The developer of a planned $165 million midrise residential project in Hawaii Kai announced Monday it has secured $100.7 million in financing.
The proposed 269-unit rental apartment complex, known as 7000 Hawaii Kai, will be built on a site representing one of the few remaining opportunities to build homes in the East Oahu neighborhood.
The repeatedly stalled development has undergone different concepts — and names — with different developers in recent years.
Luxury condos were first proposed on the site and an adjacent 5-acre parcel, but construction never started as planned in 2010 when developer Mike Klein ran into trouble over grading and dealing with archaeological features on part of the site, as well as satisfying the city’s affordable-housing requirements.
A South Korean company that invested in the project, Hanwha Engineering & Construction, ousted Klein and then devised a new plan.
Sales were relaunched in early 2011, followed by a groundbreaking ceremony in October 2011. But two months later, Hanwha abruptly stopped work and refunded buyers’ deposits. The company said it was a "temporary" suspension because a financing loan fell through.
Earlier this year Hanwha hired local development and consulting firm Avalon Group to rework the plan. Avalon is acting as the developer for Hanwha, which still owns the land. Bank of the Ozarks provided $67.25 million in financing and iStar Financial Inc. put in an additional $33.4 million for the project.
"The third time’s a charm," said Christine Camp, Avalon’s president and chief executive officer. "Here we are on our third try. We finally broke ground on the building. At this point it’s permanent. We’re very excited because now we have the security of funding to finish the project as planned. Unlike a lot of high-rise projects being constructed, this is really built for area residents. We’re priced and designed for local families."
Avalon broke ground in October on two 10-story buildings composed of two- and three-bedroom units after scrapping a prior plan for 242 condominiums.
Most units are projected to rent from about $2,200 to $3,700 a month. The project will include a swimming pool, fitness center and yoga studio, library, meeting room and business center.
Hanwha is financing the balance of the project, Camp said.
There also will be 54 units reserved for households earning no more than 80 percent of the median income in Honolulu, or $61,350 for a couple and $76,650 for a family of four, to satisfy a city requirement to provide affordable housing.
Monthly rent for these units would be no more than $1,820 for a two-bedroom unit or $2,682 for a three-bedroom unit under city guidelines.
The project, set on a 3.8-acre site at the intersection of Keahole Street and Hawaii Kai Drive overlooking the Hawaii Kai Marina, is slated for completion in summer 2016.
