A former office building, just a short distance away from Ala Moana Center and near the planned Ala Moana rail station, will soon have new life and bring dozens affordable rentals to Honolulu's urban core.
Dubbed Amana Lofts, JL Capital's adaptive reuse project will convert the five-story building at 765 Amana St. in Ala Moana into 32 studio, 20 one-bedroom and 12 two-bedroom apartments.
The units will be available for households making at or below 80% of the area median income. According to income limits published by City and County of Honolulu, 80% AMI is $121,600 for a household of four, however, qualifying incomes vary based on household size.
A ceremonial groundbreaking and blessing for the project was held Friday.
JL Capital is a real estate and private equity firm founded in 2017.
CEO Tim Lee said in a statement that by building affordable rentals in Ala Moana, "we're putting people closer to their jobs, transportation and daily needs, helping to reduce both housing costs and commute times for local residents.
He told Aloha State Daily after the ceremony that JL Capital acquired the property in 2018 with the rental conversion in mind.
"We have long-term plans for this area," he said. "Our focus is here on Ala Moana and this was sort of a passion project for everyone in our company. ... We're in this live-work-play area called Ala Moana, and we think this is going to be a great addition to this area."
JL Capital developed Sky Ala Moana, a $507 million mixed-use twin tower condominium and hotel at 1388 Kapi‘olani Blvd. Underway now is a luxury residential and mixed-use project at 1538 Kapi‘olani Boulevard called Muse Honolulu. Designed by architectural firm Bohlin Cywinski Jackson, its sales gallery opened last month.
Amana Lofts, however, is one of two projects JL Capital has underway that will offer 80% AMI rentals.
The second, a ground-up project at 1564 Kalākaua Ave., is set to get underway in about six months and will create another 37 units, Lee told ASD.
When asked why affordable housing in general is something the developer wanted to pursue, Lee said, "We need rentals. We need rentals in the city and we want to help meet that need."
Ahead of the ceremony, Michael Vachio, senior vice president of construction and development, told ASD that the apartments at Amana Lofts will have high ceilings and high quality, "very modern finishes."
"We think that it's really going to help families," he said. "This is the urban core. It allows them to walk to the mall. It's in close proximity to the bus routes as well as the future rail station."
The development also will have car share and bike share options, on-site parking and elevator access.
Vachio said an affordable rental project is "good for the community. ... We do need more affordable housing and that's something that we want to do."
The adaptive reuse of an existing building offers cost savings because you don't have to build new spaces or structures, he said. For this project, Vachio said the developer plans to gut the entire building and "clean everything out, except for the structure." The spaces, he said, will be "basically all new except for the concrete."
Work is expected to be finished by June 2026. Vachio said the estimated cost of the project is around $14 million.
Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
