The kamaaina company that built Kapolei from scratch is developing more of Oahu’s West Side in a very big way. “James Campbell Co. is currently building approximately $30 million of critical infrastructure at its Kapolei Harborside development, an approximately 360-acre industrial park located near the Kalaeloa Barbers Point Harbor,” says Peter Phillips, Project & Construction manager, Kapolei Properties Division, James Campbell Co. LLC.
PHOTO COURTESY: PLUS POWER
The project is being built in four phases. New infrastructure includes wastewater systems, drainage, roadway and electrical improvements, and will service Harborside’s first phase of approximately 72 acres.
That’s plenty of work for Hawaii contractors in 2023. And there’s plenty of power nearby to back it up. Kapolei Energy Storage, a 185MW Plus Power battery storage project currently underway by Moss & Associates, is “ scheduled to wrap in March and is scheduled to wrap in March and is “the first stand-alone, largest battery-storage project in the state,” says Josh Meyers, Moss vice president of energy in Hawaii.
RENDERING COURTESY: AVALON DEVELOPMENT CO. LLC
But for many would-be Harborside builders, there’s a catch. “Oahu’s industrial vacancy rate [is] anticipated to drop below 1% in 2023,” says Robert Kelley, vice president at Avalon Development Co. LLC. “There is currently almost no fee-simple industrial warehouse space under construction, leaving local businesses stunted in growth or forced to choose from existing inventory that is often functionally obsolete.”
Avalon is moving quickly. “Currently, Avalon is developing Coral Creek Center at Gentry Business Park–Ewa and The Crossing at Kapolei Business Park West,” Kelley says. Combined, the two sites will create over 430,000 square feet of industrial space for West Oahu.
“Coral Creek Center offers IMX-zoned mixed-use industrial condominiums ranging from approximately 1,100 square feet, up to approximately 111,000 square feet of contiguous space,” Kelley says. “The Crossing offers I-2 zoned industrial condominiums at the prime corner of Kalaeloa Boulevard and Lauwiliwili Street, ranging from approximately 1,000 square feet to approximately 59,000 square feet of contiguous space.” Both are slated to break ground in 2023 and for delivery in 2024-2025.
Harborside’s developer is also eyeing this market: “The James Campbell Co. is designing an approximately 100,000-square-foot industrial spec building for lease,” Phillips says.
West Side Mastermind
Robert Kelley, Avalon Development Co. LLC vice president and project manager, is staking out many new West Oahu jobsites these days—a pair of industrial condominiums and Dreamhouse Center, home of the future charter Dreamhouse High School, to name just three. All are slated to break ground this year.
Avalon is in progress or has completed 19 West Side developments to date. “Since joining Avalon in 2019, I’ve held positions of increasing responsibility within the executive organization of the company,” Kelley says. “My duties have included work on acquisitions, permitting and planning, sales/leasing, property management, investor relations and capital planning”—in short, blazing a trail for Avalon expansion.
Kelley grew up in Hawaii. “I spent most summers working with my family’s hotel business, Outrigger Hotels & Resorts,” Kelley says. Outrigger’s pioneering spirit made its mark: “It was here that I first became interested in real estate development and decided to pursue a career outside of the family business.”
After attending Punahou School, Kelley earned his bachelor’s at Duke University and then completed a dual degree in law and business management at the University of San Diego.
“Working with Avalon has been an extremely exciting experience due to the entrepreneurial and dynamic spirit of its founder and CEO, Christine Camp,” Kelley says, citing Avalon’s wide range of successful Hawaii projects—from retail shopping centers to warehouses to master-planned communities.
“Who knows what will be next for Avalon’s expansion into the West Side?” Kelley muses. “But I’m sure it will be exciting.”
RENDERING COURTESY: AVALON DEVELOPMENT CO. LLC
As James Campbell Co. expands along the shore, Hunt Cos. Hawaii is pushing west through Kalaeloa. “Infrastructure has been moving forward successfully at the western end of our holdings,” says Paul Kay, executive vice president and COO, Development, Hunt Cos., Hawaii Region. More infrastructure work is underway to support Hunt’s new Kalaeloa commercial development program planned for 2024. Meanwhile, Kay says, “we currently have a robust program of adaptive reuse and interim development programs that have brought over 4 million square feet online to provide new commercial and industrial leasing opportunities for local businesses—with the most recent offering at the corner of Lexington and Shangrila streets.”
By the end of 2023, Hunt and general contractor Nan Inc. will be close to wrapping up the Daniel Kahikina Akaka Department of Veterans Affairs Community-Based Outpatient Clinic. Hunt also expects to submit plans for City and County approval of its next set of infrastructure improvements to support new housing and commercial developments between Saratoga and FDR avenues. “In addition,” Kay says, “we look forward to the successful processing of a new 137-unit affordable housing project.”
PHOTO COURTESY: THE IMAGE GROUP/GOODFELLOW BROS.
IMAGE COURTESY: GENTRY HOMES LTD.
By the end of 2023, Hunt and general contractor Nan Inc. will be close to wrapping up the Daniel Kahikina Akaka Department of Veterans Affairs Community-Based Outpatient Clinic. Hunt also expects to submit plans for City and County approval of its next set of infrastructure improvements to support new housing and commercial developments between Saratoga and FDR avenues. “In addition,” Kay says, “we look forward to the successful processing of a new 137-unit affordable housing project.”
This project will join a new cohort of West Side residential developments—notably Ka‘ulu, Gentry Homes’ new 29.8-acre community.
“The size of the first phase is approximately 12 acres, and is located at the corner of Roosevelt and Copahee avenues,” says Leonard Leong, Royal Contracting Co. Ltd. president. “Mass grading is scheduled to start in early December [2022] and utilities and roadways in March, pending approval by the city. Construction time is nine months from the approved date.”
Quentin Machida, Gentry Homes Ltd. president and CEO, says that by expanding housing in the area, the developer is reaffirming the mission of Thomas H. Gentry, the company’s late founder. “As Ewa by Gentry gets close to the end of 40 years of providing housing opportunities for the Leeward market, Gentry looks to Kapolei and will start with Ka‘ulu—the first new residential community to be built since the establishment of the Kalaeloa Community Development District,” he says. Ka‘ulu “will help to fulfill the vision of Kalaeloa as a ‘Center of Excellence’ or ‘Wahi Hookela’ by providing a well-designed and livable residential community within Kalaeloa.”
Nearby, another new West Side community is on the way. “Kobayashi Group will introduce Parkway Village at Kapolei, a for-rent, low-income-housing tax credit development expected to break ground in April 2023,” says Alana Kobayashi Pakkala, Kobayashi Group LLC managing partner. “In partnership with Ahe Group, the 405-unit community will remain affordable for 73 years, offering low-income rental units for families earning up to 60% of the area median income.”
The proposed 10-acre mixed-use project offers low-income affordable rental housing ranging from studios to four-bedroom units. Also included are a commercial unit, vehicle and bicycle parking, pedestrian paths, roadway improvements, outdoor open spaces—and two preschools.
GRAPHIC COURTESY: DESIGN PARTNERS INC.
Nearby, another new West Side community is on the way. “Kobayashi Group will introduce Parkway Village at Kapolei, a for-rent, low-income-housing tax credit development expected to break ground in April 2023,” says Alana Kobayashi Pakkala, Kobayashi Group LLC managing partner. “In partnership with Ahe Group, the 405-unit community will remain affordable for 73 years, offering low-income rental units for families earning up to 60% of the area median income.”
The proposed 10-acre mixed-use project offers low-income affordable rental housing ranging from studios to four-bedroom units. Also included are a commercial unit, vehicle and bicycle parking, pedestrian paths, roadway improvements, outdoor open spaces—and two preschools.
“Kobayashi Group is deeply committed to investing in early childhood education in Hawaii,” Pakkala says. “Parkway Village at Kapolei includes a novel approach to this issue by including privately funded on-site early learning programs.”
Residents will be given enrollment preference at the two-classroom Village preschool. An additional four-classroom preschool, a collaborative effort by Kobayashi Group, Kamehameha Schools and Parents and Children Together (PACT), will serve low-income families in the surrounding community. “In total, approximately 120 keiki will benefit from these new programs each year,” Pakkala says.
Coastal Construction Co. Inc. is the Villages’ proposed general contractor. Construction is anticipated to run from April 2023 through April 2025. “Parkway Village differs from a typical affordable rental community as it is a multi-phased development,” Pakkala says. “Occupancy is expected to be phased-in beginning September 2024.”
West Side ventures like these can’t arrive soon enough. “The response in the Kapolei community has been tremendous,” says Pakkala. “We have received multiple inquiries from interested residents who are interested in applying for housing.” Kelley reports Avalon is “already seeing overwhelming interest from local business owners, as there is so little fee-simple industrial product available for purchase.”
As for Hunt in 2023, “there is opportunity to not only expand physically, but to also grow a customer base to service existing and new businesses and residents in the area,” Kay says. “These opportunities will stretch far beyond next year, and we are excited to be a part of the transformation.”
