Some new low-income housing in the “town center” of Chinatown is about ready for occupancy, following the conversion of second-floor space at Maunakea Marketplace.

The owner of the 30-year-old retail complex on city land is taking applications for 38 affordable rental apartments in the project dubbed Residence at Maunakea.

So far, about 150 applications have been received for apartments where monthly rent ranges from $1,075 to $1,295 for studios, $1,417 for one-bedroom units and $1,701 for two-bedroom units, according to leasing agent Avalon Commercial.

Tenant selections are being made in the order of applications received from qualified prospective renters.

Duane Shimogawa, an Avalon project manager, said the company views the project as a model that can be replicated to help address Hawaii’s chronic shortage of affordable housing.

“We have already received an enormous amount of inquiries from prospects hoping to rent a unit at this special project,” he said in a statement.

The conversion was made possible under a ground lease amendment with the city about a year ago that allowed the owner of the two-story complex to convert second-story office and retail space to residential use. A fitness room, multipurpose room and laundry room also were added.

Under the arrangement, four apartments are reserved for previously homeless individuals or families, and the other units are reserved for households earning no more than 60% of the median household annual income in Honolulu, which equates to $52,920 for a single person, $60,480 for two people and $81,600 for a family of five, which would be maximum occupancy for the biggest units.

Maunakea Marketplace was developed in 1990 by Pauahi Associates, led by Bob Gerell, on a vacant city lot under an initiative announced in 1987 by then-Mayor Frank Fasi. The 52,500-square-foot project built on an acre of land under a 65-year city lease was promoted as a new “town center” for Chinatown with grocery stalls, stores and restaurants on roughly half a block bordered by Maunakea, Hotel and Pauahi streets.

An affiliate of Michigan-based Geyser Holdings bought the complex from a subsequent owner in 2017 for about $15 million, according to property records. Geyser said it owns over $500 million worth of commercial real estate, including Poipu Shopping Village, and employs former Gov. Neil Abercrombie as its director of Hawaii operations.