LIVE + WORK + INVEST Christine Camp PRESIDENT & CEO, Avalon Group Alicia Moy PRESIDENT & CEO, HAWAI‘IGAS Art Ushijima PRESIDENT & CEO, The Queen’s Health Systems TAPPING KAPOLEI’S INVESTORS ARE BULLISH ON KAPOLEI THE DYNAMICS EXPANDING WESTERN KAPOLEI: OF GROWTH KALAELOA HARBOR THE NEXT FRONTIER p. 12 p. 20 p. 28 KAPOLEI 1 Live + Work + INVEST Live + Work + INVEST Investors are Pro t Grows Here Bullish on Kapolei ITH THE ECONOMY ON THE UPSWING, there has never been a better time to invest in Kapolei. The momentum W of a recovering economy is fueling interest in the region, where investment opportunities are made even more attractive with the availability of entitled, development-ready land. CONTENTS Investors remain bullish on Kapolei as the public and private sec- tors continue to build upon the groundwork that began with a vision FEATURES based on public policy - directing Oahu’s growth to the region. 6 Tapping Kapolei's Growth In this issue of Kapolei Magazine, we take a look at some of the many investors who are shaping the City of Kapolei and the 14 The City of Kapolei: Room to Grow broader Kapolei region. Their investments in these areas in the 20 State of Hawaii to Expand Kalaeloa Harbor region are attracting new businesses and creating jobs: 23 Bringing Essential City Services to Kapolei THE CITY OF KAPOLEI, where the public and private sector are defining the urban core; 28 Western Kapolei: The Next Frontier WESTERN KAPOLEI, where zoned land in three projects 36 Ewa: Bringing Services to a Booming is ready for development and represents some of the last Residential Area opportunities to get in on the ground floor in Kapolei; 40 James Campbell Industrial Park KALAELOA, where new life is being infused into what was 44 Renewing Kalaeloa once a naval air station; 50 East Kapolei JAMES CAMPBELL INDUSTRIAL PARK, which provides much of the state’s infrastructure; 58 Ko Olina EWA, where master-planned residential communities and a sizable resident population are attracting businesses and jobs; Hurry, only a few investment opportunities remain PROFILES EAST KAPOLEI, where the University of Hawaii – Everything is growing in Kapolei. Jobs. Population. Housing. West Oahu anchors the area’s development; and, 19 Rockne Freitas KO OLINA, where a full-fledged resort destination offers UH West Oahu Chancellor Infrastructure. Rail transit. Income. Investments. And profi ts. an alternative experience to Waikiki. 26 Vida G. Bottom Take advantage of the benefi ts of Hawaii’s fastest growing Taken as a whole, they are the drivers of growth in the region, FBI Special Agent in Charge whose long-term investments are filling in the dazzling mosaic that 34 Susan Murray region and fi nd out how you can invest in success like Costco, is Kapolei. There are still facets to fill, and there was never a better Queens Medical Center COO time to fill them. Target, Disney Vacation Club, University of Hawaii-West Oahu, 43 Jose Bustamante Hunt Hawaii Vice President Gentry Investment Group, MacNaughton Group, Kobayashi 55 Mary Flood Group, Avalon Development Co., The Maryl Group and more. D.R. Horton Vice President Brad Myers, President 56 Keith Horita Kapolei Properties LLC They know a good deal when they see one. Find your Paradise Cover Luau President opportunity now and become Kapolei’s next success story. 61 Peter Merriman Monkeypod Kitchen Chef Theresia McMurdo Maya Leland EDITOR W R I T E R MAPS & GRAPHS 7 Hawaii Investment Sales Volume KAPOLEI MAGAZINE All contents copyright © 2013. Published in partnership with Kapolei Properties LLC and Hawaii Business magazine, 1000 Bishop Street, Suite 12 The Dynamics of Growth 405, Honolulu, HI 96813. Telephone (808) 537-9500. Printed in Hawaii. All informa- tion contained herein is based on information currently available to Kapolei Proper- ties LLC, and is subject to change at any time without notice. Statements contained 32 Kapolei Area Long Range Master Plan Map For more information contact: herein are not to be construed as official policy positions of Kapolei Properties LLC, James Campbell Company LLC, its affiliates or any of the developers or companies 62 The City of Kapolei Map Kapolei Property involved in the building of Kapolei. No rights or benefits of any type are inferred by this publication. www.kapolei.com 2 KAPOLEI KAPOLEI 3 11-13 Kapolei Prop Dev FP HB.indd 1 10/8/13 12:19 PM Live + Work + INVEST Live + Work + INVEST SOLAR A i’s ut ai ho Hawaii’s Best Companies Choose w ri a ty H L d o e HAWAII’S BEST t c a a OCEAN r l e l MW y 57 p - O O - w Installed y l n l a e c d o L Since LAND 2004 SOLAR PEOPLE SPIRIT Visit KoOlina.com for golf, activities, dining and resort information. Call Today: 262-6600 www.sunetric.com Hawaii’s SOLAR Authority 4 KAPOLEI HIKAPOLEI LIC #C26505 5 11-13 Ko Olina FP HB.indd 1 10/2/13 5:11 PM 11-13 Sunetric FP HB.indd 1 9/27/13 4:25 PM Live + Work + INVEST Live + Work + INVEST HAWAII INVESTMENT SALES VOLUME VS. TRANSACTION COUNT (2QYD 2013) $Billions 300 $2.50 “From all appearances Kapolei $2.20 will remain at the forefront of 250 $2.00 the next development boom as 200 developers fulfill the vision of the $1.50 city as Oahu’s fastest growing 150 economic center.” 110 $1.00 —Mike Hamasu 100 Director of Consulting & Research Colliers International $0.50 50 $0.00 2005 2006 2007 2008 2009 2010 2011 2012 2013 YTD June Sales Volume YTD June Transaction Counts ©2013 Colliers Internationl Research and Tapping Consulting. All rights reserved. Kapolei’s Growth “Population growth between 2010 and 2035 is forecasted to mushroom to 164,556residents, Investor Confidence on the Upswing a gain of nearly 64 percent over this timeframe and serves as the THERE ARE CLEAR SIGNS that we are entering a boom cycle in the Hawaii real catalyst for future commercial estate market. What are those signs, and what does this mean for Kapolei and and industrial development.” investors who are looking for business opportunities in the region? DAYONDON ODEELO PHOTOS: For the first half of 2013, Hawaii’s that Kapolei begins to shine. This re- – Safeway) and Kapolei Village Center E ASKED MIKE So, is Hawaii truly entering with solid job growth and rising real commercial real estate investment gion of Oahu provides an opportunity (Foodland) projects seeking to meet HAMASU, Direc- a boom cycle? personal incomes. marketplace posted a robust 135 to capitalize on available, affordable the rising consumer demand being tor of Consulting percent increase in sales volume over land for residential, commercial and generated in the area. and Research for Does this mean that real es- industrial development. Population From all appearances, the reces- tate investment and develop- 2012 levels. More than $2.2 billion Colliers Interna- sion’s impact is waning and Ha- in properties traded hands. The real growth between 2010 and 2035 is What are some of the op- tional to weigh in. ment activity will also be on estate cycle, which corresponds with forecasted to mushroom to 164,556 portunities you see in this waii’s economy is entering a boom the rise? Hamasu collects cycle. Following the boom in tourism, market and development conditions, residents, a gain of nearly 64 percent current market? and analyzes Hawaii’s construction sector is poised In addition to the improvement is again poised for its growth and over this timeframe and serves as valuable market for dramatic growth as the combina- in the economy, financial markets expansion phase. the catalyst for future commercial As retailers “follow rooftops,” pro- data and is a rec- tion of commercial development and have stabilized after the aftermath and industrial development. Already posed residential developments such ognized expert public sector projects surge forward. of the global financial crisis. Bankers What does this mean there is construction activity on the as Kapolei West, Makaiwa Hills, and in the area of commercial real estate Economic forecasts from the State De- are aggressively seeking borrowers for for Kapolei? upswing, with local and national Ho’opili will fuel even stronger interest trend analysis. A number of develop- partment of Economic Development loans, and low interest rates are spur- developers jumping into the market, in the area for retail development. Not ers, investors and companies rely on and Tourism and the University of ring interest in real estate investment It’s against this backdrop of posi- with the Kapolei Commons (The Mac- to be outdone, Kapolei’s industrial sec- his forecasts of the Hawaii market to Hawaii Economic Research Organiza- and development activity. tive economic and financial news Naughton Group), Promenade (PDC tor is also thriving. inform their decisions. tion point to a strengthening economy CONTINUED ON PAGE 8 PHOTO: BRAD GODA BRAD PHOTO: 6 KAPOLEI KAPOLEI 7 Live + Work + INVEST Live + Work + INVEST CONTINUED FROM PAGE 7 Hawaiian Dredging recently built a new facility and Rengo Packaging’s new facility has its walls up. Fully-en- titled zoned industrial land is project- ed to continue to be in short supply “Once the user and will likely result in an increase in land values. Luckily, several industrial marketplace parks are being planned for the area HE BEAUTY OF HOAKALEI CONTINUES TO UNFOLD realizes that with Kapolei Business Park Phase II T . anticipated to receive its tentative ‘location’ will be subdivision approvals shortly. As the New neighborhoods are opening, unveiling a fresh new selection of limited to Kapolei, industrial sector continues to grow, the Kapolei market will be the focus island-inspired home designs.