A new apartment opened last week in ‘Aiea, bringing 302 affordable rentals to the community.
Located across from Pearl Harbor, the 25-story Nāulu Apartments was developed through a public-private partnership led by California-based Pacific Development Group.
Ground broke on the complex in June 2023. At that time, it was called Hālawa View Apartments II, the second phase of Hālawa View Apartments, which was renovated in 2014.
But the journey to get here actually began when conceptual plans were developed around 2017, PDG President Joe Michael told Aloha State Daily in an emailed response to questions.
"After the entitlements were approved through the City and County, we applied for LIHTC [Low-Income Housing Tax Credits] from the state and were subsequently awarded in late 2019," he says. "Then Covid-19 hit and like many projects in the pipeline during the pandemic, our timeline was delayed. We were hit with construction cost increases, interest rate increases, permitting delays and tax credit pricing decreases (less equity into the deal).
"However, once we had completed all that and finally broke ground, the construction proceeded quickly," Michael continued. "Our contractor, Nordic PCL, completed the project ahead of schedule and under budget. We utilized the savings to implement upgrades for the residents."
The $168 million project received financing from the Hawai‘i Housing Finance and Development Corp., the City and County of Honolulu and Bank of Hawai‘i, with LIHTC, "syndicated by Hunt Capital Partners through a proprietary fund with JP Morgan Chase," a recent announcement from the developer noted. The government financing requires that rents remain affordable for low-income households for at least 61 years.
Nāulu — designed by AHL — offers studio, one-, two- and four-bedroom units for households earning between 30% and 60% of the area median income, values that vary depending on household size.
Currently in the City and County of Honolulu, the income limit at 60% AMI is $63,840 for a single person, $72,960 for a couple and $91,200 for a four-person household. You can find the current income limits here.
Rents, based on the 2024 U.S. Housing and Urban Development guidelines, will range from $704 for a studio for individuals at the 30% AMI level to $2,402 for a four-bedroom for those making 60% AMI, according to the announcement.
For its residents, Nāulu offers a fitness center, kids' club, study lounge for after-school programs, a multi-level sky lounge with views of Pearl Harbor and an outdoor plaza with barbecue and picnic areas, the announcement notes. There are also charging stations for electric vehicles, car share access, bike storage and the complex is within walking distance of the Skyline rail station at Aloha Stadium.
Local artist Kamea Hadar also created a mural with an ‘iwa bird inspired by Nāulu's namesake, has curated eight other artists to "enhance the common areas" of the complex and is designing a second mural on the parking garage with the help of local residents, the announcement says.
“Nāulu Apartments is an incredible achievement and a powerful example of what we can accomplish when government, developers, and community partners come together with a shared purpose,” Mayor Rick Blangiardi said in the announcement. “This project delivers more than 300 affordable homes for local families at a time when housing is our most pressing challenge. We are deeply proud to support developments like this that provide stability, opportunity, and hope for generations to come.”
Michael says PDG is a third-generation, family-run company whose mission has "always been about creating communities where families can thrive."
"Hawai‘i faces one of the most severe housing crises in the country — rising costs and limited land make it especially challenging for working families to find a safe and affordable place to live," he continued. "Our family has been developing, preserving, and operating affordable housing on O‘ahu since the mid-1990s. Over the years, we’ve developed more than 4,000 multifamily units in the Western United States, with over 620 located in Hawai‘i and another 212 in the pipeline for Maui. Each project is an opportunity for us to contribute to the local community and help alleviate the pressure on families struggling to stay in the place they call home."
It's "incredibly rewarding" to see this project come to fruition.
"A project of this scale requires years of planning, countless hours of collaboration, and perseverance through the hurdles that arise along the way," Michael says. "At the recent grand opening, a few families came up to me and expressed their gratitude for being able to live at Nāulu. They told me their stories, holding back tears, and were filled with happiness and gratitude. That is what it’s all about — knowing that 300 families appreciate all the work you put in for all those years."
Some studio units are still available. Applications can be found at NauluHawaii.com or by visiting the Nāulu leasing office onsite at 99-009 Kalaloa St.
More about Pacific Development Group's other projects in the Islands can be found here.
Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
