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HONOLULU, Hawai‘i, July 5, 2023 – In partnership with Pacific Development Group (PDG) and Hunt Development Group (HDG), Hunt Capital Partners (HCP) announced the closing of $68.9 million in Federal Low-Income Housing Tax Credit (LIHTC) equity and $24.4 million in State LIHTC equity financing for a high-rise development overlooking Pearl Harbor. This project, known as Hālawa View II, will add 302 new affordable homes to the existing community located on the island of O’ahu. 

Hālawa View II will provide additional housing options for low-income families earning up to 30, 40, 50, and 60 percent of the area median income. The new homes will complement the existing Phase I of Hālawa View, which offers 121 units and includes a 14-story high-rise building and two, three-story buildings. Phase I was originally built in 1972 and renovated in 2012 with LIHTCs syndicated by HCP. 

Hālawa View II is the result of a successful collaboration between the State of Hawai‘i, the City and County of Honolulu, PDG, HDG, and HCP. This initiative aims to address the urgent need for more affordable housing in Honolulu, where housing costs are 214% higher than the national average according to a recent PayScale report.

This project’s 302 units will include 36 studio, 114 one-, 138 two- and 14 four-bedroom units in an 18-story high-rise atop a 7-story podium parking garage with 454 parking stalls. Notably, five units will be designated for chronically homeless individuals or those in public support services with referrals provided by U.S. Vets; additional service coordination will be available to them by the referral agency at no cost.

“We’re thrilled to help Pacific Development Group bring to fruition its vision to efficiently develop a portion of the underutilized parking on the Hālawa View site to help address the need for affordable housing in Honolulu,” said Dana Mayo, executive managing director of HCP. “Honolulu has such a dire need for affordable housing and has severe traffic congestion. This development will help alleviate both issues by providing residents with affordable rents and walking access to Honolulu’s new rail line, enabling residents to reach many neighborhoods around the city with ease.”

Residents at Hālawa View II will benefit from a range of amenities, such as a community room, exercise facility, playground, and central laundry facilities. Security features will include video surveillance and perimeter fencing. The building will also incorporate energy-efficient fixtures in each unit, in addition to electric vehicle charging stations, low-flow plumbing, and low-water landscaping. 

The prime location of the 3.11-acre Hālawa View II site between Aloha Stadium and Arizona Memorial offers convenient access to Honolulu’s new rail line, alleviating traffic congestion and enabling residents to explore different neighborhoods with ease. Additionally, the outdoor plaza, overlooking Hālawa Stream, will provide barbecue and picnic areas, as well as stunning displays of public art.

“This closing represents an initial vision and years of planning and collaboration with the community and stakeholders,” said Joe Michael, president of PDG. “We hope this project will be a catalyst to transform the area into a vibrant community near Arizona Memorial and Aloha Stadium that aligns with the Hālawa Area TOD Plan developed by the City and County of Honolulu.”

The long-awaited Hālawa View II project is a collaboration involving Pacific Development Group as the project’s developer and administrative general partner; Hawaiian Community Development Board as managing general partner; Hawai‘i Assisted Housing, Inc. as special managing general partner; Hunt Development Group as special limited partner; and Mark Development, Inc. as special general partner and property manager. Nordic PCL will serve as the general contractor; AHL as the architect and Group Pacific as construction manager. 

The total development cost for Hālawa View II is $168.1 million. Hunt Capital Partners facilitated the Federal LIHTCs through its proprietary fund, Hunt Capital Partners Tax Credit Fund 40, with JPMorgan Chase and will place the State LIHTCs through various funds with local investors. Construction financing included an $80.2 million tax-exempt loan and a $12.3 million taxable loan provided by the Bank of Hawai‘i with participation from American Savings Bank and Central Pacific Bank. Permanent tax-exempt financing will be provided by Bank of Hawai‘i in the amount of $24.6 million. Additional soft financing included a $42.3 million Rental Housing Revolving Fund loan from Hawai‘i Housing Finance and Development Corporation and a $5 million loan from the City and County of Honolulu’s Affordable Housing Fund, which will be lent to the partnership through Hawai‘i Assisted Housing.

“After working to bring this project to fruition for so many years, we are thrilled to be closer to putting more local families into such quality homes,” said Sharon Gi, vice president of HDG, a division of Hunt Companies. “Given the longstanding shortage of affordable housing in Hawai‘i, there is an overwhelming need for this type of rental project, especially in such a centrally located part of the island.”

This groundbreaking project is set to transform the area into a thriving community, aligning with the Hālawa Area TOD Plan developed by the City and County of Honolulu. The completion date is scheduled for the summer of 2025, bringing hope to local families in need of quality homes.

Environmental Social and Corporate Governance (“ESG”) Investing

Hunt Capital Partners recognizes that its institutional investors are seeking to increase the social value of their investments to help further their ESG initiatives. An investment in affordable housing not only improves the living conditions of its residents, but it also helps to remove obstacles that stand in the way of creating a healthy, safe and stable home environment for low-income families and seniors. When families spend less on housing related expenses, they have more resources available for other essentials such as food and clothing, or even extracurricular activities and educational programs. One of the most significant benefits to providing quality affordable housing is an increase in an individual’s physical and mental health. Hunt Capital Partners’ affordable housing investments create a lasting effect on the people and communities they serve for generations to come.

About Hunt Capital Partners

Hunt Capital Partners (HCP) is the tax credit syndication division of Hunt Companies, Inc. (Hunt). HCP specializes in the sponsorship of Federal and State Low-Income Housing, Historic, and Solar Tax Credit Investments funds. Since its inception in 2010, HCP has raised over $3 billion in tax credit equity in over 48 proprietary and multi-investor funds. HCP manages almost 760 project partnerships representing over 75,000 homes in 48 states and territories. Founded in 1947, Hunt is a privately held company that invests in businesses focused in the real estate and infrastructure markets. The activities of Hunt’s affiliates and investors include investment management, asset management, property management, development, construction, consulting and advisory. For more information on HCP, please visit www.huntcapitalpartners.com, or for Hunt, please visit www.huntcompanies.com.

About Pacific Development Group

Pacific Development Group, Inc. (PDG) is a privately held California firm that was created in 2009 as a rebranding of Professional Apartment Management, Inc. (PAM). PDG and PAM have been family owned and operated since PAM was founded by J.D. Michael in 1969. The company is now under third-generation ownership and has created over 3,800 affordable housing units in Hawai’i and across the Pacific Western United States. For more information, please visit www.pacificdg.com. 

About Hunt Development Group Hawai‘i 

With over 30 years of service in Hawai‘i, Hunt Development Group is recognized for its innovative use of underutilized government properties, its commitment to creating premier master-planned communities, a dedication to sound environmental, social and governance standards, and respect for the cultural and geographical riches of the Hawaiian Islands. Locally, Hunt is responsible for the development, revitalization and asset management of more than 500 entitled acres and four million square-feet of industrial, commercial and yard space. Current projects include the University of Hawai‘i Residences for Innovative Student Entrepreneurs (RISE) in Mānoa; the Daniel Kahikina Akaka Department of Veterans Affairs Community-Based Outpatient Clinic in Kalaeloa; and ‘Āhuimanu, a neighborhood retail center on the North Shore of Kaua‘i.

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MEDIA CONTACT

Kevin Friedman

Maize Marketing

kevin@maizemarketing.com 

Cris Pinedo 

Hunt Capital Partners

cris.pinedo@huntcompanies.com

Carolyn Baker 

Hunt Companies, Inc.

carolyn.baker@huntcompanies.com

 HONOLULU, HI — The Hawaiʻi Housing Finance and Development Corporation (HHFDC) announced today that rental units at the Kūlia I Ka Nuʻu housing complex in Waiʻanae will remain affordable through 2098 under an agreement reached with a private management company. 

The agreement, which began on June 30, calls for Solar Farm View Estates LLC (SFVE) to undertake substantial repairs to the complex and operate it for the next 75 years. The Board of Directors of HHFDC, which retains the property’s fee-simple interest, approved a $4.95 million, low-interest, 10-year loan that allows SFVE to facilitate the repairs. 

The Kūlia property consists of 72 studio and two-bedroom rental housing units spread across six residential structures on a 3.74-acre campus located in Wai‘anae’s Uluwehi subdivision. The complex also includes a laundry/maintenance building, a building that at one time provided shelter housing, a two-story resource center with approximately 12,000 square feet of floor space, and a vacant and developable 1.27-acre parcel. 

Under the terms of the leasehold sale, 71 of the 72 units will be available to households earning up to 60% of the area median income, which is how HHFDC has been operating the property since it took possession in 2013. 

In addition to keeping rents affordable for 75 years, SFVE agreed to undertake a substantial repair program that includes the installation of a photovoltaic energy system; the replacement of all exterior stairwells; and repairs to the roof, electrical, and water heating systems. SFVE will also convert eight studio and two-bedroom units into three-bedroom units in order to better meet demand from Leeward Coast families. 

SFVE is a private affordable housing owner-operator formed by local firms Mark Development Inc. and Skyler Pacific LLC, and California-based Pacific Development Group Inc. 

“We are pleased that we are able to keep the units at Kūlia I Ka Nuʻu affordable as a result of this lease agreement,” said Dean Minakami, HHFDC interim executive director. “The team that we are partnering with on this property is led by veteran companies and individuals with proven track records as housing developers and property managers in the Hawaiʻi market.” 

“Mark Development and our investment partners are grateful to Governor Green and HHFDC for this opportunity to own, rehabilitate and manage this important, westside affordable housing inventory,” said Craig Watase, Mark Development Inc. president. 

The SFVE loan is being provided through the Dwelling Unit Revolving Fund, which was established by the Hawaiʻi State Legislature to fund housing development programs and regional state infrastructure programs. Among these programs is a permanent loan program for housing projects. 

The sale of Kūlia is part of a program initiated by HHFDC in 2013 to dispose of its owned-and-operated affordable rental housing portfolio, in part, to free up existing personnel and financial resources in order to focus on its core business of financing and providing development assistance to new affordable housing projects. 

Approximately 1,400 units in eight projects across the state have been sold in leasehold to private interests as part of the program, with conditions to renovate the properties and keep them affordable for the long term. The Kūlia sale leaves one project remaining in the portfolio — the 32-unit Nani ʻO Puna project in Pāhoa, Hawai‘i which is under agreement to be sold later this year. 

Media Contact: Gordon Pang, gordon.pang@hawaii.gov or 808-341-4069 

March 17, 2023 – Pacific Development Group (PDG) is pleased to announce the acquisition of the historic Cort Tower in downtown Stockton, California. The 85,000 square foot, 10-story building was originally built in 1915 to house the Commercial & Savings Bank. 

This landmark building was designed by architect L.B. Dutton and associate architects Stone & Wright and was constructed by Dietrich and Liestner Construction Company. The Beaux-arts Renaissance Revival design utilized new steel-frame building technologies for skyscrapers developed in Chicago in the late 19^th century. 

Listed on the National Registry of Historic Buildings, it was Stockton’s second skyscraper and the tallest building in the city at its time. The building was heavily damaged by fire in 1923 and following the repairs, was doubled in size along the Sutter Street elevation. The property was purchased in 1929 by A. P. Giannini of the Bank of Italy, later to become Bank of America. It was later owned by the Grupe Company and then the Cort Companies in 1991.

The property still has many original features including marble staircases, ornate wood windows, grand lobbies, and historical facades. The 10th floor features offices with 18-foot ceilings, beautiful wood paneled walls, and a hand carved wood mantel and fireplace. The Basement has the original marble, brass framed teller stations, bank vault doors that stored safety deposit boxes for bank customers.

Pacific Development Group plans to honor this local landmark by thoughtfully preserving the historic integrity of the building while modernizing building systems and amenities. The building’s longtime commercial, office, and school tenants will continue operation in this mixed-use space. PDG hopes to build on the incredible legacy that the Cort Family has established downtown as good stewards of this asset over the last 32+ years.

About Pacific Development Group:

Pacific Development Group, Inc. (PDG) is a privately held Real Estate Investment and Development firm that was created in 2009 as a rebranding of Professional Apartment Management, Inc (PAM).  PDG and PAM have been family owned and operated since PAM was founded by J.D. Michael in 1969.  The company is now under third-generation ownership and has completed several hundred real estate transactions in the Pacific Western United States and Hawaii over its 50+ year history. For more information, please visit www.pacificdg.com

The Pismo Beach City Council voted unanimously on Tuesday to move forward with negotiations with the Housing Authority of San Luis Obispo (HASLO) regarding a proposed affordable mixed-use senior housing project.

The council’s vote directs City Manager Jim Lewis to negotiate a development agreement with HASLO for a property located at 2655 Shell Beach Road near Spyglass Drive. HASLO is asking the City of Pismo Beach to commit housing in-lieu fee funds to help finance the project. Occupancy will be limited to seniors making 60 percent or less than the area median income.

If approved, the project would include a 550-square-foot retail space, 21 affordable 1-bedroom senior apartments, one 2-bedroom manager’s unit, a 1,030-square-foot gathering space for residents, an office, and laundry facilities.

HONOLULU, Hawaii (HawaiiNewsNow) – In these difficult times, people are stepping up to find ways to support the local community.

Mark Development alongside other affordable housing owners are making security deposits available to their tenants for a good reason: They hope the extra money will allow families to buy necessities during the coronavirus pandemic.

On Kauai Lihue Gardens Elderly center, Halawa View Apartments and Kewalo Apartments are among the privately owned low income rental properties where this is being tried.

Craig Watase is the president of Mark Development and realized this vital option was needed, in these times of need. “Our tenants are often friends an family relatives, or classmates,” said Watase. “I was looking into their eyes and seeing that these are hard times — people are out of work.” Mark Development will also defer the normal one month’s rent security deposit for three months on their Kauai County property Koa’e Makana Workforce Housing project. “Mayor Kawakami and Mayor Caldwell have been challenging us,” said Watase. “As a landlord I looked at the people we served which are low income housing tenants and at-least we can give put cash in peoples pockets, its their money were just holding it in trust as a security deposit as a landlord.”

SOUTH LAKE TAHOE, Calif. – After much discussion, the South Lake Tahoe City Council voted to sign Memos of Understanding (MOUs) with the Tahoe Transportation District (TTD) and two developers to build affordable housing in the community.

Pacific Development Group and United Housing Corporation have identified properties, some which have already been purchased, to build housing for those who would be displaced by the proposed US 50 South Shore Community Revitalization Project which would move the highway through the Rocky Point neighborhood off Pioneer Trail.

TTD brought the MOU to the City to memorialize an agreement to work together in a constructive manner. The three-way partnership was not needed as TTD and the developers could have worked together without the City. Councilman Cody Bass sits on the TTD board and got his fellow board members to bring the City in on the MOU, a move both Mayor Brooke Laine and Councilman Devin Middlebrook thanked him for.

“The MOU is our wanting to work together for affordable housing,” said Bass. “This is just the first step. We have a responsibility to be involved. For us to not be involved it is irresponsible. This puts us in the driver’s seat.”

Councilwoman Tami Wallace said she could not be part of an MOU that mentioned the US50 project in its verbiage ad wanted it strickly to deal with housing. She went through several areas of the agreement that she wanted to be removed or changed. The word “shall” was replaced by “may” in many areas as well as the option of a five-day notice to exit the MOU by any party. Bass also asked that the word “binding” be removed.

“It is very clear to me that it does knock down one of the dominos for getting the Loop Road built,” said Wallace.

The domino she spoke of is the self-imposed requirement of TTD to build affordable replacement housing for those who would be displaced when the US50 rerouting project (Loop Road) is built.

PDG starting researching property to purchase for affordable housing in South Lake Tahoe two years ago, long before the new requirement for replacement housing resulting from the US50 project was added.

On Tuesday, PDG announced the completed purchase of the Zehren’s Nursery property at the corner of Highway 50 and Ski Run Boulevard as well as two lots behind in. They previously tried to buy the Heavenly Valley Lodge, which is behind the lots, but that fell through.

Pacific Development Group (PDG)has a history in South Lake Tahoe having recently acquired and rehabilitated Sierra Garden Apartments, and they developed Tahoe Pines, Sierra Vista, and Evergreen I and II. Their specialty if workforce and affordable housing though they do have some other types of properties.

Through their lawyer Lew Feldman, PDG would charge $500 to $800 a month for the deed-restricted units, depending on size. He said PDG and other affordable housing companies need partners and associated subsidies on those types of projects as they aren’t cost-effective to build from scratch.

Wallace said she’d approve the MOUs with the adjustments in verbiage if she got the rest of the Council to back her on getting the US 50 South Shore Community Revitalization Project in front of the voters. She said the voters should be able to have a voice in the project.

Carl Hasty, the TTD district manager, spoke to Council, saying his agency’s goal is 200 units of transit-oriented development and not just required 76 units of replacement housing. He said with the portions of the MOU Wallace wanted to be removed were reflective and explained what all parties were trying to accomplish.

“Housing is the focus,” said Hasty. “The removal [of recitals in the MOU] doesn’t feel as transparent.”

The TTD board will have the MOUs to vote on during their September meeting.

Several members of the public spoke during public comment about the MOUs, and several asked that Middlebrook not be able to vote on anything to do with his employer TRPA or TTD. David Jinkens, Scott Ramirez, Jerry Goodman, and Lou Perini all asked he recuse himself just as Councilman Jason Collin does on Loop Road issues.

“The city takes conflict of interests very seriously,” said City Attorney Heather Stroud. She said they put in requests with the Fair Political Practices Commission (FPPC) for both Collin (who owns property in the development area) and Middlebrook.

The ruling on Collin hasn’t been received yet though he recuses himself on his own for now, and the City received the ruling on Middlebrook August 6. That said, per Government Code 1060, salaries are exempt from reasons for recusal. He could not vote on a contract that was directly with his department.

Another public comment came from Dominic Kichenside who lives on David Lane, adjacent to the proposed housing project. He said he and his neighbors don’t want affordable housing in this location as it would impact views, have a negative effect on their property values, and wanted them to look at lots with a lesser impact on neighborhoods.