Recently, Avalon Group, the developer for Hale Ka Lae announced its plans to convert over 200 rental units to condominiums. The 269-unit complex located at 7000 Hawaii Kai Drive was built in 2016 to help fill demand for more rental housing with 54 units pegged as affordable rentals.
The condo conversion will consist of two, three, and four room units ranging from 719SF to 1,154SF. All units will come with one parking stall and larger units have an option for an additional stall. Units will come partly furnished with split air conditioners, washer/dryers, and range/oven. Amenities include pool, hot tub, fitness area, kids play area, and cabanas. One key feature at Hale Ka Lae are the lockout units. These lockout units have separate entrances giving the owner the option to occupy the entire unit or rent out a portion of it. Projected associations dues are $.56 per square foot.
The developer has plans to only convert and sell one building. The second building located at 7002 Hawaii Kai will remain affordable rentals with 56 units. The project faced challenges with market rate units unable to subsidize the low-income rentals. Tenants on current leases will be allowed to stay until the expiration unless their unit is purchased by an investor. Current tenants will have the option to purchase their unit and will receive a credit off the total rents they have paid. Prices are projected to started in the low-$500K’s for a two-room unit and mid-$700K’s for three and four room units.
Sales are anticipated to start in the fourth quarter of 2018 with the first round of units closing by the end of the year or early 2019. The developer is offering non-binding pre-registration agreements for interested buyers.