in late 2014 is is up to about the 18th story.

Hughes Corp. has two other towers approved for development that are likely at least a year away from breaking ground.

One, called Gateway, is another ultraluxury condo, where sales began in July. This tower is slated to replace part of Ward Warehouse, though construction is not planned this year. Hughes Corp. has not disclosed sales for the 125-unit project.

The other approved tower is Ke Kilohana at 988 Halekauwila St., a 424-unit condo where sales for the moderately priced units are expected to begin later this year.