The Michaels Organization and ʻIkenakea Development LLC were awarded a long-term lease to master plan and develop a residential community on a 19.4-acre property in Kapolei, one of the largest remaining undeveloped properties in the Villages of Kapolei.
The property at Farrington Highway and Fort Barrette Road, oft-referred to as the “Kapolei Northwest Corner,” is adjacent to the Daniel K. Akaka State Veterans Home, reportedly opening in the spring, and across from the Kapolei Walmart.
The new community will be called “Haku Kapolei,” drawing its name from the intricate, braided lei haku to describe the new, mixed-use community.
Haku Kapolei will be built in three phases:
Phase 1 will consist of 344 rental units priced for households earning 30%, 50% and 60% of Oʻahu area median income (AMI) or less, as set by the U.S. Department of Housing and Urban Development (HUD). These units will be spread across two multifamily structures.
Phase 2 will consist of an additional 376 units in two, multifamily buildings, priced for households at or below 30%, 50% and 60% AMI. In addition, Phase 2 will include approximately 95,000 square feet of commercial space, including a grocery store.
Phase 2 also includes a proposed option to add 130 additional units via a “higher density alternative,” that may allow for two 170-foot midrise towers, if entitlements and financing can be obtained.
All rental units must remain designated as affordable for 75 years, the life of the lease, during which time the developers must pay a nominal lease rent for the properties.
Phase 3 will consist of 50 for-sale units in nine, three-level fee simple townhomes, priced for families earning between 80% and 140% AMI.
Currently, approximately 4,000 residential units have been built in the Villages of Kapolei. Roughly two-thirds of those units are defined as affordable.
“We applaud these two experienced and respected homebuilders for forming this partnership and taking on this project,” said Governor Josh Green, M.D. “Affordable housing is among the top priorities for this administration and Haku Kapolei will help us fulfill my promise to provide more housing for kamaʻaina families.”
“We look forward to this partnership completing the development of the Villages of Kapolei master-planned community which was initiated by the state of Hawaiʻi over 30 years ago,” added Dean Minakami, HHFDC executive director.
The master plan for the Villages of Kapolei dates to the late 1980s, envisioned by former Governor John Waiheʻe and the Housing Finance and Development Corporation (HFDC), the agency that preceded HHFDC. Waiheʻe long promoted the development of Kapolei into Oʻahu’s “second city.”
