KAILUA-KONA, HI-Several months ahead of schedule, Vitus Group has completed the final phase of Lokahi Apartments, a new 306-unit, affordable rental community located just outside Kailua-Kona, HI. The $60-million, 18-building project represents a significant development milestone, according to Vitus Group, in the use of public and private funds to create and preserve affordable housing in Hawaii, which it deems one of the most challenging housing markets in the US.
Lokahi Apartments comprises 90 studio units, 108 one-bedroom units, and 108 two-bedroom units. Common areas include a preserved archeological site, three game pavilions, a community pavilion with a barbeque area, a basketball court, a volleyball court and a recreational area for children. Amenities to the units include solar hot water heating, Energy Star appliances, low flow plumbing fixtures, ceiling fans in each room, and beautiful hardwood-like flooring. Most units have an ocean view.
Stephen Whyte, managing director of Vitus Group, parent company to Vitus Advisors and Vitus Development (formerly Pacific Housing Advisors), points out that “Today’s Grand Opening of Lokahi Apartments is a brilliant example of what can be accomplished when government agencies and a private developer share the same vision—a brand new, high-quality community for hard working families.”
Makani Maeva, director of Vitus Group, adds that “We have worked hand-in-hand with state and county government officials to bring this community to life and we are proud that working families are now able to call Lokahi home.”
The community was financed using several complex financing structures. The project was funded using tax-exempt private activity bonds capitalized with 4% Federal Low Income Housing Tax Credits, and $33.5 million variable rate bonds were issued and placed by Hawaii Housing Finance & Development Corp., the housing finance agency for the State of Hawaii.
Prospective residents must meet maximum household income limits that are at or below 60% of the area median income, as determined annually by the US Department of Housing and Urban Development. Seventeen units will be reserved for residents making at or below 30% AMI. Monthly rental rates will range from $331 to $863.
Citi Community Capital underwrote the bonds and provided the construction period credit enhancement with Freddie Mac providing the long term credit enhancement on the bonds. Federal and State tax credit equity was provided by Boston Capital and JP Morgan, respectively.
In addition, HHFDC, through the Rental Housing Trust Fund, provided $11.75 million of important gap financing through the construction period.
Construction of Lokahi Apartments began in December 2008, and proceeded at a rate of one new building per month. Completion of the project was originally scheduled for the end of 2010. The complex was built on approximately 10 acres of land located on Kakahiaka Street in Lower Palisades, two miles south of the Kona International Airport.
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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.
