In October, affordable housing developer Mark Development Inc. (MDI) announced that Kyle Watase would step into the role of company president, following in the footsteps of his father, Craig Watase. Kyle is now the third generation of the family to lead MDI, which was founded by Kyle’s grandfather, Mark Watase, in 1977.
Craig will shift into the CEO chair, while Craig’s brother, Paul Watase, will continue as executive vice president.
As president, Kyle, who has been with the company since 2016, will oversee all facets of MDI’s development and property management projects, including financing and construction.
Craig compares the milestone to his own advancement in the company’s ranks years earlier.
“I remember bringing a fresh perspective and a lot of new technology and processes to MDI when I first started here,” he said in a press release announcing the changes. “This next generation is better prepared to lead us into a new era of affordable housing development and property management.
“Our experience as both developer and property manager makes Mark Development a unique leader within the industry. Kyle understands both and has a smart, energetic team to support him.”
THE PRODIGAL SON
Despite the familial ties, Kyle’s path to becoming company president wasn’t a given, after taking a detour earlier in his life to see the world and try his hand at another career option.
Kyle played baseball at the University of Hawai‘i – Hilo during college, then took his talents on the road, getting picked up by the Musashi Heat Bears in the the eighth round of the Route Inn BC League of Japan’s professional baseball draft.
“In 2016, after my one-year stint in Japan as a professional baseball player, I was backpacking in Southeast Asia and after a month and a half of traveling, I decided I really wanted to learn and join the family business,” Kyle recalls. “Prior to that, I never had any intention of joining the company, nor did I have any pressure from my dad,” he insists. “In fact, Dad told me to do anything but join the company!”
GROWING UP IN THE COMPANY
With a father, uncle and grandfather active in the family business, it’s no surprise to learn Kyle spent a lot of time in the office growing up, passing his time there when he wasn’t playing sports or involved in other extracurricular activities.
“I would see my dad and uncle at the office every day, and also my grandparents, Mark and Gerry, when they were still in the business,” he says. “Looking back, I was lucky to see my grandparents every day and have a close relationship with them. My grandma would remind me daily that this is a work office and not a playground!”
When he eventually joined the company in 2016 after his adventures in Asia, Kyle was a self-described “sponge,” absorbing all the knowledge he could from his family and the company’s impressive track record built up over its previous 25 years.
“Craig and Paul had already developed over 1,000 units, primarily subdivisions across O‘ahu and Kaua‘i” before Kyle joined the company, he says. “Both have been in the industry for over 25 years, or five development cycles, so being able to learn and watch them was invaluable.”
Arguably the most valuable lesson that Kyle learned — to always treat people fairly — came directly from his grandfather, Mark.
“[My grandfather] tried to be fair whether it was negotiating change orders, cost overruns or within the company amongst his own employees,” says Kyle. “This was passed down to the next generation and the next to me, and continues to be a part of how we do business.”
PAST, PRESENT & FUTURE
MDI has built an impressive portfolio of affordable housing projects statewide. The company currently has 21 projects in its property management portfolio and has had a hand developing and/or managing notable properties on Kaua‘i, O‘ahu and Hawai‘i island.
These projects include Kapolei Ho‘olimalima, which was one of Kyle’s first, converting 70 low-income renters to single-family homeowners via the LIHTC program.
“The equity that was created and passed along to these families from the LIHTC program created opportunities for families they may not have had before, and this was something I wanted to do again and again,” he says.
Koa‘e Makana is another project he’s particularly proud of, working with the County of Kaua‘i through the full development cycle, from design to leasing, providing affordable housing to local families.
“The most rewarding part, again, was working with the applicants during the leasing process and handing them the keys to their new home,” says Kyle.
Not content to rest on their past accomplishments, MDI looks optimistically toward the future, including a recently awarded project with the Department of Hawaiian Homelands, building 82 single-family residences in Hanapepe.
The first phase of the project will consist of 30 rental units eligible for the Low-Income Housing Tax Credit (LIHTC).
“While completion is estimated in Q4 2026, it’s exciting to develop housing for the DHHL and to be an integral part of housing Native Hawaiians on homelands,” says Kyle.
The plan, he explains, will follow a similar model as Kapolei Ho‘olimalima, where units are rented out with an option to buy via the LIHTC program after the 15th year, turning low-income renters to homeowners.
Looking ahead, Kyle says MDI will continue its focus on development and property management and of affordable housing projects.
“We are growing with our property management division, and managing that growth and expansion responsibly is a high priority for us,” he says.
This includes contracting to manage properties developed by others, such as Ikenakea Development.
“We’ve come a long way from a small family business with five employees in-office managing 150 units, to 10 staff in our main office and 48 employees across the 23 properties we currently manage,” Kyle says.
He also sees MDI pushing its technological capabilities forward while the company transitions to a new property management software package and keeps artificial intelligence on their radar for possible ways to improve operations.
With so many exciting opportunities and added responsibilities as president, one could wonder how — or even if — Kyle ever manages to wind down and relax.
He’s quick to respond that his wife is his rock, and a high priority in his life is traveling and spending time with her. And he even manages to find some time for a favorite pastime.
“Staying active is important and I do that by golfing and recently becoming an avid cyclist,” he says. “I also still play a little bit of men’s league baseball, AJA, to get my fix from the past.”
