Local developer JL Capital has acquired three contiguous properties along the Kapi‘olani corridor for a combined price of $36 million.
The parcels, which total about 1.3 acres, are located at 1322, 1338 and 1356 Kapi‘olani Boulevard.
“This acquisition reflects our long-term vision for the Kapi‘olani corridor as a vibrant, high-density neighborhood within the Ala Moana neighborhood,” Tim Lee, CEO of JL Capital said in an announcement Friday. “With this site, we’re excited to continue shaping and improving the existing corridor with a thoughtfully planned and connected project that will elevate the experience of living in urban Honolulu.”
Details on a project scope and timeline will be announced as plans progress, the announcement noted.
Lee told Aloha State Daily via email that the parcels "presented a rare opportunity to secure a sizable, contiguous footprint in one of Honolulu’s most well-connected and visible urban corridors."
Their location makes the properties "exceptionally well-suited for a future project that supports the area’s evolving mix of residential, commercial and transit-oriented uses," he says.
"Another advantage of the Kapi’olani corridor is the potential for excellent ocean views due to the open sightlines over Ala Moana Center and surrounding mid-rise structures."
Honolulu property records show that 1322 Kapi‘olani last sold in August 2022 for $6.85 million. Meanwhile, 1338 Kapi‘olani sold for nearly $20.4 million and 1356 Kapi‘olani sold for a bit more than $10.7 million in September of that same year — a total sale price of nearly $38 million. Hoaka Heights, LLC was the fee holder for all three parcels, according to the records, which don't appear to have been updated since the JL Capital acquisition.
"We see the Kapi‘olani corridor as one of Honolulu’s most dynamic areas of growth, connecting Ala Moana, Waikīkī and Downtown with access to retail, recreation and emerging transit infrastructure," Lee told ASD when asked about the developer's focus on the area. "It's a natural location for thoughtfully designed projects that align with the city’s long-term vision for a walkable, connected urban core. Our investments here are part of a long-term vision."
JL Capital, a real estate and private equity firm founded in 2017, has completed or initiated a number of major projects in Honolulu's Ala Moana neighborhood and along the Kapi‘olani corridor in recent years, Lee says.
That includes Sky Ala Moana, a $507 million mixed-use twin tower condominium and hotel at 1388 Kapi‘olani Blvd. Renaissance Honolulu Hotel & Spa, a Marriott brand, is located in its East Tower.
Meanwhile, owner-occupant sales for Muse Honolulu, the developer's planned luxury high-rise at 1538 Kapi‘olani Blvd. were set to begin this summer. Lee says construction on this project is slated to start in 2026.
In May, JL Capital broke ground on Amana Lofts, an adaptive reuse project that will convert a five-story former office building at 765 Amana St. into affordable rental apartments. A ground-up project at 1564 Kalākaua Ave. will create another 37 affordable units.
"Each project serves a different market need — ranging from affordable rentals to hospitality and market-rate ownership — and collectively, they contribute to the emergence of a 'neighborhood within the neighborhood,'" Lee says.
In June, it also was announced that JL Capital acquired a 40% ownership stake in Tournet Hawai‘i Inc., a travel and transportation agency focused on the Korea-Hawai‘i market.
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Stephanie Salmons can be reached at stephanie@alohastatedaily.com.
