Reimagining Downtown Honolulu

Real estate developers often face public discontent when investing in building or revitalizing neighborhoods. Why? Mainly because of Hawaii's high cost of living and affordable housing crisis. However, it's not just about money; it's also about breathing new life into a place. While profitability is crucial, including affordable housing and making thoughtful improvements can have a profound impact on a community. If developers can enhance safety, security, and amenities that attract residents while respecting the community's needs, a new master-planned community can flourish.

This aspiration for revitalization is especially clear in Downtown Honolulu. Currently, Honolulu has two master-planned communities in progress, Ward Village and Our Kakaako, with Christine Camp, President and CEO of Avalon Group, envisioning a third, which would significantly enhance the metropolitan area.

Downtown Honolulu is busy with activity during the day, known for its vibrant business scene. However, as night falls, concerns about crime often deter residents from venturing out. Despite ongoing discussions about addressing these challenges and enhancing the district, the future has remained uncertain for years. Factors such as Hawaii Pacific University relocating its campuses from downtown to Aloha Tower and Restaurant Row, as well as the closure of Walmart, have added to this sense of uncertainty. However, with Christine's new vision and the adoption of an adaptive reuse strategy, Avalon has successfully garnered investor support for the idea of revitalizing Downtown Honolulu.

Avalon's first major project in Downtown Honolulu is currently underway, previously known as Davies Pacific Center but rebranded as MODEA. Their sales release went live in February, generating significant interest with studios and more affordably priced units being swiftly reserved. Despite their short-term strategy, Avalon has taken further action by acquiring the old Walmart building in downtown and planning to transform it into the area's epicenter. Here's what we know:

• The old Walmart building sold for $38.25M. It includes 87,000 square feet of store space and 454 parking spaces.
• The initial plans include retail and business space, a dog park, pickle-ball courts, and new residential units above the parking garage.
• The residential units should offer a blend of both affordable and market-priced options.

Multiple developers are investing into Downtown Honolulu

Displayed on the map below are just a few of the many investments currently underway in Downtown Honolulu. Alongside notable projects like MODEA and Avalon's acquisition of the old Walmart building, other developments include The Residences at Bishop Place, the AC Marriott Hotel, and an affordable housing initiative at 1060 Bishop St. Additionally, though not shown in the map, Avalon Group is in the process of revitalizing a three-building complex owned by Hawaii Pacific University, transforming it into their new Science Hall.

While there are other ongoing developments, these projects suggest a promising vision for the revitalization, restoration, and reimagining of Downtown Honolulu.

Avalon Group hasn't released official plans for their Walmart project yet. However, if you're intrigued by the idea of living or being a part of the revitalization of Downtown Honolulu, we suggest reaching out to Shay at (808) 398-7429 to schedule a tour of MODEA's sales office. See firsthand the magic behind an adaptive reuse strategy and how it can transform existing spaces into something that feels brand new.

An Update on Kaulu by Gentry

Yesterday, we ventured down to Kalaeloa to check on the progress of Gentry's Kaulu project. As anticipated, the initial phases of Increment were nearing completion, and Gentry is gearing up for the next phase. As of 3/12/24, all single-family homes have been sold out, so it's primarily market-priced and reserved housing townhomes that are still available for sale. Prices range from $610k to $780k.

Below are some photos from our visit yesterday, providing a glimpse of Kaulu's development progress.

While there are no promises, the next round of inventory at Kaulu is expected to go on sale in either April or May, but it could be as late as early June.

Inventory