LOS ANGELES--(BUSINESS WIRE)--Salem Partners, a leading Los Angeles-based real estate development company, has received final approval from the Honolulu City Council to build a second major project under Honolulu’s Ala Moana Transit Oriented Development Plan. As part of the latest project, Salem proposed an innovative affordable housing plan for 78 units to be built on the 1.42-acre site at 1500 Kapiolani Avenue.
“We have enthusiastically embraced the city’s new TOD plan and look forward to the completion of the transit system in 2022,” said James Ratkovich of Salem Partners. “And we are very proud of the affordable housing plan we have created. It is an innovative solution for deeply needed affordable units in Honolulu.”
Salem secured a special transit permit for 1500 Kapiolani that gives it the right to build to 400 feet high instead of the 250 feet currently allowed. Thus, the project will include two mixed-use towers, one at 400 feet and the other at 350 feet, connected by an iconic bridge that spans from the 35th floor of the taller tower to the rooftop of the second. The genesis for the unique bridge is the Hawaiian word “Kapiolani” which means “heavenly arch,” said William Witte of Salem Partners. This arch will include an infinity edge pool and entertainment areas as well as providing stunning views of the island.
Salem plans a total of 450 hotel and residential units in the glass towers at 1500 Kapiolani designed by Colorado-based architectural firm [au] workshop.
The site, bounded by Kapiolani Boulevard on one side and Makaloa Street on the other, will be activated with restaurants and retail shops at ground level as well as extensive gardens and plazas.
Nonprofit affordable housing developer EAH Housing will collaborate with Salem Partners to develop and manage the affordable element that is designated for senior housing. Five floors of apartments will be built atop the parking structure that is adjacent to the flagship Walgreens. Recently Salem sold the Walgreens building but retained the parking structure where it will now build additional parking and the affordable apartments.
Salem’s Mana’olana Place project at Atkinson and Kapiolani across from the Hawaii Convention Center will start construction in the second quarter of 2018. A new Mandarin Oriental Hotel will anchor this iconic mixed-use tower also designed by [au] workshop. Mandarin Oriental Honolulu will include 125 guestrooms and suites and 107 branded residences, which will provide some of the most luxurious private homes with the finest amenities and services on the island. In October 2016, Mana’olana Place was the first development approved under the city’s Ala Moana TOD.
“Salem’s projects will result in more than $1.6 billion in new investments in Honolulu over the next five years,” reports Witte. “We have tremendous confidence in the future of Honolulu as a growing business and visitor destination.”
Both of Salem Partners’ Kapiolani Boulevard sites were previously occupied by distressed properties. Mana’olana Place and 1500 Kapiolani are already catalyzing more new investment in the area.
About Salem Partners
Founded in 1997, Salem Partners comprises three platforms: investment banking, real estate development, and wealth management. Salem’s investment bankers have completed billions of dollars of transactions in various industries. The wealth management division provides customized investment and family office services to clients who prize top-flight expertise combined with in-depth relationships. Real estate development is headed by industry veterans experienced in all segments of the built environment.