Slated for completion in 2014, a new 206-unit, 17-story luxury condominium tower next to Nordstrom is the product of a joint venture between The MacNaughton Group and Kobayashi Group, with Howard Hughes Corp.
By Andrew Gomes, Honolulu Star-Advertiser
Shopping at Nordstrom is pricey. Living next to the luxury retailer's store in Honolulu will be, too.
Condominium units in a 17-story tower planned atop Nordstrom's six-story parking garage at Ala Moana Center are going to be priced as high as $9 million — a record for a new high-rise condo in Hawaii.
The developer of the 206-unit tower dubbed ONE Ala Moana released project details Monday, including prices, renderings, amenities and a development timetable.
Sales are slated to begin by the end of the year, and if they go well construction could start by late spring and finish in 2014.
The intent to proceed with building a condo at the site was announced last year by Howard Hughes Corp., a Dallas-based developer that obtained rights to the project as part of its 2010 acquisition of Ala Moana Center owner General Growth Properties.Local developers The MacNaughton Group and Kobayashi Group partnered with Hughes Corp. on the plan for ONE Ala Moana, which will have one- to three-bedroom units with 760 square feet to 4,100 square feet of living space. Prices average $1.6 million and range from $500,000 to a little more than $9 million.
The $9 million price for penthouse units represents a record for new high-rise residences in Hawaii, according to local real estate brokers.
"It's aggressive," Myra Brandt, principal broker at residential real estate firm Kahala Associates, said of the penthouse pricing. "It'll probably be marketed as one of a kind."
Brandt said she anticipates good demand for ONE Ala Moana given its location along with unit quality and sizes, and that Asianbuyers will provide a fair share of that demand.
Hughes Corp. said its "ultra luxury" tower will feature views over Ala Moana Beach Park to the ocean, high-end finishes, common-area amenities including a private dining room with a chef's kitchen, and a concierge package with shopping and dining benefits from Hawaii's largest mall.
"ONE Ala Moana will offer a one-of-a-kind lifestyle experience with the best in luxury retail and restaurants at your doorstep," David Weinreb, Hughes Corp. chief executive officer, said in a written statement.
The Hughes Corp. partnership, HHMK Development LLC, plans to sell a significant number of units in Japan through Sotheby's International Realty affiliate LIST Co. Ltd., which is helping finance ONE Ala Moana with $20 million.
Honolulu-based real estate firm Alexander & Baldwin Inc. also is providing $20 million in development financing.
The tower was originally envisioned by General Growth, which built the Nordstrom store and a new wing for the mall in 2008 and designed the adjacent parking garage to support such a building.
Hughes Corp. partnered with the MacNaughton and Kobayashi firms in part because of their experience building luxury condo towers in Honolulu during the last real estate boom. The two firms developed Hokua in Kakaako and Capitol Place downtown. Hokua is recognized as being the first luxury condo tower built on the leading edge of that boom, and buyers snapped up units for $535,000 to $5.5 million in late 2002, before construction began.
Local brokerage firm Heyer & Associates handled Hokua sales and is handling sales for ONE Ala Moana.
Duncan MacNaughton, chairman of the MacNaughton Group, said ONE Ala Moana aims to top what was produced with Hokua.
"When we delivered Hokua to the marketplace, it surpassed everyone's expectations, and now ONE Ala Moana will set an even higher standard of excellence," he said in a statement.
Though not a strictly residential condo, another high-rise in Honolulu — Trump International Hotel & Tower — has neared the $9 million sales mark for new units.
The condominium-hotel in Waikiki sold new units for as much as $8.7 million two years ago, according to property records. One unit was resold last year for $10 million. And one unit bought for $8.6 million two years ago is on the market for $9.4 million.