Salem Partners Receives Approval for $750 Million, Two-Tower, Mixed-Use Condominium/Hotel Project in Honolulu

Developer also proposed innovative affordable housing plan for 78
units on-site at 1500 Kapiolani

Second Salem Partners’ TOD project in Honolulu

LOS ANGELES–(BUSINESS WIRE)–Salem
Partners
, a leading Los Angeles-based real estate development
company, has received final approval from the Honolulu City Council to
build a second major project under Honolulu’s Ala Moana Transit Oriented
Development Plan. As part of the latest project, Salem proposed an
innovative affordable housing plan for 78 units to be built on the
1.42-acre site at 1500 Kapiolani Avenue.

“We have enthusiastically embraced the city’s new TOD plan and look
forward to the completion of the transit system in 2022,” said James
Ratkovich of Salem Partners. “And we are very proud of the affordable
housing plan we have created. It is an innovative solution for deeply
needed affordable units in Honolulu.”

Salem secured a special transit permit for 1500 Kapiolani that gives it
the right to build to 400 feet high instead of the 250 feet currently
allowed. Thus, the project will include two mixed-use towers, one at 400
feet and the other at 350 feet, connected by an iconic bridge that spans
from the 35th floor of the taller tower to the rooftop of the second.
The genesis for the unique bridge is the Hawaiian word “Kapiolani” which
means “heavenly arch,” said William Witte of Salem Partners. This
arch will include an infinity edge pool and entertainment areas as well
as providing stunning views of the island.

Salem plans a total of 450 hotel and residential units in the glass
towers at 1500 Kapiolani designed by Colorado-based architectural firm
[au] workshop.

The site, bounded by Kapiolani Boulevard on one side and Makaloa Street
on the other, will be activated with restaurants and retail shops at
ground level as well as extensive gardens and plazas.

Nonprofit affordable housing developer EAH
Housing
 will collaborate with Salem Partners to develop and manage
the affordable element that is designated for senior housing. Five
floors of apartments will be built atop the parking structure that is
adjacent to the flagship Walgreens. Recently Salem sold the Walgreens
building but retained the parking structure where it will now build
additional parking and the affordable apartments.

Salem’s Mana’olana Place project at Atkinson and Kapiolani across from
the Hawaii Convention Center will start construction in the second
quarter of 2018. A new Mandarin Oriental Hotel will anchor this
iconic mixed-use tower also designed by [au] workshop. Mandarin Oriental
Honolulu will include 125 guestrooms and suites and 107 branded
residences, which will provide some of the most luxurious private homes
with the finest amenities and services on the island. In October
2016, Mana’olana Place was the first development approved under the
city’s Ala Moana TOD.

“Salem’s projects will result in more than $1.6 billion in new
investments in Honolulu over the next five years,” reports Witte.
“We have tremendous confidence in the future of Honolulu as a growing
business and visitor destination.”

Both of Salem Partners’ Kapiolani Boulevard sites were previously
occupied by distressed properties. Mana’olana Place and 1500 Kapiolani
are already catalyzing more new investment in the area.

About Salem Partners

Founded in 1997, Salem Partners comprises three platforms: investment
banking, real estate development, and wealth management. Salem’s
investment bankers have completed billions of dollars of transactions in
various industries. The wealth management division provides customized
investment and family office services to clients who prize top-flight
expertise combined with in-depth relationships. Real estate development
is headed by industry veterans experienced in all segments of the built
environment.

Contacts

For Salem Partners
Barbara Casey
310.636.1888
bcasey@caseysayre.com