Jack Tyrrell specializes in Kakaako, Honolulu, Hawaii luxury condo projects.

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More homes sold on Oahu in May — and faster, Locations says

ala moana beach park anaha waiea

Pacific Business News reported on May's real estate sales statistics.  Highlights for us include the increase in the median price of a condo compared to May 2016, and a 12% increase in condos sold in May 2017 over May 2016.  Read more below:

Sales of single-family homes and condominiums on Oahu rose by double digits in May, as prices posted single-digit gains, according to statistics release Monday by Honolulu real estate firm Locations.

There were 376 single-family homes sold last month, a 12 percent increase from 335 homes sold in May 2016, Locations said. The median price of a single-family home in May was $750,000, which was 4 percent higher than the median price a year ago, which was $719,000.

The median price of a condominium last month was $407,000, which was 9 percent higher than the median price in May 2016, which was $375,000. Condo sales rose by 12 percent in May to 545 units sold, from 488 units sold during the same month a year ago, Locations said.

Locations noted that the number of homes on Oahu available for sale has been at historically low levels for five years. While the number of new listings increased last month, homes are selling faster, with the average days on market dropping to 16 days for single-family homes and 15 days for condos.

“The Oahu real estate market continues to strengthen in 2017, with steady demand exceeding the available inventory, driving prices above asking and reducing days on market to record lows,” Locations CEO Scott Higashi said in a statement. “In the current real estate environment, buyers should partner with experienced agents to ensure fair asking prices and to stay informed of new listings.

"Sellers will likely continue to see steady growth, as the market is keeping selling prices within reasonable margins, without the double-digit jumps we have seen in past markets,” he said.

The Honolulu Board of Realtors is also scheduled to release its statistics this week. The statistics from the board and Locations both use Multiple Listing Service data, but the two organizations differ on how they compile the data.

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6 Key People for Your Real Estate Investing Dream Team, Creonline.com

When you want to start investing in real estate, it can be overwhelming to think of where to start.  In my opinion, it all starts with a great team you can trust.  This is a great article breakdown from Creonline.com on who you need for your real estate investing team, but I would like to expand on the Realtor's role.  As a realtor with decades of experience, it has always been important to me to really sit down and learn more about what my client needs, find the best opportunities they may not be finding themselves, and to get them the best.  What you really want from your Realtor, and what I pride myself on, is serving the customer fully. Read more below:

You know the old saying, Behind every great leader is a great team… Well, it’s true.

Ask the world’s most successful business people – including real estate investors – for their secrets and there’s a huge chance that all of them will list “the right team” as one of the biggest factors to their success.

No one who’s truly successful does it all himself.

If you want to catapult your real estate investing business to the next level and find the kind of financial and professional success you’re looking for, you need to assemble a team of experts to support you on the way.

Here are the six people you need to hire to assemble your real estate investor’s dream team and put you on the path to real success…

Realtor

The first person you’ll need to assemble your real estate investor’s dream team is a Realtor. Your Realtor (or Realtors, depending on the size of your operation) is the person at the front lines of your business. She will manage the acquisitions and sales of properties within your investment portfolio.

Because they work in a commission-driven business, your Realtor will work harder for you knowing there’s a handsome commission coming her way at the end of the deal. Offering competitive commissions will ensure that you’ll be the first to hear when she has an amazing property or investment opportunity.

Contractors

The next person – or in this case, people – you need on your dream team are contractors. Contractors are the people who are going to, quite literally, build your business from the ground up, handling all the construction, design, and renovations of your properties.

Having a talented and reliable team of contractors can be a game-changer for a real estate investor – they can help you demand higher rents, flip properties quickly, and protect the value of your investment.

Even if you have the skills, trying to handle the work of a contractor yourself is time consuming.

It will end up pushing back the timelines for all your investments, so it’s definitely something you’ll want to hire out.

Ask colleagues for recommendations. You want to find someone who’s reliable, does high-quality work, and with whom you can build a long-term relationship. Typically, contractors will offer deals to owners and investors that give them a steady stream of projects.

Attorney

In a perfect world, you wouldn’t need any legal advice or protection. But we don’t live in a perfect world, so it’s essential that you have an attorney on your team to handle all the legal matters related to your properties and investments.

You’ll want to hire an attorney that specializes in real estate. He’ll be able to handle the ins-and-outs of the buying and selling process, handle joint ventures with partners, and implement the proper legal structures and processes you need for your business to run smoothly. A great real estate attorney will be able to advise you on how to best protect your assets.

Lender

It goes without saying that in order to assemble a real estate investor’s dream team, you need a lender. Unless your bank account rivals Bill Gates’, you’re going to need to a lender to put up the capital you need to purchase your properties.

Depending on your needs, there are a few types of lenders to choose from. You can go with a traditional lender, like a mortgage representative at a major bank (think Chase or Wells Fargo), which might have some corporate hoops to jump through but can offer really competitive rates on your loan.

You can use a hard money lender, someone who specializes in working with investors to flip properties. Hard money loans are usually a lot faster and easier to secure, but they have higher interest rates and are generally more expensive.

Your last option is to go after a private lender. This is basically someone who’s looking to get his foot in the door with investing and wants to loan you the money to get your project off the ground.

A private lender could be a friend, a family member, a colleague or just a person you know who has extra money they’re looking to invest.

Whatever the case, it can be easier to negotiate with private lenders since there’s no company red tape to get through.

Just make sure that if you’re borrowing from someone you have a personal relationship with, you’re both clear on the terms of the loan and the date by which you need to pay the money back. You don’t want to risk losing a relationship over an investment.

Mentor

If you want to get from where you are to where you want to be quickly and (relatively) painlessly, it’s in your best interest to find a guide to show you the way. Working with a mentor can save you huge amounts of time, energy, and money as you’re launching your real estate investing business.

Working with an investor who’s been in your shoes and has successfully navigated his way through the sometimes tumultuous waters of the real estate investment game is invaluable. He or she can save you from making costly mistakes and give you insights into things you didn’t even know you needed to know.

Identify someone in your niche who’s built the type of business you aspire to have, and ask him out to coffee to see if he’d be willing to let you pick his brain.

Property Manager

Finally, if you decide you’re going to hold onto your investments as rental property, you’ll want to hire a property management company. Having the right property manager is invaluable, and will make property ownership immeasurably easier and less stressful.

Property management is incredibly time consuming and trying to manage the process yourself will inevitably lead to things falling through the cracks and tenants becoming disgruntled or dissatisfied.

Property managers handle all the details related to your tenants and property, so you can focus on the big picture – your investment portfolio.

Just like any other leader or business owner, you need a solid team behind you in order to take your real estate investment business to new heights.

With these six members, you’ll be well on your way to dominating the real estate investment industry.

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Bill Ackman Highlights Howard Hughes Corporation at Sohn Investment Conference

Bill Ackman speaking at the 22nd Annual Sohn Investment Conference on May 8, 2017. Photo: Heidi Gutman | CNBC

Bill Ackman speaking at the 22nd Annual Sohn Investment Conference on May 8, 2017. Photo: Heidi Gutman | CNBC

The annual Sohn Investment Conference in New York City brings together Wall Street's top investors and fund managers, as they take the stage to share their views and ideas about investing. Wall Street Journal has called it "The Superbowl of Investing Conferences."

During the most recent conference, held on May 8, 2017, American investor, hedge fund manager, billionaire and philanthropist Bill Ackman took the stage to pitch The Howard Hughes Corporation. Ackman is the founder and CEO of Pershing Square Capital Management and a long-time investor in the company.

Investing website The Motley Fool summarizes Ackman's argument in favor of Howard Hughes. Hughes generates income from real estate sales, operating income for leases, and it reinvests back into the property and improves land values, it brings in new residents, new commercial leases, the demand goes, and as the prices rise, it's a little bit of a virtuous cycle. Ackman's bottom line point was, at about $122 a share for Howard Hughes (which was the price before he made the presentation), he believed an investor was getting essentially the entire business of Howard Hughes, plus, the Seaport District in Manhattan, one of the premiere spots in Manhattan that Hughes also owns. His comments immediately sent shares higher, with the stock trading up about 3.7 percent after he spoke.

"I think this is one of the most attractive times in the history of the company to invest," Ackman said of the company.

Listen to Bill's talk online here: https://13245.wistia.com/medias/03dfqh85lt

And, for more information, visit Howard Hughes' Investor Relations page online here: http://investor.howardhughes.com/phoenix.zhtml?c=241177&p=irol-irhome

Media outlet Architectural Digest recently named Ward Village the "Best-Planned Community," praising the development for its design, materials and location.

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Architectural Digest: Ward Village Is the Best-Planned Community in the U.S.

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Architectural Digest had a great feature on Ward Village - the Best-Planned Community in the COUNTRY! We couldn't agree more. From its architecturally unique buildings to its sense of community, Ward Village really is the best place to live, work, and play. 

Read the article, below:

The Howard Hughes Corporation is no newcomer to the master plan. Since the 1950s, the company has overseen the development or expansion of some of the country’s best communities, including Summerlin, Nevada (named after Hughes’s grandmother, Jean Amelia Summerlin); The Woodlands, Texas, which boasts 143 parks and 212 miles of nature trails; and Columbia, Maryland, 50 this year, celebrated for its social and economic diversity and where mailboxes arranged in groups, rather than on individual houses, are meant to encourage inter-neighbor mixing (and do). But something was missing. And that something was a beach.

Planned communities have a reputation for being aesthetically restrictive prefabricated design, with people telling you what color you can paint your house. Beach towns, meanwhile, have never been particularly known for their forward-thinking architecture. But 60-acre Ward Village, in a former Honolulu warehouse district, was made for design nerds—and beach bums. Five mixed-use towers, within walking distance of the Ala Moana Bowls and Kewalo Basin, are designed by some of the country’s best architects. It also presents the first Hawaii project for most of them, including Richard MeierPeter Bohlin, and Jeanne Gang, with interiors by Tony Ingrao. The Vladimir Ossipoff-designed 1960s modernist IBM building, meanwhile, serves as a sort of town center, renovated by Woods Bagot to be heavy in local materials, like lava stone, and feature traditional Hawaiian motifs on the floors and walls both inside and out.

“An appreciation of the arts is at the core of our identity,” says Nick Vanderboom, senior VP of development at the Howard Hughes Corporation. He points to sculpture by British artist Tony Cragg throughout the village; public art on an active construction barricade as curated by Ward Village’s Ke Kilohana Art Gallery; and regular installations by 87-year-old Japanese artist and sculptor Yayoi Kusama, whose latest piece for Ward Village, an installation currently on the front lawn of the IBM building, is part of the inaugural Honolulu Biennial, sponsored by Ward Village and held through mid-May.

And for those who don’t care about art and architecture—though even the least aesthete homeowners get a little excited by the prospect of living in a place designed by the architects who did the Fifth Avenue Apple store [Bohlin Cywinski Jackson], says Vanderboom—there’s plenty more to appeal. Like free yoga in the common, a farmer’s market, hula performances, and an outdoor movie theater already hailed as the best in the state, all of it walkable. Also: a Nobu and a Whole Foods. “It’s in fact one of the only places in the state you can walk to meet most of your daily needs; walkability is unique in Hawaii,” says Vanderboom. And while art and design is all well and good, ultimately, says Vanderboom, “People come here for the lifestyle.”

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Honolulu construction costs increasing at slower rate, report finds

Photo: Honolulu Civil Beat

Photo: Honolulu Civil Beat

Our state is notorious for its high construction costs; however, Pacific Business News has recently reported the rate at which these costs increase has recently slowed down. Read more below:

Construction costs in Honolulu were the second-highest in the nation during the first quarter, but Hawaii’s largest city had the smallest annual increase in costs among 12 cities monitored by Rider Levett Bucknall for its first quarter construction cost report.

Honolulu is second only to New York in the company’s comparative cost index — a year ago, the two cities were in reverse. But while New York experienced a 3.88 percent increase in costs between January 2016 and January of this year, Honolulu saw an increase of less than 0.74 percent, the lowest increase among the 12 cities tracked in the report.

Rider Levett Bucknall uses current, market-specific pricing for labor and materials, as well as overhead costs and local fees to compile the quarterly report, which found that nationally, costs increased by an average of 5.1 percent. San Francisco had the highest increase in costs from last year, a 14.4 percent increase in the index, followed by Los Angeles at 8.4 percent.

The report also placed Honolulu at the top of the bell curve for the construction activity cycle, well ahead of the other cities but not yet headed for a downturn.

The report said that nationally, construction-put-in-place in January was estimated at a seasonally adjusted annual rate of $1.18 trillion, which was 1 percent below the December estimate.

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Hawaii in Top 10 Most Fun States in the Nation

Photo: Jack Tyrrell and Company

Photo: Jack Tyrrell and Company

Today, Pacific Business News reported on Wallethub's new study putting Hawaii in 10th place of the most fun states in the nation! We couldn't agree more. With its endless outdoor recreation possibilities to thriving foodie scene, we really feel #luckywelivehawaii.

Read the report, below:

Hawaii is one of the 10 most fun states in the United States, according to a new report.

Personal finance website WalletHub said it compared the 50 states across 22 key indicators of a "jolly good time that won’t break the bank." Those indicators range from movie costs to accessibility of national parks to casinos per capita.

The Aloha state scored 41.30 out of a possible 100 points.

Hawaii came in eighth in the entertainment and recreation category, and 19th in the nightlife ranking. The state is also the one with the fewest fitness centers per capita in the country.

The state providing the most fun is Nevada, followed by South Dakota and Colorado. At the bottom of the list is Mississippi with a score of 14.52, according to WalletHub.

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Howard Hughes could develop parcel across from Symphony Honolulu condo tower

*Note: Rendering is of Symphony Honolulu

*Note: Rendering is of Symphony Honolulu

Duane Shimogawa of Pacific Business News has learned that the Howard Hughes Corp. have begun the the first steps of looking into development opportunities for its one-acre parcel across the street from the relatively newly completed Symphony Honolulu on Kapiolani Boulevard. The developer has approached the Oahu Island Burial Council to look into "archaeological aspects about the property." Jack in the Box currently occupies the parcel.  Read more below. And, to find more information, including meeting agendas, from the Oahu Island Burial Council, visit their website online here.

The Howard Hughes Corp. is looking into development opportunities for its one-acre parcel across from the Symphony Honolulu condominium high-rise tower, Pacific Business News has learned.

The Texas-based developer recently went before the Oahu Island Burial Council in an effort to look at the archaeological aspects about the property at the corner of Ward Avenue and Kapiolani Boulevard. The property is currently occupied by a Jack in the Box and the Galiher Law building.

The Howard Hughes Corp. is looking into development opportunities for its one-acre parcel across from the Symphony Honolulu condominium tower. This rendering shows the Symphony Honolulu condominium, which is being developed by San Diego-based OliverMcMillan.

Todd Apo, vice president of community development for Howard Hughes, recently told PBN that it currently has no plans for the redevelopment of this parcel.

“The effort at the burial council is to properly consult with them on a plan for the archeological work that will be done in the future,” he said.

Ancient human skeletal remains, or iwi, have been discovered at The Howard Hughes’ 466-unit Aeo mixed-use condominium site in the Honolulu neighborhood of Kakaako that includes Hawaii’s flagship Whole Foods Market, as first reported by PBN.

Apo told PBN that there was an inadvertent find between the exterior of the building and the sidewalk.

He said at the time of finding the iwi, the developer did stop work in the immediate area until it was cleared by the cultural descendants and state Historic Preservation Division.

“Given that the find was outside the exterior wall, it did not impact work on the rest of the project,” Apo said.

Howard Hughes (NYSE: HHC) owns the 60-acre Ward Village master-planned community in the Honolulu neighborhood of Kakaako, which includes the Aeo, Waiea, Anaha, Ke Kilohana, Ward Gateway and Aalii mixed-use condo projects, as well as its Ward Village Shops.

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A surge in Oahu pending sales signifies strong April real estate activity

Looking at numbers from March 2017, Honolulu Board of Realtors predicts continued strong market activity into this new month of April 2017. Read more from Pacific Business News:

According to the Honolulu Board of Realtors, the median price for single-family homes on Oahu increased 3.7 percent last month to $752,000, while pending sales surged 30 percent.

Locations also released its monthly residential real estate figures this week, reporting a slightly higher figure of $755,000 for single-family homes.

Pending sales surged in March, increasing 30.2 percent to 535 for single-family homes and 23.6 percent to 796 for condominiums, signifying that this strong market activity will continue in April.

HBR’s report shows that the number of sales for single-family homes increased 4 percent to 309, from 297 last year, while condo sales increased 0.8 percent to 495. The median price for condominiums increased 3.9 percent in March to $400,000.

Units also sold at a faster clip in March, with single-family homes on the market for 16 days, down from 18 days last year, and condominiums on the market for 15 days, down from 19.

“Oahu median home prices and sales volume are holding steady, and properties are selling briskly, as indicated by the relatively short days on market,” said Sue Ann Lee, president of the Honolulu Board of Realtors.

Pending sales surged in March, increasing 30.2 percent to 535 for single-family homes and 23.6 percent to 796 for condominiums, signifying that this strong market activity will continue in April.

“The increase in pending sales shows that there’s continued demand for housing at all price points,” Lee said. “Additionally, with the more than 37 percent increase in inventory for single-family houses and 27 percent increase for condominiums from last year, and the still historically low mortgage interest rates, potential buyers have options for their new home.”

Months of remaining inventory for both single-family homes and condos increased to 2.7 in March, a jump of 28.6 percent and 17.4 percent, respectively.

For single-family homes, the most market activity occurred between the $700,000 and $799,999 price range, while most condos sold between the $300,000 and $399,999 price range.

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Sky Ridge Estate featured in Honolulu-Star Advertiser's "Spotlight on Contemporary Island Architecture"

Photo property of Jack Tyrrell and Company, Inc.

Photo property of Jack Tyrrell and Company, Inc.

Sky Ridge Estate was featured in the Honolulu Star-Advertiser's "Spotlight on Contemporary Architecture"  on Sunday, March 5, 2017.  Find the article online here.

"The design intent for the home was to create a showcase house that takes maximum advantage of the breathtaking views. The contemporary modern design extensively utilizes concrete, steel, glass, stucco, and wood. The ultramodern finishes accent the clean, sleek design. This project was an opportunity to design a unique home that supports an upscale lifestyle, while celebrating spectacular city and Diamond Head views. The collaboration of our design team with the owner produced a home that is truly distinctive.”

View more photos of the property at https://www.skyridgeestate.com/.

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Wall Street Journal: Honolulu’s Kakaako District Is at the Center of a Building Boom

The Wall Street Journal did an excellent feature on Honolulu's Kakaako district here.  The article highlighted Waiea as the premiere example of luxury condo development underway in Honolulu.  The story not only shared the story of Waiea, but also touched on the greater Ward Village community, The Howard Hughes Corporations's dedication to respecting Hawaiian culture, and its contribution to building affordable housing.

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