HHC Obtains $372M Loan for Hawaii Residential Buildings

📅   Mon January 23, 2017 - West Edition


Business Wire photo
The $230 million Ae’o consists of a 466-home mixed-use building, anchored by a flagship Whole Foods Market.
Business Wire photo The $230 million Ae’o consists of a 466-home mixed-use building, anchored by a flagship Whole Foods Market.
Business Wire photo
The $230 million Ae’o consists of a 466-home mixed-use building, anchored by a flagship Whole Foods Market. Business Wire photo
Ke Kilohana is slated for completion in 2019, and the 424-home tower will welcome a flagship Longs Drugs to the neighborhood.

The Howard Hughes Corporation it has successfully closed two construction loans totaling more than $372 million for the development of the Ae'o and Ke Kilohana mixed-use projects currently under way in Ward Village in Honolulu, Hawaii. Both buildings have already contracted to sell the majority of their residences, with 91 percent of Ke Kilohana's homes and 57 percent of Ae'o's homes under contract.

A $143 million partial recourse facility has been obtained for the development of Ke Kilohana. U.S. Bank will serve as the agent bank and lead lender for a syndicate that includes First Hawaiian Bank, ULLICO, American Savings Bank, Bank of Hawaii, Central Pacific Bank and FNB Alaska.

The project, comprised of 375 reserved housing condominiums for local residents and 49 market rate condominiums with a flagship Longs Drugs (CVS) at the base of the high-rise, broke ground in October and is expected to be complete in mid-2019. In April, all of the reserved homes offered were under contract in less than five days after commencing sales.

A $230 million non-recourse facility provided by Bank of the Ozarks will finance construction of Ae'o, a 466-home mixed-use building to be anchored by a flagship Whole Foods Market. The high-rise broke ground in February 2016, and is expected to complete construction in late 2018.

Randy Fleisher of Hamilton Realty Finance arranged the transactions.

“With its unmatched product quality across a wide range of offerings, Ward Village continues to generate strong demand and transform into one of the leading urban master planned communities in the world,” said Grant Herlitz, president of The Howard Hughes Corporation. “These two financings are a testament to our extensive relationships with both national and local lenders and their commitment to our vision for Ward Village.”

Having contracted to sell more than 1,100 homes to date with three buildings under construction and one recently completed, the 60-acre Ward Village community is rapidly transforming into a vibrant walkable neighborhood that offers a carefully curated mix of exceptional residences, top architectural design and a diverse collection of dynamic retail experiences, including the world renowned Nobu restaurant which opened in December as part of Waiea, the first tower to welcome residents to the community. At completion, Ward Village is expected to comprise more than 1 million sq. ft. (92,903 sq m) of retail space and more than 4,000 new residences in a market where supply continues to fall short of demand for new housing.

About Ward Village

Currently under development by The Howard Hughes Corporation, Ward Village is a 60-acre master-planned community located in the heart of Honolulu between downtown and Waikiki. Along with its first residences, Waiea, Ward Village includes three additional mixed-use residential towers — Anaha, Ae'o and Ke Kilohana — that are now under construction and will continue to transform the popular shopping and dining district into a vibrant neighborhood offering exceptional residences with incredible island and ocean views and a carefully curated mix of retail experiences set among dynamic public open spaces and walkable streets.

Completed in late 2016, Waiea includes 174 residences and is home to internationally acclaimed restaurant Nobu Honolulu. Anaha, opening mid-2017, will include 317 residences and the first Merrimanʻs restaurant on O'ahu. Ae'o will open O'ahu's flagship Whole Foods Market in 2018 and will complete its 466 new homes in late 2018. Ke Kilohana is slated for completion in 2019, and the 424 home tower will welcome a flagship Longs Drugs to the neighborhood.

A fifth project, currently available for sale, is Gateway Towers on Ala Moana Boulevard that will bring the design of world-renowned architect Richard Meier to the Honolulu skyline.

The vision for Ward Village is consistent with the master plan approved by the Hawaii Community Development Authority in 2009, which allows for up to 9.3 million sq. ft. (863,998 sq m) of mixed-use development, converting into more than 4,000 residences and over one million square feet of retail space.

Ward Village is Hawaii's only LEED-ND Platinum-Certified project and the largest neighborhood development in the country to receive such a prestigious certification. Additionally, the Kaka'ako area was also recently named by Trulia as the top neighborhood with the best amenities in cities of under one million people.

For more information , visit www.wardvillage.com.