The Central Ala Moana Affordable Housing Release
Here we go again, round two for Korean developer SamKoo Pacific as he is building his second tower, The Central Ala Moana. His first was an immediate sale, Kapiolani Residences and is currently being built, expected to be complete at the end of 2018. In the Ala Moana neighborhood there are state requirements with HHFDC but there isn’t a current development agency like the HCDA for Kakaako. From my understanding, the developers need to negotiate with the state/county on how many affordable units they would provide out of their projects. It has been pretty standard to be a 60/40 ratio, from Affordable to Market units. It was this case for Kapiolani Residences and will also be the case for this new development.
Let’s get into the nitty gritty on this one. Below are some details from the sales team on this project, please note that it’s the latest updates but with developments, things change often and on a short notice and are never guaranteed. Please only use this as a guide and reference. To start, here are the price ranges for the affordable and market units:
Affordable Units Studio: $286k+ (parking stall) 1 bed: $396k+ (parking stall) 2 bed: $493k+ (parking stalls) 3 bed: $700k+ (parking stalls) Market Price Units 1 bed: $580k+ (parking stall) 2 bed: $777k+ (parking stalls) 3 bed: $990k+ (parking stalls)
If you’re still here, application pick-up and sales supposedly start November 12th, 2018. You can go online to their website at: http://www.thecentralalamoana.com or walk into their sales center at: 1391 Kapiolani Blvd. – open daily 9am – 5 pm (approx.). I highly suggest you walk into the sales center with your preferred buyer’s agent who will represent you. This will give you the opportunity to be represented by an agent for FREE. If you don’t have representation then you will be assigned a realtor on the developer’s sales team and just keep in mind, their first priority will always be the developer and you as a customer, second. Same goes for if you decide to go online. Make sure to let the sales team know who you want as your designated realtor upfront and you will be good to go. Should you have more questions about this, please don’t hesitate to ask me. I am a Realtor Associate myself for the past 13 years and my goal is to educate you, give you the truth and let you make your own decisions on how you would like to proceed. I hate to see people suckered into traps, misled and uneducated on one of the largest purchase of their lives. Whether you choose to work with me or another well-qualified agent, I hope you feel empowered, educated and confident before you make any decisions.
A little more about the supposed Affordable Housing & Market Unit Process on this development: 1. Seminars have been released and have also sold out. There have been supposedly 3000 spots filled but this doesn’t disqualify you from filling out and submitting an application. And it certainly doesn’t mean you will be competing with 3000 applicants either. ‘A’ali’i had 150 units up for grabs and only had around 600 applicants. So you definitely have a chance and I highly suggest to just try. PS...I am pretty sure they will soon release more seminars since it sold out so quickly. 2. They will release a date when the Affordable applications are due and then HHFDC will review all applications and have a lottery. After the lottery will come unit selection and contracting. They anticipate the unit selection to be in January/February 2019 but the applications will be due usually around 30 days from sales release (November 12, 2018). 3. Supposedly, the Affordable units will have an initial $500 earnest money deposit that is due at unit selection and contract signing. Then within 30 days, 5% of the purchase price will be due (minus the $500 you already submitted). The market units will require a $10,000 earnest money deposit due at unit selection and contract signing. Then within 30 days, 20% of the purchase price will be due (minus the $10,000 you already submitted). They anticipate the market unit selection to be in December 2018, before the Affordable selection. A few other tidbits mentioned... •On Kapiolani Blvd. and Kona Iki Street •The tower is expected to take 2-2.5 years to complete from 2019. This really depends on when they break ground. •Proposed maintenance fee is $0.69/square foot. To put things into prospective, The Block 803 and Ohana Hale is estimated at $0.50/square foot and ‘A’ali’i is estimated at $1/square foot...a luxury tower with a plethora of amenities. •Expected to be similar to Kapiolani Residence with minimal amenities to keep operating costs down but it does look like a pool and deck area is projected.
Hope all this information helps get you started and excited about another great opportunity for the local market! Please reach out to me with questions! I am very well versed on Hawaii’s new developments and am a big supporter of Affordable Housing for Hawaii residents! Feel free to contact me, Christina Laney Mitre, RS-67243 with Elite Pacific Properties at 808-282-1399 or Christina@LaneyRE.com.
All images, renderings are courtesy of SamKoo Pacific, LLC