HONOLULU-It’s pretty clear that the dozens of people who camped out for two days recognized the value of the 48-story redesigned Pacifica Honolulu project. The reason? San Diego-based development firm OliverMcMillan recently revealed that firm contracts are in place for 244 of the 365 available market-rate units in the Pacifica Honolulu condominium project, and the $50 million construction loan closed with First Hawaiian Bank.
With the presales and financing secured, construction on the $285 million project officially started at the end of April with Ledcor Construction. OliverMcMillan acquired Pacifica Honolulu, formerly known as Moana Vista, in October 2009 from KC Rainbow II.
The troubled property, located at 1009 Kapiolani Blvd., had stopped construction in the fall of 2008 after the developer lost his construction loan and stopped funding the project with his own equity. The 27th floor of the concrete tower had been poured, and the exterior glass and interior finishes were partially underway.
OliverMcMillan redesigned the two-bedroom 489-unit limited-amenity project into a contemporary urban project with design and amenities including one, two, and three-bedroom residences. To date, 221 of the sales contracts have become non-refundable with deposits of 10% of the sales price in escrow.
In September 2010, 124 additional residences will be offered for public sale to qualified local residents meeting moderate income requirements set forth by the Hawaii Community Development Authority. OliverMcMillan anticipates there will be hundreds of qualified residents hoping for the opportunity to purchase after the applications are released later this summer.
The 430,200-square-foot Pacifica Honolulu project is expected to be completed in September 2011, creating more than 400 local construction jobs.
"Where others saw only impossible hurdles, OliverMcMillan saw opportunities," said Don Horner, Chairman and CEO of First Hawaiian Bank. "The firm should be congratulated for transforming a half-built, stalled property into a successful and attractive affordable housing opportunity."
Through banking and capital relationships the company has developed over its 32-year history, helped enable it to transform Pacifica Honolulu from a troubled property to an urban condo project in less than one year. OliverMcMillan’s development team includes: First Hawaiian Bank, Architects Hawaii, and Ledcor Construction Hawaii LLC, Jules Wilson and PhilPotts interior designers and the exclusive project broker, Heyer & Associates.
“The fact that we had buyers camped out to purchase Pacifica Honolulu units, a once troubled property, is a huge success in this economy,” says Dene Oliver, CEO of OliverMcMillan. “The cohesive project team combined with the company goal to pass along the value to prospective buyers, is what created a win for everyone.” The Pacifica Honolulu project is a value play, according to Oliver.
Ricky Cassiday, an independent real estate analyst in Honolulu, points out that three key components contribute to the success of the sale of the units: “good value, a highly desirable location and the fact that this is the low point of development in the cycle.” He continues that “Pacifica Honolulu is one of the few instances of high rises coming on the market.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
