Hawaii Portfolio
LOCATION
Kaka’ako, Oahu
Kapolei, Oahu
Lahaina, Maui
Kailua-Kona, Hawaii
BUILDING SIZE
1,221 units of affordable housing for seniors and families
COMPLETION DATE
Acquired in 2019 and 2020; Rehabilitations expected to be complete 2021-2023
ASSET TYPE
Affordable
PROPERTY TYPE
3 high-rise properties and 3 low-rise properties
Community Spotlight
The portfolio consists of six affordable rental housing and mixed-use properties with a total of 1,221 residential units and approximately 86,000 square feet of commercial space.
The Challenge
Understanding the limited LIHTC resources in Hawaii, Standard Communities pursued an innovative structure that utilized a long-term ground lease, allowing the State of Hawaii Housing Finance & Development Corporation (HHFDC) to retain ownership of the buildings. The deal was structured to enable HHFDC to pay down debt and fund other affordable housing initiatives throughout the State of Hawaii. This structure simultaneously allowed for the preservation and improvement of the properties and provided avenues for the state to create more affordable housing throughout Hawaii.
The Game Plan
In partnership with HHFDC and Honolulu-based Stanford Carr Development, we closed on an innovative $223.9 million public-private partnership that repositioned 1,221 units of affordable housing across six properties located on the islands in Hawaii. The ambitious project was designed to achieve the dual goals of rehabilitating the properties for long-term preservation of the portfolio while fulfilling the State’s commitment to minimize displacement of existing tenants.
The Outcome
Hawaii has some of the highest housing prices in the nation. As the housing shortage persists, so do the high prices – increasing the need for high-quality, affordable housing. For too many Hawaiians, the high cost of housing can be yet another burden on already strained household budgets. The substantial acquisition and rehabs of the properties will provide residents with comfort and financial security for years to come.
