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

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luxury real estate


Irongate to sell Waikiki penthouses by the piece



Developer Irongate has set its sites on a lofty new expansion: The company is converting the penthouse floors in the Diamond Head Tower of the Ritz-Carlton Residences, Waikiki Beach, into an exclusive fractional-­ownership club.

Irongate announced plans to sell 84 shares in its new Diamond Head Club at a party Tuesday night to celebrate the successful fall opening of its most recent tower, which added another 245 ocean-view residences to Ritz-Carlton’s Waikiki offerings. Combined with the ‘Ewa Tower, the 552-unit project is the largest Ritz-Carlton Residences in the world.

But that distinction wasn’t enough for Irongate Chairman and CEO Jason Grosfeld, who has found a way to add even more exclusivity to one of the state’s highest-end projects. The private club will consist of six penthouses perched on the 37th and 38th floors of the 350-foot Diamond Head Tower. The two- to four-bedroom penthouses, ranging from 2,100 to 4,125 square feet, come with exclusive use of a 5,400-square-foot rooftop lanai with a 270-degree ocean and mountain view that stretches from Diamond Head to Barbers Point. They also have access to their own club concierge team and all Ritz-Carlton amenities.

Grosfeld said the club’s interior also will surpass any of the company’s projects to date, which in Hawaii also includes the Trump International Hotel Waikiki.

“It will blow people away,” Grosfeld said.

Grosfeld is referring to the project’s aesthetics, not its price point. Diamond Head Club owners will have a fee-simple interest in a portion of the penthouse, which is a fraction of what it would cost to buy the whole property.

Penthouses sold for $7 million to $20 million for the ‘Ewa Tower, which opened in July 2016, said Sarah Evans, Irongate’s managing director of marketing and sales opportunities. But fractional ownership in the club’s flexible ownership program will start at $700,000 for four weeks spread over the summer and winter, Evans said. There will also be a fixed ownership program that allows owners to come annually during the same peak two-week period, including Christmas and New Year’s, Golden Week and Obon, she said.

Joseph Toy, president and CEO of Hospitality Advisors LLC, expects the market to quickly absorb the club units.

“There’s definitely a market for high-end fractionals, and I expect demand will be elevated because this product is in Waikiki and is backed by the service and amenities of the Ritz-Carlton brand,” Toy said.

Mark Bratton, senior vice president of Colliers International, said developers, especially on the high end, are more bullish than ever about Waikiki. The trick, however, is finding available space to develop or redevelop.

“Most of our stuff was built in the late 1960s and 1970s,” Bratton said. “We’re also constrained by the Ala Wai Canal. If we cleaned it up and made it more approachable, it could become new waterfront, and we’d see more luxury properties on that end, too.”

Grosfeld said the beauty of the club is that it allows Irongate to deliver more luxury development to Waikiki, where construction costs, limited availability of land and lengthy entitlements have created barriers to entry.

“As you can see from the company’s investment in Waikiki over the last 16 years, we are believers, and we certainly would like to do more in Waikiki,” he said.

Grosfeld said Diamond Head Club allows Irongate to reach a whole new market while providing greater choice for buyers. Evans said hotel condominiums on the other floors of the Diamond Head Tower began selling in the summer of 2014 and were largely sold out by mid-2016.

Grosfeld said the new concept is predicated on the belief that there also “are a lot of people, who for about the same amount of money, would rather have a two-, three- or four-bedroom penthouse and are completely fine with just using it for a few weeks or few months of the year.”


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Luxury condo sales in Honolulu outpace houses in November

Photo: Jack Tyrrell and Company

Photo: Jack Tyrrell and Company

Sales of luxury condominiums outpaced sales of luxury single-family homes in November 2018. .“For condominiums, the $1.5 to $2 million price range had the strongest performance, up 50 percent, six compared to four last year,” Patti Nakagawa, Global Luxury director for Coldwell Banker Pacific Properties, said in a statement.

These numbers show that demand and interest for luxury condominiums continue to remain high. We continue to stay ahead of and on-trend in this market, and would love to talk real estate with you about what to look forward to in 2019!

Read more from Pacific Business News, below:

Sales of luxury homes on Oahu were relatively flat overall in November, compared to last year, but sales of high-end condominiums outpaced sales of single-family homes for $1.5 million or more, according to a report by Coldwell Banker Pacific Properties.

Overall, there were 39 residential properties sold for $1.5 million or more, compared to 38 sold in November 2017, an increase of 3 percent. The median price of those single-family homes and condos was $1.98 million, an increase of 9 percent from $1.8 million last year.

Of those, 11 sales were for luxury condos, with the highest sale being for $11.07 million on Nov. 29 for a three-bedroom, 3.5-bath unit at Park Lane Ala Moana. That’s compared to nine luxury condos sold during the same month last year, an increase of 22 percent.

There were 28 single-family homes sold for $1.5 million or more in November, compared to 29 sold in November 2017, a decline of 3 percent. The highest prices last month were $9.88 million for a seven-bedroom, five-bath house in Lanikai that sold before it was listed and $7.2 million for a five-bedroom, 5.5-bath home on Kahala Avenue.

“Single-family home sales in the lower price range of $1.5 to $2 million were down by 24 percent, 16 compared to 21 last November, mainly attributable to a lack of desirable inventory in that price range,” Patti Nakagawa, Global Luxury director for Coldwell Banker Pacific Properties, said in a statement. “For condominiums, the $1.5 to $2 million price range had the strongest performance, up 50 percent, six compared to four last year.”

The report noted that escrow activity for luxury properties at the end of November was 10 percent lower than the same time a year ago.

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Oceanfront East Honolulu estate sells for $16M: Slideshow

We are proud to have partnered with Tracy Allen of Coldwell Banker Pacific Properties as the co-listing agent of this stunning property, Hale Hoolai. The oceanfront East Honolulu property sold for $15.845 million. Mahalo to Pacific Business News for covering the sale. Read more below:

The sale of an oceanfront estate in East Honolulu near the base of Hawaii Loa Ridge closed on Wednesday for $15.845 million to an unnamed buyer, the highest price ever for the Aina Haina Beach-Niu Beach area.

The 11,940-square-foot home at 5403 Kalanianaole Highway, named Hale Hoolai, has seven bedrooms — including three master suites, three bedrooms and a caretaker suite with a private kitchen and private entrance — 8.5 bathrooms and a three-car garage. It also has a pool and a tennis court.

The estate, which was listed for $17.95 million, had been featured on the NBC "Open House” program.

The seller was 5403 Kalanianaole Hwy LLC, whose owner is Morris Stoebner, owner of Honda Windward in Kaneohe.

Tracy Allen, independent agent with Coldwell Banker Pacific Properties, represented the seller. Jack Tyrrell & Co. was the co-listor, and Loren Graham of Graham Properties Inc. represented the unnamed buyer.

The most recent large sale along that stretch of Kalanianaole Highway was the sale of a home and two parcels just Koko Head of the estate for $13.5 million in September 2014.

Allen also represented Stoebner in the highest sale to date in the Honolulu Multiple Listing Service, two homes at 145 Kailuana Loop that sold for $24 million in July 2006. That property, named Kai Moena, is currently listed with Brandon Kim of List Sotheby’s International Realty.



Ward Village tower developer can post first ‘sold out’ sign

Photo: Howard Hughes Corporation

Photo: Howard Hughes Corporation

Ae‘o is officially Howard Hughes Corporation’s first sold-out tower! The developer confirmed that as of late September, contracts for all 464 units had been signed. Waiea and Anaha are also very close to being sold-out, with 167 of 174 units of Waiea sold and 314 of 317 units of Anaha as of September 30. These impressive statistics show that the demand for a diversity of units in Ward Village is consistently strong. Ward Village offers a unique mix of urban living on an island due to its close proximity to the ocean and shops and dining. It seems that this type of mixed-use development is what Honolulu’s residents are craving, and the sales at Ward Village prove this.

For more information on Ae`o units for sale, visit my website.

Read more from the Honolulu Star-Advertiser, below:

The developer of Ward Village in Kakaako took the tiniest of steps recently to reach a major milestone: declaring its first “sold out” condominium tower.

Texas-based Howard Hughes Corp. noted the last sales contract being signed for its nearly finished Ae‘o high-rise in a quarterly financial report Tuesday.

Hughes Corp. said it had signed contracts for all 465 units in the tower as of Sept. 30. The project contains a recently opened Whole Foods and is on schedule to finish residential area construction by the end of the year so buyers can complete their purchases and move in.

Up through June 30, there had been 464 Ae‘o sales. The one additional sale during the July-September period made Ae‘o the first tower at Ward Village to sell out.

However, three other towers — Anaha, Waiea and Ke Kilohana — are very close.

At Anaha, 314 of 317 units had been sold as of Sept. 30, Hughes Corp. reported. And at Waiea, 167 of 174 units had been sold as of the same date, the company said.

Waiea was finished about two years ago and Anaha opened a year ago.

At Ke Kilohana, which is under construction and projected to open next year, Hughes Corp. reported having signed sales contracts for 395 of 423 units through Sept. 30. The company also said it made 18 more sales in October to make the tower 98 percent sold.

Hughes Corp. started construction on a fifth tower, ‘A‘ali‘i, last month after offering units for sale in January. In Tuesday’s report, the company said it had sold 77 percent of the ‘A‘ali‘i units, or 579 of 771, through the end of October. That was up from 67 percent, or 500 units, through July.

The company described continued Ward Village condo sales as a “robust” response from buyers wanting to live in the growing neighborhood of residential towers, retail stores and restaurants mauka of Kewalo Harbor.

“In Honolulu, the extraordinary pace of sales in Ward Village continued in the third quarter,” Hughes Corp. CEO David Weinreb said in a statement.

The developer plans to follow ‘A‘ali‘i with a sixth tower called Ko‘ula, for which it received state approval in August. Sales have yet to start.

Since the company began Waiea, it said it has sold 1,905 residential units in five towers with units available for sale, or 89 percent of all units.

Most Ward Village condos are million-dollar residences, though Hughes Corp. is required by a state agency regulating development in Kakaako to make 20 percent of residential units affordable and available to residents earning moderate incomes.

At the high end, the average original price at Waiea was $3.6 million. At the low end, the average price at Ke Kilohana was $510,776.

Hughes Corp. has a state-approved master plan to develop up to around 4,500 residential units planned in 16 towers, along with 1 million square feet of retail businesses.



Howard Hughes Corp. says 89% of Honolulu condos are sold

1108 Auahi St Honolulu HI-print-002-10-Auahi St Honolulu HI  96814 -4200x2800-300dpi.jpg

Read the full article, below:

The Howard Hughes Corp. has sold nearly 90 percent of the 1,381 condominium units the developer is building at its Ward Village community in Honolulu and last month repaid a $195.3 million construction loan on the Waiea and Anaha towers there, the company said Monday in its third quarter earnings report.

The Howard Hughes Corp. (NYSE: HHC) reported third quarter net income of $10.5 million, or 24 cents per diluted share, compared to net income of $8 million, or 19 cents per diluted share for the same quarter last year.

CEO David Weinreb, who inked a new 10-year agreement with the Dallas-based company, noted that the Hawaii properties contributed to gains in the quarter.

“In our strategic developments segment, we had our strongest quarter of sales at Ward Village without the launch of a new building as our vision for the community increasingly becomes a reality,” Weinreb said in a statement. “We are now approximately 89 percent sold on our four buildings currently under construction.”

Of the total 1,381 units in Waiea, Anaha, Aeo and Ke Kilohana, 1,227, or 88.8 percent, were closed or under contract as of Sept. 30, the company said.

Howard Hughes is still selling units at Waiea, which cost $417.3 million and was completed in November 2016. The company said it had closed on 158 of the 174 units there as of last week.

The developer had closed on 207 of a total 317 units at Anaha, which cost $401.3 million and opened last month.

Two other buildings, the Whole Foods Market-anchored Aeo, which is expected to cost $428.5 million and will have 466 units, and Ke Kilohana, which is expected to cost $218.9 million and will have 424 units, are under construction and are expected to be completed in the fourth quarter of 2018 and in 2019, respectively.

The company noted that it has started sales for the first tower of the Gateway Towers project but offered no other details.

Howard Hughes also noted that it began demolition of the Ward Warehouse shopping center during the quarter, which removed 115,191 square feet of “old retail space” from Ward Village, the company said.



Anaha at Ward Village Welcomes First Residents

Anaha has officially welcomed its first residents! It was an honor to join The Howard Hughes Corporation team, Anaha's new homeowners, and our friend and clients for the blessing ceremony, which was beautifully led by Kumu Hina.

97% of the 317 units in Anaha have already been sold, but please contact us for our listing, which are some of the best and most desirable in the building.

Read the full press release, below:

HONOLULU--(BUSINESS WIRE)--The Howard Hughes Corporation® (NYSE: HHC) announced today that it has begun welcoming residents to Anaha®, the second residential tower to be delivered in Ward Village®, the 60-acre coastal master planned community located in the heart of Honolulu. Named “Best-Planned Community in the United States” by Architectural Digest, Ward Village includes a thoughtfully curated mix of retail and dining experiences set among dynamic public open spaces and walkable streets. The milestone was celebrated with a traditional Hawaiian blessing ceremony.

Upon completion, the community will supply over 4,500 new residences in a market where the availability of new housing continues to fall short of demand. To date, the community has contracted to sell more than 1,200 residences, including 97% of Anaha’s 317 homes.

“The completion of Anaha is another significant milestone for Ward Village as our vision for the community to become a vibrant live-work-play destination continues to come to life,” said David R. Weinreb, Chief Executive Officer of The Howard Hughes Corporation. “With its striking architecture, the building is a transformational addition to the Kaka’ako skyline and, along with Waiea®, a symbol of the level of design and quality we aspire to bring to each residence at Ward Village.”

Designed by Chicago-based Solomon Cordwell Buenz in partnership with Honolulu-based Benjamin Woo Architects, the building is home to a diverse range of stylish residences and well-appointed amenities. Residents of Anaha will be able to enjoy an ocean-view glass bottom pool, state-of-the-art fitness center, a tennis court, a beach volleyball court, a library, an auditorium style movie theater, lounge areas, barbecue cabanas, private dining rooms, a wellness center, a putting green, a dog park, and a keiki play area.

“Anaha is not only a great addition to Ward Village, but furthers the establishment of an engaging, pedestrian-friendly neighborhood that will serve the broader Oahu community,” said Todd Apo, Vice President of Community Development for The Howard Hughes Corporation. “With the dynamic mix of dining, shopping, entertainment, and cultural offerings at Ward Village, such as the first Oahu location of highly-regarded Merriman’s restaurant that will open at the base of Anaha, the neighborhood will continue to attract and serve residents and visitors alike.”

The Information Center and Residential Sales Gallery is located at the iconic IBM Building at 1240 Ala Moana Blvd. For more information, visit www.wardvillage.com.

About Ward Village®

Developed by The Howard Hughes Corporation®, Ward Village is a new 60-acre coastal master-planned community in the heart of Honolulu between downtown and Waikiki in the Kaka'ako district that upon completion will include more than 4,500 homes and 1 million square feet of retail. Ward Village is at the forefront of sustainable community development, integrating architecture, local culture, and public space. New tree-lined sidewalks and bike lanes provide access to an over 100-acre public beach park and the Kewalo Harbor. Ward Village includes mixed-use residential towers—Waiea®, Anaha®, Ae`o®, Ke Kilohana, and Gateway Towers —that are transforming the popular shopping and dining district into a vibrant neighborhood that offers residences island and ocean views and a thoughtfully curated mix of retail experiences set among walkable open spaces. The most recently approved project, 'A'ali'i will continue to expand the selection of new homes at Ward Village and sit at the top of the Central Plaza which will serve as a key public gathering and activation space for the community. Art and culture play an integral role at Ward Village, home of the inaugural Honolulu Biennial, which launched in 2017. Public art is highlighted throughout the neighborhood, including large-scale wall murals, sculptures and locally-inspired exhibits. Ward Village is Hawai‘i’s only LEED-ND Platinum-Certified project and is the largest neighborhood development in the country to receive such a prestigious certification. For more information, visit www.wardvillage.com.

About The Howard Hughes Corporation®

The Howard Hughes Corporation owns, manages and develops commercial, residential and mixed-use real estate throughout the U.S. Our properties include master planned communities, operating properties, development opportunities and other unique assets spanning 14 states from New York to Hawai‘i. The Howard Hughes Corporation is traded on the New York Stock Exchange as HHC with major offices in New York, Columbia, MD, Dallas, Houston, Las Vegas and Honolulu. For additional information about HHC, visit www.howardhughes.com.

Safe Harbor Statement

Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “expect,” “enables,” “realize”, “plan,” “intend,” “assume,” “transform” and other words of similar expression, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s expectations, estimates, assumptions, and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially are set forth as risk factors in The Howard Hughes Corporation’s filings with the Securities and Exchange Commission, including its Quarterly and Annual Reports. The Howard Hughes Corporation cautions you not to place undue reliance on the forward-looking statements contained in this release. The Howard Hughes Corporation does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.



Industry News: Condo prices climb higher than forecasters predicted

Photo Property of Jack Tyrrell and Company: Anaha, October 2017

Photo Property of Jack Tyrrell and Company: Anaha, October 2017

As we have been preparing for Anaha's opening, news on the condominium market on Oahu continues to look strong. With the University of Hawaii Economic Research Organization (UHERO) predicting a 6.7 increase in the median price of a condo on Oahu in 2018, now is the time to buy.  Read more trends reported by Pacific Business News, below:

The median price of a condominium on Oahu tied for an all-time record last month, and is on pace to finish the year higher than forecasted by University of Hawaii economists, while single-family homes are on pace to see flat or slightly lower price appreciation than the year before.

Already, the year-to-date median price for a condo — $407,000 for the first nine months of the year according to the Honolulu Board of Realtors — is higher than the price for all of 2017 predicted by the University of Hawaii Economic Research Organization (UHERO) in its recent construction forecast, which was $405,600.

The year-to-date median price is 5.4 percent higher than it was at the same point a year ago, which was $386,000. The median price of a condo for all of 2016 was $390,000, which was an increase of 8.3 percent from all of 2015.

For single-family homes on Oahu, the median price from January through the end of September was $757,000, an increase of 3.4 percent from $732,000 at the same point last year, according the Honolulu Board of Realtors data.

For all of 2016, the median price of a single-family home was $735,000, and that was a 5 percent increase from 2015.

The rate of appreciation in Hawaii is actually slower than the national and regional figures.

According to the Federal Housing Finance Agency’s Housing Price Index report for July, the most recent data available, home prices in the U.S. — the report does not distinguish between single-family and condo — rose 6.3 percent from July 2016 to July of this year, although for the Pacific region, which includes Hawaii, Alaska, Washington, Oregon and California, the median price increase over the one-year period was 8.2 percent.

Despite the slowed price appreciation, homes are still selling at a brisk pace. Sales of single-family homes during the first nine months of the year totaled 2,860, a 5 percent increase from 2,723 sales during the same period in 2016, and more than the number of homes sold in all of 2008 and 2009, during the Great Recession, as well as in all of 2011. The number of days those homes are on the market has gone down by one day over the past year to an average of 16 days.

Condos are selling even faster than they were a year ago. The average number of days on market for the first three quarters of 2017 was also 16 days, but that was three fewer days than at the same point last year, when it was 19 days.

Sales of condos totaled 4,373 units through the end of September, which was 5.8 percent more than the 4,133 that sold during the first nine months of 2016. The number of condos sold so far this year is also more than during each year from 2008 through 2012.

“Really, it’s affordability,” said Sue Ann Lee, a Realtor with Forward Realty and president of the Honolulu Board of Realtors. “When you think about there being so little inventory on the single-family side, what do you have left?”

But while condos may be affordable now for some buyers priced out of single-family homes, prices for those condos are forecast to rise at perhaps a faster clip over the next few years.

According to the UHERO forecast, the median condo price is expected to increase by 6.7 percent to $432,700 in 2018, 5.3 percent to $455,500 in 2019, and 3.5 percent to $471,500 in 2020.

For single-family homes, the forecast for the median price is $757,200 at the end of this year followed by an increase of 4.5 percent to $791,200 in 2018 and an increase of 3.8 percent to $829,900 in 2019.



Waikiki, Kakaako condominium sales up by more than 30 percent in August

Photo: Property of Jack Tyrrell and Company, Inc.

Photo: Property of Jack Tyrrell and Company, Inc.

Waikiki and Kakaako condo markets continue to perform well, with sales jumping 40 percent and 33 percent, respectively. With an average of 26 to 30 days on market, it's more important than ever to select the right agent to find the best home or investment property for you, and to close the deal quickly!  

Read the full report from Pacific Business News, below:

Condominium sales in Waikiki jumped 40 percent in August, while Kakaako condo sales increased 33 percent, according to a local market update by the Honolulu Board of Realtors.

There were 109 condominiums sold in Waikiki last month for a median price of $412,000, 2 percent less than last August. Units were on the market for an average of 30 days, selling 17 days faster than in August 2016. New listings and overall inventory increased 32 percent and 17 percent, respectively.

“Waikiki was a popular option for those in the market for condominiums,” said Sue Ann Lee, president of the Honolulu Board of Realtors. “The area is a great central location in urban Honolulu and offered local homebuyers and investors a wide selection of inventory from studios to luxury vacation condos.”

Kakaako condo sales increased 33 percent in August to 60, brining year-to-date sales up 19 percent to 377. The August median price in the area was $443,500, up 10 percent from last August, while the year-to-date median price decreased 4 percent to $495,000. The percentage of original price received increased 8 percent from last August, with sellers receiving 102.1 percent of the listing price on average. Also, days on market dropped 40 percent to 26 in August.

For single-family home sales, Makakilo experienced a 35 percent bump in August to 23, while the median sales price increased by 82 percent from the same period last year to $750,000. New listings increased by 29 percent and overall inventory rose by 32 percent, while median days on market decreased 17 percent to 24 in August.

“Makakilo was a popular neighborhood for single-family houses as demonstrated by the decrease in days on market and increase in closed sales,” Lee said. “The spike in median sales prices for single-family houses in Makakilo clearly shows the high demand for affordable housing and homebuyer’s willingness to explore options outside the metropolitan Honolulu area.”

In Hawaii Kai, single-family home sales increased 40 percent to 14, while the median price was flat at $1.24 million. Year-to-date sales increased 6 percent to 115 with the median price increasing 7 percent to $1.14 million



Industry News: ​Kakaako condominium prices soar 88 percent in July

Photo: Jack Tyrrell and Company, Inc. One-bedroom luxury rental in Waiea, featured on wardvillagerentalshwaii.com

Photo: Jack Tyrrell and Company, Inc. One-bedroom luxury rental in Waiea, featured on wardvillagerentalshwaii.com

This article originally appeared in Pacific Business News:

Kakaako median condominium prices soared 88 percent to $695,000 last month, with closed sales increasing 15 percent to 47, according to a local market update released by the Honolulu Board of Realtors.

Homes also moved quicker, selling after an average of 12 days on the market, a 37 percent decrease from last July.

Kakaako median condominium prices soared 88 percent to $695,000 last month, with closed sales increasing 15 percent to 47.

Waikiki had a 21 percent drop in condo sales last month, decreasing to 78 from 99 last year. The median price paid for those condos was $367,500, a 6 percent drop from $390,000 last July.

For single-family homes, Hawaii Kai and Kaneohe saw double-digit increases in the median price last month, increasing 18 percent to $1.2 million for Hawaii Kai and 13 percent to $964,350 for Kaneohe.

Closed sales, meanwhile, decreased 6 percent and 12 percent, respectively.

Year-to-date median prices for the neighborhoods are up 8 percent to $1.1 million and $857,250, respectively.

Kahala experienced a 12 percent drop in median price for single-family homes in July, decreasing to $1.5 million from $1.7 million in July 2016. Year-to-date prices are down 4 percent to $1.7 million.

In the Ewa Plain, closed sales increased 28 percent to 73 in July, with the median price inching up 2 percent from last July to $660,000. New listings in the area increased 23 percent to 95.

This area remains popular due to its lower price points and varied options, according to Sue Ann Lee, president of the Honolulu Board of Realtors.

“For homebuyers willing to look outside Urban Honolulu, Leeward and Central Oahu neighborhoods like Wahiawa and Makakilo offer a wide selection of options that fall at or even below the island-wide median sales price of $750,000 for single-family houses and $425,000 for condos and townhouses,” Lee said.



Industry News: Howard Hughes Corp. turns a profit as it recognizes condo revenue

Photo: BRUCE ASATO / BASATO@STARADVERTISER.COM   The   Ae‘o   tower at Queen and Kamakee streets will have a Whole Foods Market on its ground floor. The complex is 32 percent built and slated for completion late next year.


The Ae‘o tower at Queen and Kamakee streets will have a Whole Foods Market on its ground floor. The complex is 32 percent built and slated for completion late next year.

The Howard Hughes Corporation has reported its Second Quarter 2017 results, which show an overall profit and approximately $150 million in condo sales revenue. The company sold an additional 35 units at Ward Village in Honolulu, increasing the percentage of total units closed or under contract at our four projects under construction to 85.1% as of June 30, 2017.

This past May, American investor Bill Ackman pitched The Howard Hughes Corp. at the annual Sohn Investment Conference, calling it one of the most attractive times in the history of the company to invest.

Read the Honolulu Star-Advertiser's report, below:

Close to $150 million in condominium sales revenue from four towers in Kakaako helped the developer of Ward Village turn a profit in the second quarter.

Howard Hughes Corp. also reported on Monday that it sold 35 more Ward Village condos in the April-June period.

David Weinreb, the company’s CEO, said in a statement that the sales results show “strong momentum” at Ward Village, where Hughes Corp. expects to begin building a new luxury tower called Gateway Cylinder later this year and start sales for a more moderately priced tower called A‘ali‘i this month.

Texas-based Hughes Corp. completed its first Ward Village tower, Waiea, in November and has three under construction — Anaha, Ae‘o, and Ke Kilohana.

Most of the additional sales in the second quarter were at Ae‘o, where a Whole Foods Market will be the anchor retail tenant. Since April 18, there were 29 more units sold in the building, bringing total sales to 321 out of 466 units. Ae‘o is 32 percent built and projected for completion in late 2018.

At Anaha, a tower to be anchored by a Peter Merriman restaurant, there was one more sale since April 18. Of 317 units, 302 have been sold. This tower is 91 percent complete and slated to open by the end of the year.

There were two more sales at Waiea, bringing the total number of units sold to 165 out of 174.

At Ke Kilohana, a tower with mostly below-market prices that broke ground in October, there were no new sales in the second quarter. All 375 below-market units were sold last year at auction. There also are 49 market-priced units being made available in increments. Of these units, 12 were previously sold and eight are available now from the $860,000s. Ke Kilohana is 21 percent complete and slated for completion in 2019.

Ward Village condo sale revenue in the second quarter totaled $148 million, but that isn’t wholly or only from the 35 recent sales. Hughes Corp. recognizes a portion of revenue from all pending condo sales in relation to how much of a tower has been built. Such sales won’t actually be completed with customers paying the developer, beyond initial deposits, until a tower is finished.

Hughes Corp. did not break down revenue by project, but noted that the second quarter was the first time the company recognized any revenue from Ae‘o. Starting next year, Hughes Corp. will discontinue this accounting practice known as “percentage of completion” and shift to recognizing condo sale revenue only when a tower is completed and sales close.

The company’s total revenue in the quarter was $309 million, up from $274 million a year earlier. Profit for Hughes Corp. was $3.1 million in the second quarter, down from $7 million a year earlier.