Today's Pacific Business News reports that 35.8% of The Howard Hughes Corporation's Aeo project is now contracted for sale. Construction on the project, which will be atop Oahu's future flagship Whole Foods Market store, is set to begin in March 2016.
Meanwhile, as of October 20, 2015, 89.1% of the 174 units in Waiea and 85.2% of the 317 units in Anaha were contracted for sale, respectively. Read more updates in the article by Darin Moriki below:
As construction continues on The Howard Hughes Corp.'s Waiea and Anaha residential towers in Ward Village, close to 35 percent of all units in the Texas-based developer's nearby Aeo mixed-use high rise are under contract for sale ahead of its projected March 2016 construction date, according to third quarter financial reports released to investors on Monday.
Of the estimated 466 units in Ward Village's Aeo condominium tower, approximately 35.8 percent of those units, or 167 individual units representing just over one-fourth of the total residential space available, were contracted for sale as of Oct. 20. Initial sales for the units in Aeo, which will include a 54,000-square-foot Whole Foods Market flagship store, began in July, when more than 110 owner-occupant units were sold over four days to buyers with local addresses as a part of a public lottery system.
The Howard Hughes Corp. reported on Monday that close to 35.8 percent of the residential units in Ward Village's Aeo mixed-use tower were under contract for sale, as its anticipated March 2016 construction date nears.
Last month, The Howard Hughes Corp. (NYSE: HHC) said that it would start construction on 389,000-square-foot residential tower in March and complete the project in two years.
"This tower was designed with unit sizes averaging approximately 836 square feet — smaller than the average 1,687-square-foot unit size for Waiea and Anaha," The Howard Hughes Corp. explained in their quarterly report. "We believe there is strong demand for smaller unit sizes having a quality similar to our other offerings, resulting in an overall purchase price that is more affordable to a larger segment of the market."
Although the project budget for Aeo is still being finalized, The Howard Hughes Corp. estimates that it has incurred $14.4 million in pre-development costs as of the end of September.
Meanwhile, The Howard Hughes Corp. entered into 12 sales contracts between July and October for condominium units in Anaha and Waiea, which are now being constructed and slated to be complete in mid-2017 and the end of 2016, respectively.
As of Oct. 20, approximately 89.1 percent of the 174 units in Ward Village's Waiea luxury condominium tower were contracted for sale, representing 83.7 percent of all the residential space available for sale. Of the estimated $403 million needed to construct it, The Howard Hughes Corp. estimates that it has accrued about $152.4 million of those development costs, as of Sept. 30.
In the nearby Anaha luxury condominium tower, 85.2 percent of the 317 units were contracted for sale, as of Oct. 20, representing 76.9 percent of all the residential space available for sale. The Texas-based developer has also spent about 20.2 percent, or $81.4 million, of the estimated $401 million needed to construct it, as of Sept. 30.
The Howard Hughes Corp. has also incurred about $13.2 million in pre-development costs for Ward Village's Gateway Tower luxury condominium complexes, which are being designed by the New York City-based Richard Meier & Partners Architects LLP firm.
"These towers will frame the main entrance of the community and planned village green and are an important element in communicating to the market our vision for a fully-developed Ward Village," The Howard Hughes Corp. executives said in their quarterly report. "With this product, we are bringing a level of product quality and overall experience never before seen in the market and pricing that sets a new peak for Ward Village. As a result, we are expecting a more measured and longer time period for absorption than at our other Ward Village developments."
Although a project budget is still being finalized, pre-sales on one of the two towers began in July. The Howard Hughes Corp. said construction of the towers will begin once the development group reaches "an acceptable level of pre-sales and financing."