The Howard Hughes Corporation® Obtains Construction Financing for Two Residential Buildings at Ward Village®
HONOLULU-- The Howard Hughes Corporation® (NYSE: HHC) announced today that it has successfully closed two construction loans totaling over $372 million for the development of the Ae'o and Ke Kilohana mixed-use projects currently underway in Ward Village® in Honolulu, HI. Both buildings have already contracted to sell the majority of their residences, with 91% of Ke Kilohana’s homes and 57% of Ae'o's homes under contract.
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Ae'o Tower in Ward Village with Whole Foods Market (Photo: Business Wire)
A $143 million partial recourse facility has been obtained for the development of Ke Kilohana. U.S. Bank will serve as the agent bank and lead lender for a syndicate that includes First Hawaiian Bank, ULLICO, American Savings Bank, Bank of Hawaii, Central Pacific Bank and FNB Alaska. The project, comprised of 375 reserved housing condominiums for local residents and 49 market rate condominiums with a flagship Longs Drugs (CVS) at the base of the high-rise, broke ground in October and is expected to be completed in mid-2019. In April, all of the reserved homes offered were under contract in less than five days after commencing sales.
A $230 million non-recourse facility provided by Bank of the Ozarks will finance construction of Aeʻo, a 466-home mixed-use building to be anchored by a flagship Whole Foods Market®. The high-rise broke ground this past February and is expected to complete construction in late 2018.
Randy Fleisher of Hamilton Realty Finance arranged the transactions.
“With its unmatched product quality across a wide range of offerings, Ward Village continues to generate strong demand and transform into one of the leading urban master planned communities in the world,” said Grant Herlitz, President of The Howard Hughes Corporation. “These two financings are a testament to our extensive relationships with both national and local lenders and their commitment to our vision for Ward Village.”
Having contracted to sell more than 1,100 homes to date with three buildings under construction and one recently completed, the 60-acre Ward Village community is rapidly transforming into a vibrant walkable neighborhood that offers a carefully curated mix of exceptional residences, top architectural design and a diverse collection of dynamic retail experiences, including the world renowned Nobu restaurant which opened in December as part of Waiea®, the first tower to welcome residents to the community. At completion, Ward Village is expected to comprise over one million square feet of retail space and more than 4,000 new residences in a market where supply continues to fall short of demand for new housing.
About Ward Village®
Currently under development by The Howard Hughes Corporation, Ward Village is a 60-acre master-planned community located in the heart of Honolulu between downtown and Waikīkī. Along with its first residences, Waiea®, Ward Village includes three additional mixed-use residential towers – Anaha®, Aeʻo and Ke Kilohana – that are now under construction and will continue to transform the popular shopping and dining district into a vibrant neighborhood offering exceptional residences with incredible island and ocean views and a carefully curated mix of retail experiences set among dynamic public open spaces and walkable streets.
Completed in late 2016, Waiea includes 174 residences and is home to internationally acclaimed restaurant Nobu Honolulu. Anaha, opening mid-2017, will include 317 residences and the first Merrimanʻs restaurant on O‘ahu. Aeʻo will open O‘ahu’s flagship Whole Foods Market in 2018 and will complete its 466 new homes in late 2018. Ke Kilohana is slated for completion in 2019, and the 424 home tower will welcome a flagship Longs Drugs to the neighborhood.
A fifth project, currently available for sale, is Gateway Towers on Ala Moana Boulevard that will bring the design of world-renowned architect Richard Meier to the Honolulu skyline.
The vision for Ward Village is consistent with the master plan approved by the Hawaiʻi Community Development Authority in 2009, which allows for up to 9.3 million square feet of mixed-use development, converting into more than 4,000 residences and over one million square feet of retail space.
Ward Village is Hawaiʻi’s only LEED-ND Platinum-Certified project and the largest neighborhood development in the country to receive such a prestigious certification. Additionally, the Kaka‘ako area was also recently named by Trulia as the top neighborhood with the best amenities in cities of under one million people.
The Information Center and Residential Sales Gallery is located at the iconic IBM Building located at 1240 Ala Moana Blvd. For more information, visit www.wardvillage.com or call 808.369.9600.
About The Howard Hughes Corporation®
The Howard Hughes Corporation owns, manages and develops commercial, residential and mixed-use real estate throughout the U.S. Our properties include master planned communities, operating properties, development opportunities and other unique assets spanning 15 states from New York to Hawai‘i. The Howard Hughes Corporation is traded on the New York Stock Exchange as HHC with major offices in New York, Columbia, MD, Dallas, Houston, Las Vegas and Honolulu. For additional information about HHC, visit www.howardhughes.com or find us on Facebook, Twitter, Instagram and LinkedIn.
Safe Harbor Statement
Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “expect,” “enables,” “realize”, “plan,” “intend,” “assume,” “transform” and other words of similar expression, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s expectations, estimates, assumptions, and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially are set forth as risk factors in The Howard Hughes Corporation’s filings with the Securities and Exchange Commission, including its Quarterly and Annual Reports. The Howard Hughes Corporation cautions you not to place undue reliance on the forward-looking statements contained in this release. The Howard Hughes Corporation does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.
The Howard Hughes Corporation
Caryn Kboudi, 214-741-7744
For Investor Relations
The Howard Hughes Corporation
David O’Reilly, 214-741-7744
Chief Financial Officer
Source: The Howard Hughes Corporation