Hokua Luxury Condo Tower – Where are the owners from?

The Hokua condominium, located at 1288 Ala Moana Boulevard, is arguably Honolulu’s most prestigious high-rise address.

Hokua - Image Sourse: Bing Maps

Hokua – Image Source: Bing Maps

The 40-story tower, built in 2006 as a joint development venture between the MacNaughton Group, Kobayashi Group, and A&B Properties Inc,, sits between two highly desirable shopping destinations (Ala Moana Shopping Center to the east and Ward Center to the west), and benefits from excellent ocean views over Ala Moana Beach Park.

Where are the 248 Hokua unit owners from?

When appraisers are valuing a proposed high-rise condominium project, it is often appropriate to develop a market study that analyzes where potential purchasers are likely to come from.  According to tax records as of September 2013, Hokua units are owned by individuals from the following locales:

HOKUA UNIT OWNERS BY STATE / COUNTRY
State / Country # of Units Owned % of Total
Hawaii 177 71.4%
Japan 20 8.1%
California 18 7.3%
Other U.S. 5 2.0%
China 4 1.6%
Korea 4 1.6%
Canada 3 1.2%
Nevada 3 1.2%
New York 3 1.2%
Taiwan 2 0.8%
Florida 2 0.8%
Illinois 2 0.8%
Massachusetts 2 0.8%
Washington 2 0.8%
Switzerland 1 0.4%
Total 248 100.0%

In total, 86.3 percent of current Hokua owners are US based (71.4 percent from Hawaii) and 13.7 percent are foreign (Japan leading the pack with 8.1 percent).  These figures skew more toward Hawaii than I was expecting, although 35 or so units (about 14 percent) are owned by corporations, partnerships, LLC’s, or other entities that have Hawaii addresses, but are not necessarily controlled by owners who reside primarily in the Aloha State.  But by and large, it appears that Hokua’s reputation as the premier luxury tower for wealthy Hawaii residents is deserved.

Hokua owners by state and country

Source: Honolulu Tax Office records and Chris Ponsar, MAI

Future articles will analyze other luxury properties to see how other prestigious developments in Honolulu compare.

Questions, comments?  Please leave them in the comment box, I would be happy to clarify and/or expand.

Aloha, Chris

Hawaii Four Seasons Hotels – A resort real estate appraiser’s friend when data is tough.

Imagine you’re an appraiser in Hawaii, and you’re given the enviable task of appraising an oceanfront homesite in the Manele Resort on Larry Ellison’s island of Lanai.

There are only eleven oceanfront lots currently developed in the resort (as shown roughly in the aerial below) and only one lot has sold in the last decade (Lot 130, for $3,612,500 in May 2011):

Lanai Oceanfront with Parcel Shapes

Manele Resort – Eleven Oceanfront Homesites
Photo Source: Bing Maps

The sale of Lot 130 is a godsend, but other than that, what is an appraiser to do for comps?

We can’t very well do a one comparable appraisal: We’ve got to go off island.

Two resort areas of the State of Hawaii that are similar to Manele Bay in terms of climate and resort appeal are Wailea (Maui) and Hualalai (Big Island).  All three neighborhoods have oceanfront homesites that could potentially provide sale comparables, and all three master planned communities are home to a prestigious Four Seasons resort!

Four Seasons Manele Bay

Four Seasons Manele Bay

Four Seasons Hualalai

Four Seasons Hualalai

Four Seasons Wailea

Four Seasons Wailea

What gives? Being (arguably I’m sure) the most prestigious hotel operator (“flag”) in the State of Hawaii, Four Seasons resort properties must meet certain strict criteria in order to qualify as a potential member of the brand.  Each of the three resorts on Lanai (Manele), Maui (Wailea), and the Big Island (Hualalai) are world class hotels that were constructed between 1989 and 1996, and have been well maintained in the interim.   As such, the physical plant of each resort should have reasonably similar cost/value attributes. (The Hualalai resort is a newer “bungalow-style” design that likely has more market appeal)

Under the assumption that each of the three properties benefit from first class or better improvements, differences in room rates likely capture a good portion of the market’s preference for a specific location/resort.  For an appraiser starved for data in a highly-unique sub-market like Manele Bay/Lanai, hotel room rates can provide much needed market support for potential location adjustments.

Consider the following:

FOUR SEASONS – HAWAII OCEANFRONT RESORTS 
Best Available Room Rate – August 19, 2013
Island Resort Hotel Name Year Built Room Rate
Big Island Hualalai Four Seasons Resort
Hualalai at Historic Kaupulehu
1996 $920
Maui Wailea Four Seasons Resort
Maui at Wailea
1989 $595
Lanai Manele Four Seasons Resort
Lana’i at Manele Bay
1989 $459

That’s right, the best available room rate at the Four Seasons Hualalai is DOUBLE the same at Manele Bay!

The following chart shows the relationship of each hotel to its Manele cousin, and the indicated adjustment to equate each room rate to Manele:

Downward appraisal adjustments of 23 percent (Wailea) are serious business, never mind 50 percent allowances (Hualalai).  But for the appraiser who is digging deep for market support for a location adjustment, comparative hotel room rates are an interesting value indicator to consider.  In a future article I’ll examine the three neighbor island resorts in greater detail and see if these price relationships hold.

Questions, comments?  Please leave them in the comment box, I would be honored to clarify and/or expand.

Aloha, Chris

Proposed Honolulu Condo Towers – The List of 12

These days in Hawaii, one of the most common topics real estate appraisers are confronted with is: “Have you heard about that new tower they announced in Kakaako?”

Very often, I’m asked for specifics about a new high rise condominium development in Honolulu.  I decided to compile a concise list.

There is an enormous amount of development activity happening in Hawaii right now, especially in urban Honolulu.  Major developers, lenders, and landowners are involved, including: Alexander and Baldwin (A&B), Howard Hughes Corporation, The MacNaughton Group, Kobayashi Group, OliverMcMillan, Tradewind Capital, Kamehameha Schools, Stanford Carr, American Savings Bank, Bank of Hawaii, Central Pacific Bank, Wells Fargo, and First Hawaiian Bank.

As I started to put this list together, I quickly realized that the variety of residential projects being planned was staggering: High-rise condos, student housing, timeshare, hotel, high-rise apartments, low-rise condominiums, senior housing, and even affordable housing for artists!

Here are the parameters for inclusion in this article:

  • High-Rise Construction
  • Fee Simple Condominiums
  • Whole Ownership (No Timeshare)
  • An active development plan on track for approvals, financing, and construction.

12 Oahu towers made the cut, a total of 4,166 proposed units–web links and a brief summary of each project is included below:

2013 PROPOSED / COMPLETED HIGH RISE CONDOMINIUM TOWERS
Oahu, Honolulu, Hawaii
# Tower Name (click name) Stories Units Status / Timing
1 Holomua 23 176 Completed: Early 2013 
2 Waihonua at Kewalo 43 341 Under Construction
Completion: 2014 of 2015
3 ONE Ala Moana 23 210 Under Construction
Completion: Late 2014
4 Symphony Honolulu 45 388 Groundbreaking: Late 2013
Completion: 2015
5 801 South Street 46 635 Groundbreaking: “Mid-2013”
6 Ritz-Carlton Residences,
Waikiki Beach
36 309 Groundbreaking: Late 2013
Completion: 2016
7 The Collection
(3 buildings, 1 high rise)
43 460 Groundbreaking: Mid to Late 2014
Completion: Late 2016 to 2017
8 404 Ward Ave 38 424 Groundbreaking: Early 2014
Completion: 2016
9 Keauhou Lane in Kakaako 40 600 Groundbreaking: Mid to Late 2014
10 Aloha Kai 39 128 Completion: 2016
11 “Fishnet Tower” 38 177 Proposed
12 “Wave Tower” 38 318 Proposed
Compiled by: Chris Ponsar, MAI   4,166 Total Units

The map below shows the location of each project in urban Honolulu:

Oahu Condo Project Map - Chris Ponsar, MAI

Click HERE to view details in Bing Maps

This link: http://binged.it/13RCPpX takes you to an interactive Bing Map that shows photos and details of each project.  As shown, most of the activity is in Kakaako.

Want more details?

Here you go:

Proposed Honolulu Condo Towers - Detail

CLICK CHART TO ENLARGE

Comments and/or Questions?  Please leave them in the comments section below–I’d be happy to clarify or expand.

Aloha, Chris