Kakaako

Kakaako has rapidly transformed from Honolulu's light-industrial waterfront district into one of Hawaii's most exciting urban neighborhoods. Located between Downtown Honolulu and Waikiki, this master-planned community centered around Ward Village represents a bold reimagining of urban island living. With LEED-certified luxury high-rises, world-class dining, public art installations, and pedestrian-friendly streetscapes, Kakaako blends cosmopolitan sophistication with authentic Hawaiian culture. The neighborhood appeals to young professionals, urban families, and investors seeking modern amenities, walkability, and proximity to beaches, shopping, and Honolulu's business district. As development continues through the 2030s, Kakaako is establishing itself as Oahu's premier urban residential destination.

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Historical Development & Transformation

Ancient Hawaiian Era: Long before urban development, Kakaako was a thriving coastal community. Ancient Hawaiians built fishponds along the shoreline, cultivated crops in the fertile lowlands, and used the area's coral flats for fishing and gathering. The name "Kakaʻako" means "the dock" or "the place to tie canoes," reflecting its importance as a landing spot and maritime hub. Salt ponds existed in the area, with Hawaiians harvesting paʻakai (salt) - a tradition that continues today at the Paʻakai Cultural Garden.

Missionary & Monarchy Period (1820s-1893): In the 1820s, American missionaries established themselves in nearby areas, but Kakaako remained largely undeveloped. King Kamehameha III granted some parcels to Hawaiian families, but much of the land eventually came under control of the Kamehameha Schools (Bishop Estate). During the Kingdom period, Kakaako served as a buffer zone between Honolulu's commercial center and Waikiki's royal retreats.

Industrial Era (1900s-1970s): The early 20th century saw Kakaako transform into Honolulu's industrial and warehouse district. The neighborhood housed lumber yards, auto repair shops, light manufacturing facilities, and storage warehouses. Working-class families lived in modest homes interspersed among industrial operations. Mother Waldron Park, established in the 1930s, provided one of the few green spaces for local families. By the 1960s and 1970s, Kakaako had become somewhat neglected, with aging infrastructure and limited residential appeal.

Hawaii Community Development Authority (HCDA) Created (1976): Recognizing Kakaako's strategic location and development potential, the Hawaii State Legislature created the Hawaii Community Development Authority in 1976, specifically to guide Kakaako's redevelopment. The HCDA established:

• Master planning authority over 600 acres of urban land
• Design guidelines emphasizing walkability and mixed-use development
• Requirements for affordable housing components
• Standards for public spaces and cultural recognition
• Height restrictions (400 feet maximum for most areas)

Early Redevelopment Phase (1990s-2000s): Initial redevelopment focused on commercial projects and low-rise residential buildings. Victoria Ward Centers (now Ward Village) began transitioning from simple shopping centers to mixed-use destinations. Individual condo towers like One Waterfront Towers (2004) and Nauru Tower (2005) tested the market for urban high-rise living. Progress remained slow as developers, the HCDA, and community members negotiated the neighborhood's future vision.

Ward Village Master Plan Transformation (2009-Present): The 2009 acquisition of Victoria Ward properties by The Howard Hughes Corporation marked Kakaako's true transformation. Their ambitious master plan envisions:

• 22 residential towers (16+ already completed or under construction)
• 4,500+ luxury residences
• 1 million+ square feet of retail and dining
• Extensive public gathering spaces and parks
• LEED certification standards for sustainability
• Integration of Hawaiian culture and public art

Current Kakaako Renaissance: Today's Kakaako represents Honolulu's most dramatic urban renewal success. The neighborhood features:

• Modern luxury high-rises with cutting-edge amenities
• Pedestrian-friendly streetscapes with wide sidewalks
• World-class restaurants representing diverse cuisines
• Vibrant street art scene (Pow! Wow! Hawaii murals)
• Boutique shopping and craft breweries
• Proximity to both Ala Moana Beach Park and Waikiki
• Growing technology and creative industry presence

Ward Village: The Heart of New Kakaako

Ward Village represents Hawaii's largest mixed-use, master-planned community and serves as Kakaako's centerpiece. Developed by The Howard Hughes Corporation on 60 acres formerly occupied by Victoria Ward Centers, Ward Village is transforming urban living in Hawaii.

Master Plan Overview:

• Total Project: 22 residential towers planned (completion through 2030s)
• Completed/Under Construction: 16 towers as of 2025
• Total Residences: 4,500+ luxury condominiums planned
• Commercial Space: Over 1 million square feet of retail, dining, and entertainment
• Investment: Multi-billion dollar development
• Sustainability: All towers designed to LEED standards

Completed Ward Village Towers (Fee Simple Ownership):

1. 1. Waiea (2016) - 36 floors, 174 units, $1.5M-$36M range

      • The flagship tower with ultra-luxury finishes
      • Whole Foods Market at ground level
      • Infinity pool, fitness center, private theater
      • Some of Hawaii's highest per-square-foot sales

   2. Anaha (2017) - 34 floors, 311 units, $800K-$6M range

      • Mid-rise luxury with modern aesthetics
      • Pool deck with cabanas and BBQ areas
      • Dean & DeLuca market at ground level
      • Floor-to-ceiling windows with ocean views

   3. Ae'o (2019) - 42 floors, 466 units, $600K-$3M range

      • Strong appeal to young professionals
      • Whole Foods Market access
      • Multiple pool decks and amenities
      • Pet-friendly with dog park

   4. Ke Kilohana (2020) - 45 floors, 425 units, $1.2M-$8M range

      • Premium finishes and layouts
      • Sky deck with infinity pool
      • 24-hour concierge and valet
      • Koʻolau mountain and ocean views

   5. 'A'ali'i (2018) - 45 floors, 751 units (with 300+ affordable rentals), $450K-$2M range

      • Largest Ward tower by unit count
      • Mixed-use with retail ground floor
      • Affordable housing component
      • Family-friendly layouts available

   6. Kō'ula (2020) - 41 floors, 565 units, $700K-$4M range

      • Mid-range luxury positioning
      • Resort-style pool deck
      • Outdoor theater and gathering spaces
      • Walk to Ala Moana Beach Park

   7. Victoria Place (2021) - 43 floors, 345 units, $900K-$7M range

      • Sophisticated design by Solomon Cordwell Buenz
      • Wine storage and tasting room
      • Wellness center and spa
      • Premium appliances and finishes

   8. The Park Ward Village (2023) - Boutique residences facing park

      • Intimate scale development
      • Direct park access
      • Family-oriented design

   9. 'Ulana Ward Village (2023) - 40 floors, 430 units, $700K-$4M range

      • Integration of Hawaiian cultural themes
      • Multiple outdoor terraces
      • Technology-forward smart home features
      • Dog parks and pet amenities

   10. Gateway Towers (Pre-Ward Village era, now part of Ward Village)

       • Twin 41-floor towers completed 2000-2003
       • Some units converted to fee simple from leasehold
       • More affordable entry point into Ward Village lifestyle
       • Walking distance to all Ward Village amenities

Under Construction/Recent Completions:

1. 1. Ka Malanai (2024 completion) - 41 floors, 544 units

      • Premium finishes throughout
      • Expansive amenity decks
      • Integration with Ward Village retail

   2. Kalae (2024-2025 completion) - 45 floors, 374 units

      • Designed by Studio Gang (award-winning Chicago architects)
      • Unique architectural expression
      • Ocean and mountain view units
      • Ultra-modern amenities

Future Planned Towers (Subject to Market Conditions):

• Additional towers to complete the 22-tower master plan
• Continued expansion of retail and entertainment venues
• Enhancement of public gathering spaces
• Connection to planned rail transit station

Ward Village Retail & Dining:

Major Anchors:

• • Whole Foods Market - Premier grocery with prepared foods, wine bar
  • Nordstrom Rack - Designer brands at outlet prices
  • T.J. Maxx - Department store discount retailer
  • Regal Cinemas - Modern movie theater complex
  • Longs Drugs - Pharmacy and convenience store

Signature Restaurants:

• • Merriman's Honolulu - Farm-to-table Hawaiian Regional Cuisine
  • Cino - Italian Chophouse Experience
  • Highway Inn - Upbeat, casual spot with trandtional Hawaiian fare
  • MW Restaurant - Contemporary Hawaiian by Chef Wade Ueoka
  • Moku Kitchen - Farm-fresh comfort food
  • Tonkatsu Kuro - Casual restaurant featuring assorted cuts of crispy-fried pork via touchscreen order and robot delivery, plus soba, shrimp and tempura.
  • Istanbul Hawaii - Informal restaurant with a terrace featuring traditional Turkish cuisine & cocktails.
  • Maze -  the restaurant specializes in a four-course omakase tasting menu with integrated drink pairings - awarded two stars and named as a Critic’s Pick by a New York Times restaurant critic
  • 53 by the Sea - Chic, glass-walled dining room & terrace with bay views, serving creative meat & seafood dishes.

Cafes & Quick Service:

• • Dean & DeLuca - Gourmet market and cafe
  • Honolulu Coffee - Local coffee roaster
  • Starbucks - Multiple locations
  • Island Vintage Coffee - Acai bowls and coffee
  • Olive & Oliver - Breakfast and brunch spot

Shopping & Services:

• • Sephora - Beauty and cosmetics
  • Ulta Beauty - Makeup and salon services
  • Blue Ginger - Hawaii lifestyle boutique
  • Salt - Curated retail and artisan shops
  • Fighting Eel - Surf and lifestyle store
  • Various fitness studios - Yoga, spin, bootcamp classes
  • Medical/dental offices - Healthcare services on-site

Ward Village Public Spaces & Art:

Parks & Gathering Areas:

• Gateway Park - Central green space with lawn and seating
• Village Walk - Pedestrian promenade connecting towers
• Various plaza spaces - Programming for farmers markets, concerts, festivals

Public Art Installations:

• "Kakaʻako Mural" Program - Rotating large-scale murals on building facades
• Pow! Wow! Hawaii - Annual street art festival bringing world-renowned artists
• Commissioned sculptures - Permanent installations throughout Ward Village
• Cultural recognition - Hawaiian language, history, and traditions integrated into design

Ward Village Amenities Typical Across Towers:

Recreation:

• Multiple swimming pools (often infinity-edge with ocean views)
• Hot tubs and spa areas
• Fitness centers with cardio and weight equipment
• Yoga/spin studios and group fitness spaces
• Dog parks and pet washing stations
• Movie theaters and entertainment rooms
• BBQ cabanas and outdoor kitchens
• Children's play areas
• Game rooms and lounges

Services:

• 24-hour security and concierge
• Valet parking services
• Package receiving rooms
• Electric vehicle charging stations
• Bicycle storage and repair stations
• Guest suites for visitors
• Business centers and conference rooms
• Catering kitchens for private events

Sustainability Features (LEED Certified):

• Energy-efficient building systems
• Water conservation technologies
• Recycled/sustainable building materials
• Electric vehicle infrastructure
• Bike-friendly facilities encouraging alternative transport
• Green roofs and native plant landscaping where applicable

Ward Village Living Considerations:

Investment Profile:

• Fee simple ownership (not leasehold)
• Strong appreciation in most towers since completion
• Active rental market for investors
• Premium pricing reflects location, amenities, and brand
• Some towers allow short-term rentals, others long-term only

Resident Demographics:

• Young professionals (25-45 age range)
• Empty nesters downsizing from larger homes
• International buyers (significant Asian investment)
• Mainland transplants seeking urban lifestyle
• Local families wanting walkability and convenience

Lifestyle Benefits:

• Walk to beaches (Ala Moana Beach Park 5-10 minutes)
• Walk to work (many professional services in/near Kakaako)
• Walk to dining and shopping (everything at doorstep)
• Reduced or eliminated car dependency
• Resort-style amenities without leaving home
• Strong sense of community through Ward Village programming

Considerations for Buyers:

• Higher HOA fees due to extensive amenities ($400-$1,000+ monthly)
• Urban noise levels (especially near Ala Moana Boulevard)
• Parking typically 1-2 stalls depending on unit size
• Some towers have hotel/STR programs, others residential-only
• Construction ongoing through 2030s (temporary noise/activity)
• Premium pricing compared to other Honolulu neighborhoods

Ward Village vs. Waikiki Comparison:

Ward Village Advantages:

• Newer buildings with modern systems and amenities
• LEED-certified sustainable construction
• Fee simple ownership (most Waikiki has leasehold properties)
• More residential/community-focused vs. tourist-heavy Waikiki
• Better walkability to work, beaches, parks, and shopping
• Higher-end dining and retail options

Waikiki Advantages:

• More affordable entry points in older buildings
• Directly on Waikiki Beach (vs. 10-minute walk)
• Easier short-term vacation rental opportunities
• Established rental markets and management programs
• More units available (larger inventory)
• Iconic tourist destination setting

Beyond Ward Village: Other Kakaako Developments

While Ward Village dominates Kakaako's residential landscape, other significant developments contribute to the neighborhood's transformation:

One Waterfront Towers (2004)

• Location: 1001 Queen Street (Mauka side of Ala Moana Boulevard)
• Towers: Two 45-story towers
• Units: 709 total residential units
• Land Tenure: Fee simple
• Features: First modern luxury towers in Kakaako (pre-Ward Village)
• Amenities: Pool, fitness center, BBQ areas, tennis courts
• Price Range: $400K-$1.5M depending on floor, view, and unit size
• Proximity: Walking distance to Ward Village retail, Downtown Honolulu, and Ala Moana
• Resident Profile: Mix of professionals, retirees, and investors
• STR Status: Long-term residential only (no vacation rentals)

Nauru Tower (2005)

• Location: 1330 Ala Moana Boulevard
• Height: 42 floors
• Units: 299 luxury condominiums
• Land Tenure: Fee simple
• Features: Early Kakaako luxury development, full-floor penthouses
• Amenities: Pool, fitness center, 24-hour security, valet parking
• Views: Spectacular ocean, mountain, and city views
• Price Range: $500K-$3M
• Character: More intimate than mega-towers, established community

Symphony Honolulu (2017)

• Location: 1001 Queen Street (adjacent to Honolulu Symphony)
• Distinction: Designed by renowned Arquitectonica
• Units: Mixed-use with residential condos
• Features: Connection to arts and culture scene
• Design: Modern architectural statement

Pacifica Honolulu (Pre-construction/Planning)

• Location: Mauka (mountain) side of Ward Village
• Developer: Sankei Building Co.
• Plans: Additional luxury high-rise
• Timeline: Subject to market conditions and approvals

801 South Street (Historic Preservation/Adaptive Reuse)

• Character: Former warehouse district
• Current Use: Arts and creative industry tenants
• Future: Potential mixed-use redevelopment preserving industrial character
• Cultural Significance: Home to galleries, artists' studios, and light manufacturing

Kakaako Makai (Waterfront Area)

• Park Space: Public parks along the oceanfront
• Recreational Use: Fishing, walking, ocean access
• Development Status: Protected as public space per HCDA guidelines
• Future Plans: Additional park improvements and ocean recreation facilities
• Community Input: Local fishing community maintains strong voice in planning

Kakaako Neighborhood Boundaries & Geography

Official Boundaries:

• Makai (Ocean) Side: Pacific Ocean waterfront
• Mauka (Mountain) Side: Approximately King Street/Beretania Street
• Ewa (West) Side: Punchbowl Street area
• Diamond Head (East) Side: Piikoi Street/Ala Moana Boulevard
• Total Area: Approximately 600 acres under HCDA jurisdiction

Distinct Sub-Areas:

Kakaako Makai (Waterfront):

• Public parks and ocean access
• Fishing piers and recreational areas
• Mother Waldron Park and Playground
• Kewalo Basin Harbor (commercial fishing and tour boats)
• Views of Diamond Head and Pacific sunsets

Kakaako Mauka (Inland):

• Concentrated high-rise residential development (Ward Village core)
• Retail and dining establishments
• Mixed light industrial and emerging creative spaces
• Ward Village master-planned community

Kakaako Industrial (Transition Zone):

• Legacy industrial uses and auto repair shops
• Artist lofts and creative studios
• Craft breweries and local businesses
• Gradual transition to mixed-use development

Proximity to Major Destinations:

• Ala Moana Center: 0.5 miles / 5-10 minute walk
• Ala Moana Beach Park: 0.3-0.5 miles / 5-10 minute walk
• Waikiki Beach: 1.5 miles / 5-10 minutes by car, 20-30 minute walk
• Downtown Honolulu: 1 mile / 5-10 minutes by car, 15-20 minute walk
• Honolulu Airport: 6 miles / 15-20 minutes by car
• University of Hawaii Manoa: 3 miles / 10-15 minutes by car

Kakaako Culture & Community

Art & Creativity:

Pow! Wow! Hawaii:

• Annual street art festival bringing international muralists
• Transforms Kakaako buildings into outdoor art gallery
• Music, culture, and community celebration
• Has put Kakaako on global street art map

POW! WOW! Mural Locations:

• Entire building facades covered with large-scale artwork
• Rotating exhibitions as buildings redevelop
• Instagram-worthy backdrops attracting visitors
• Works by Shepard Fairey, RETNA, Kamea Hadar, and many others

Arts at Marks Garage:

• Community arts center
• Exhibitions, performances, workshops
• Nurturing local artists and cultural expression

SALT at Our Kakaako:

• Boutique retail and artisan shops
• Local makers, designers, and craftspeople
• Farmers markets and community events
• Preserving Kakaako's creative spirit amid development

Industrial Arts & Makers:

• Craft breweries (Aloha Beer Company, Honolulu Beerworks)
• Coffee roasters and artisan food producers
• Custom fabrication and design studios
• Entrepreneurial energy and innovation

Hawaiian Culture Integration:

Paʻakai Cultural Garden:

• Preservation of traditional Hawaiian salt-making
• Educational programs about Native Hawaiian practices
• Community gathering space
• Connection to Kakaako's pre-development history

Cultural Programming at Ward Village:

• Hawaiian language incorporated in building names (Waiea, Anaha, Ae'o, etc.)
• Cultural advisors guiding design and programming
• Hula performances and Hawaiian music in public spaces
• Recognition of area's historical significance

Community Organizations:

Our Kakaako:

• Nonprofit supporting local businesses and community
• Events programming and placemaking initiatives
• Advocacy for balanced development

Kakaako Improvement Association:

• Long-time community organization
• Focus on maintaining neighborhood character
• Input on development proposals

Friends of Keauhou:

• Waterfront park advocacy
• Ocean recreation and environmental stewardship

Transportation & Connectivity

Walkability: Kakaako rates as one of Honolulu's most walkable neighborhoods:

• Wide sidewalks with shade trees and pedestrian amenities
• Walk Score: 90+ (Walker's Paradise)
• Most residents can accomplish daily errands on foot
• Protected crosswalks and pedestrian-friendly intersection design
• Bike lanes on major streets

Public Transportation:

TheBus Routes Serving Kakaako:

• Routes 2, 13, 19, 20, 42, E provide frequent service
• Connections to Downtown, Waikiki, University, and beyond
• Bus stops every few blocks along major corridors
• Monthly passes available for unlimited travel

Honolulu Rail Transit (Future):

• Kalihi station planned near Kakaako
• Completion timeline: Late 2020s to early 2030s (subject to funding)
• Would provide rapid transit to West Oahu and future East Oahu extension
• Ward Village planning includes rail connectivity

Biki Bike Share:

• Multiple Biki stations throughout Kakaako
• 300+ bikes available 24/7
• Affordable short-trip transportation
• Mobile app for finding and unlocking bikes
• Great for beach access and neighborhood exploration

Parking:

• Ward Village towers typically include 1-2 parking stalls per unit
• Additional monthly parking available at nearby garages ($150-$300/month)
• Street parking limited and metered in commercial areas
• Increasing emphasis on alternative transportation reduces parking demand

Freeway Access:

• Quick access to H-1 Freeway via Piikoi or Ward Avenue
• 5-10 minutes to Downtown Honolulu or Waikiki
• 15-20 minutes to Airport
• 20-30 minutes to West Oahu or Windward side (depending on traffic)

Schools & Education

Kakaako's primarily young professional demographic means fewer traditional families, but educational options exist nearby:

Public Schools (Department of Education):

• Honolulu Elementary - Closest elementary school
• Washington Middle School - Nearby middle school option
• McKinley High School - Closest public high school

Private Schools (Nearby):

• Iolani School - Prestigious K-12 college prep (1.5 miles)
• Punahou School - Elite private K-12 (2 miles)
• Mid-Pacific Institute - Private K-12 (3 miles)
• Saint Louis School - Catholic boys school (3 miles)
• Sacred Hearts Academy - Catholic girls school (2 miles)

Higher Education:

• University of Hawaii at Manoa - 3 miles (15 minutes)
• Hawaii Pacific University - Downtown campus 1 mile
• Chaminade University - Diamond Head area (3 miles)

Childcare & Preschools:

• Several childcare centers in and around Ward Village
• Montessori and progressive preschool options nearby
• Growing family amenities as more residents have children

Healthcare & Medical Services

Major Medical Centers (Nearby):

• The Queen's Medical Center - 1 mile (premier hospital)
• Straub Medical Center - 1.5 miles (comprehensive care)
• Kaiser Permanente Moanalua - 4 miles (HMO members)

Urgent Care & Clinics:

• Doctors of Waikiki - Urgent care in adjacent neighborhood
• Straub Clinic Ward - Primary care and specialists
• Various dental offices - In Ward Village and nearby

Pharmacies:

• Longs Drugs - In Ward Village
• CVS Pharmacy - Multiple locations nearby
• Walgreens - Nearby locations

Fitness & Wellness:

• Multiple fitness studios in Ward Village (yoga, pilates, spin, bootcamp)
• 24 Hour Fitness - Full-service gym nearby
• Massage, acupuncture, and alternative medicine practitioners
• Wellness programming through residential tower amenities

Parks, Recreation & Beach Access

Ala Moana Beach Park (5-10 minute walk):

• 100 acres of park and beach space
• Protected swimming areas ideal for families
• Beach volleyball courts, basketball courts, tennis courts
• Large lawn areas for picnics and gatherings
• Magic Island peninsula with sunset views
• SUP (stand-up paddleboard) and kayak rentals
• Calm waters better for swimming than Waikiki's waves
• Evening food trucks and community events

Kakaako Waterfront Park (Gateway Park):

• Public oceanfront park space
• Walking/jogging paths along water
• Fishing spots (popular with local anglers)
• Sunset viewing areas
• Grassy spaces for picnics and relaxation
• Ocean access for experienced swimmers (rocky/coral bottom)

Mother Waldron Park & Playground:

• Historic neighborhood park
• Playground equipment for young children
• Shaded picnic areas
• Basketball courts
• Community gathering space

Kewalo Basin Harbor:

• Commercial fishing fleet homeport
• Sport fishing charters and tour boat departures
• John Dominis restaurant overlooking harbor
• Nico's Pier 38 - fresh fish market and restaurant
• Morning fish auctions (public viewing)
• Working harbor atmosphere

Nearby Recreation:

• Point Panic - Popular surf break (advanced surfers)
• Ala Moana Bowls - Longboard surf spot
• Magic Island - Protected swimming, SUP
• Tennis courts - Multiple public courts at Ala Moana Beach Park
• Diamond Head State Monument - Iconic hike (20 minutes away)

Dining Scene: Beyond Ward Village

While Ward Village provides extensive dining, Kakaako's broader area offers additional options:

Waterfront/Harbor Area:

• Nico's Pier 38 - Fresh fish market and plate lunches
• John Dominis - Upscale seafood with harbor views
• Kewalo Basin food trucks - Casual local-style plate lunches

Breweries & Craft Beer:

• Aloha Beer Company - Local brewery with tasting room
• Honolulu Beerworks - Craft brewery and restaurant
• Waikiki Brewing Company - Taproom location
• Village Bottle Shop - Craft beer and wine shop

Kakaako Mauka/Industrial Area:

• The Pig and the Lady - Contemporary Vietnamese (James Beard recognized)
• Lucky Belly - Ramen and Asian fusion
• Scratch Kitchen & Meatery - Comfort food gastropub
• Livestock Tavern - Farm-to-table American
• Highway Inn - Traditional Hawaiian food

Quick Service & Casual:

• Multiple poke shops and plate lunch spots
• Food trucks near Ward Village and waterfront
• Coffee shops and cafes throughout neighborhood

Real Estate Market Dynamics

Current Market Characteristics (2025):

Price Ranges by Property Type:

• Studios: $400K-$700K (400-600 sq ft)
• 1-Bedroom: $600K-$1.2M (550-850 sq ft)
• 2-Bedroom: $900K-$2.5M (900-1,400 sq ft)
• 3-Bedroom: $1.5M-$5M+ (1,400-2,500 sq ft)
• Penthouses: $5M-$36M (2,500+ sq ft)

Price Per Square Foot:

• Ward Village luxury towers: $1,000-$1,500+ per sq ft
• One Waterfront Towers: $700-$1,000 per sq ft
• Older buildings: $600-$900 per sq ft
• Penthouses and ultra-luxury: $1,500-$2,000+ per sq ft

Investment Considerations:

Appreciation Potential:

• Ward Village towers have shown strong appreciation (10-30% in first 5 years for many)
• Continued neighborhood development likely supports values
• Limited new land creates scarcity premium
• Honolulu's constrained geography supports long-term growth

Rental Market:

• Long-term rentals: $2,500-$6,000+ monthly depending on size
• Short-term rentals: Where allowed, $150-$500+ nightly
• Rental restrictions: Vary by building (some allow STR, others long-term only)
• Occupancy rates: Generally strong due to desirable location
• Tenant pool: Young professionals, corporate relocations, contract workers

HOA Fees:

• Range: $400-$1,000+ monthly depending on unit size and building
• Covers: Common area maintenance, amenities, security, management
• Higher fees reflect resort-level amenities and services
• Factor significantly into investment calculations

Property Taxes:

• Residential rate: Approximately $3.50 per $1,000 assessed value
• Investor/non-owner-occupied rate: Higher rates apply
• Assessment typically based on recent comparable sales
• Annual property tax bills: $3,000-$20,000+ depending on value

Financing Considerations:

• Most properties are fee simple (not leasehold) - easier financing
• Conventional mortgages widely available
• Foreign buyer restrictions may apply for some
• Some lenders have portfolio limits on high-rise condos
• HOA financial health important for loan approval

Building Selection Factors:

For Owner-Occupants:

1. Lifestyle Fit: Amenities that match your interests (pools, fitness, social spaces)
2. Unit Mix: Family-friendly vs. single professional demographic
3. Noise Levels: Height and location relative to street traffic
4. Views: Ocean, mountain, city - dramatically impact price
5. Maintenance Quality: Inspect common areas for upkeep standards

For Investors:

1. Rental Restrictions: STR allowed? Owner-occupancy requirements?
2. HOA Financial Health: Adequate reserves? Pending special assessments?
3. Unit Appeal: Layout and finishes that attract quality tenants
4. Property Management: On-site services or third-party required?
5. Cash Flow Analysis: Purchase price, HOA, taxes vs. rental income

Leasehold vs. Fee Simple in Kakaako

Critical Distinction: Unlike Waikiki's significant leasehold inventory, most modern Kakaako properties are FEE SIMPLE:

Fee Simple Advantages (Standard in Ward Village and Recent Kakaako Development):

• You own both the building/unit AND the land underneath
• No lease rent payments to land owner
• Property appreciates with both structure and land value
• Easier to finance (all lenders provide mortgages)
• More attractive to future buyers for resale
• No lease expiration concerns
• Standard property ownership in most U.S. real estate

Legacy Leasehold (Some Older Kakaako Properties):

• A few pre-2000s buildings may have leasehold components
• Check carefully during due diligence
• Kamehameha Schools (Bishop Estate) holds some Kakaako land
• Less common than Waikiki but still exists in limited inventory

Buyer Action Items:

• ALWAYS verify land tenure during initial property research
• Fee simple strongly preferred for investment security
• Leasehold may offer lower purchase price but with significant trade-offs
• Work with experienced Kakaako real estate professional who understands local land tenure

Short-Term Rental Regulations in Kakaako

Current Legal Framework (Complex and Building-Specific):

HCDA Special District Zoning: Kakaako operates under Hawaii Community Development Authority (HCDA) jurisdiction, not standard Honolulu zoning. This creates unique regulations:

Resort Mixed-Use Zoning:

• Some areas zoned for resort/mixed-use allowing STRs
• Specific buildings must verify zoning allows transient vacation rentals
• Must comply with both HCDA rules AND City & County of Honolulu ordinances

Bill 41 (2022) and 90-Day Minimum:

• Properties NOT in resort zones require 90-day minimum rental terms
• Many Kakaako buildings fall under this restriction
• Exceptions exist for grandfathered operations or specific resort-zoned buildings
• Legal challenge resulted in 30-day minimum for some properties

Building-Specific Restrictions: Many Ward Village towers and other developments have CC&Rs (Covenants, Conditions & Restrictions) that PROHIBIT short-term rentals regardless of zoning:

• Designed as primary residences or long-term rental communities
• HOA documents specifically restrict STRs
• Violators subject to fines and legal action

Where STRs May Be Legal in Kakaako:

1. Buildings with explicit HCDA resort mixed-use zoning
2. Properties grandfathered under pre-2019 regulations
3. Units with valid Non-Conforming Use Certificates (NUCs) - rare in Kakaako
4. Specific buildings where developer obtained STR approvals

Due Diligence Essential:

• Review building CC&Rs and house rules BEFORE purchase
• Verify HCDA zoning designation for specific property
• Check City & County STR registration requirements
• Consult with real estate attorney specializing in Kakaako
• Assume STRs NOT allowed unless proven otherwise
• Violation penalties include substantial fines and legal liability

Tax Implications for Legal STRs:

• Transient Accommodations Tax (TAT): State and county portions
• General Excise Tax (GET): 4.5%
• Property tax at higher Transient Vacation rate
• Operator responsible for all tax collection and remittance
• Platforms like Airbnb cannot collect taxes in Hawaii

Investment Strategy Implications:

• Most Kakaako properties best suited for long-term rentals or owner-occupancy
• STR potential should NOT be assumed in investment calculations
• Long-term rental market remains strong for those unable to do STR
• Some investors specifically prefer buildings that restrict STRs (more residential atmosphere)

Living in Kakaako: Resident Perspectives

Who Thrives in Kakaako:

Young Professionals (25-40):

• Walk to work in Downtown or nearby business districts
• Enjoy nightlife, dining, and social scene
• Value amenities over private outdoor space
• Embrace urban lifestyle and density
• Active, social lifestyle fits community culture

Downsizing Empty Nesters (55+):

• Transitioning from larger suburban homes
• Want walkability and reduced car dependency
• Appreciate resort-style amenities and services
• Enjoy proximity to beach, shopping, dining
• Value security and low-maintenance lifestyle

Transplants from Major Cities:

• Coming from San Francisco, New York, Seattle, Tokyo, Hong Kong
• Understand and appreciate high-rise living
• Seek urban amenities in tropical setting
• Comfortable with condo living and shared spaces

Investors (Local and International):

• Mainland U.S. buyers seeking Hawaii investment property
• Asian buyers from Japan, South Korea, China, Taiwan
• Canadian buyers (significant presence)
• Seeking rental income or occasional-use property

Who May Find Challenges in Kakaako:

Families with Multiple Children:

• Limited outdoor private space (small or no yards)
• Shared amenities can feel crowded
• School options require driving or planning
• Higher cost per square foot than suburban homes

Those Seeking Privacy/Quiet:

• High-density living means close neighbors
• Shared walls, floors, ceilings
• Lobby and elevator interactions
• Construction activity ongoing through 2030s

Car Enthusiasts:

• Limited parking (1-2 stalls typical)
• No space for hobbies, projects, multiple vehicles
• Additional parking expensive if needed

Budget-Conscious Buyers:

• High purchase prices relative to outer Honolulu
• Substantial HOA fees
• Property taxes on higher valuations
• Lifestyle costs (dining out, entertainment) add up

Lifestyle Benefits:

Walkability:

• Accomplish daily errands on foot
• Beach access without driving
• Reduced or eliminated car dependency
• Spontaneous dining and entertainment options
• Healthier, more active lifestyle

Amenities:

• Resort-level pools, fitness centers, entertainment spaces
• Concierge and valet services
• Package handling and security
• Guest suites for visitors
• Dog parks and pet services

Social Community:

• Building events and programming
• Meet neighbors at pools, fitness centers, lounges
• Ward Village hosts community gatherings
• Farmers markets, concerts, festivals
• Active social scene for singles and couples

Cultural Experience:

• World-class dining at doorstep
• Public art and cultural programming
• Beach lifestyle meets urban sophistication
• Hawaiian culture integration and recognition
• Diverse, cosmopolitan community

Lifestyle Challenges:

Construction Activity:

• Multiple towers under construction through 2030s
• Periodic noise, traffic, dust
• Street closures and detours
• Crane views may obstruct until completion

Urban Noise:

• Ala Moana Boulevard traffic (major thoroughfare)
• Nearby freeway on-ramps
• Construction equipment
• Nightlife and dining activity (later hours)
• Sirens from emergency vehicles

Density:

• Crowded amenities during peak hours (evenings, weekends)
• Elevator wait times in large buildings
• Limited street parking for guests
• Popular restaurants require reservations or waits

Tourist Activity:

• Proximity to Waikiki brings tourist foot traffic
• Ward Village retail attracts visitors
• Beach areas busy on weekends and holidays
• Biki bikes and rental cars in neighborhood

Kakaako Neighborhood Governance

Unlike Waikiki's neighborhood board system, Kakaako operates under the Hawaii Community Development Authority (HCDA), a state agency with unique planning and development authority.

HCDA Structure:

• Authority: State-level agency reporting to Governor
• Jurisdiction: 600-acre Kakaako district
• Powers: Zoning, development approval, design review, infrastructure
• Mission: Guide Kakaako's transformation while preserving community character

HCDA Board Meetings:

• Regular public meetings (typically monthly)
• Open to community testimony
• Review development proposals
• Discuss policy and planning matters
• Transparency and public involvement encouraged

Community Input Opportunities:

• Public hearings on major developments
• Design review sessions for new projects
• Long-range planning updates
• Infrastructure and public space discussions

HCDA Reserved Housing Program:

• Requires affordable housing component in new developments
• Targets workforce and local families
• Rent and price restrictions for qualifying buyers
• Mixed-income community goals

How New Residents Can Get Involved:

• Attend HCDA board meetings (usually at their office)
• Provide testimony on proposed developments
• Join Our Kakaako or other community organizations
• Participate in public art and cultural events
• Connect with building HOA boards
• Support local businesses and makers

Key Ongoing Issues:

• Balance of luxury development vs. affordability
• Preservation of Kakaako's creative/artistic character
• Traffic and parking management
• Public space and waterfront access
• Hawaiian cultural recognition and integration
• Sustainability and environmental concerns

Comparing Kakaako to Other Honolulu Neighborhoods

Kakaako vs. Waikiki:

Kakaako Advantages:

• Newer, modern buildings and infrastructure
• Fee simple ownership (vs. Waikiki's leasehold prevalence)
• More residential community (vs. Waikiki's tourist focus)
• Better walkability to work, shopping, services
• LEED-certified sustainable construction
• Lower density than Waikiki's most crowded areas
• Growing dining and cultural scene

Waikiki Advantages:

• Directly on famous Waikiki Beach
• More affordable older building options
• Established vacation rental markets
• Iconic location and global recognition
• Greater unit inventory and variety
• Resort infrastructure and services
• Easier STR opportunities (where legal)

Kakaako vs. Ala Moana:

Kakaako Advantages:

• More modern, newly constructed buildings
• Stronger sense of community and identity
• Public art and cultural programming
• Pedestrian-friendly street design
• Comprehensive master planning
• Trendy dining and nightlife scene

Ala Moana Advantages:

• Direct access to Ala Moana Center (largest mall)
• Slightly more established neighborhood
• Mix of luxury and mid-range options
• Quieter than central Kakaako
• Strong Asian expatriate community

Kakaako vs. Downtown Honolulu:

Kakaako Advantages:

• Better beach access (10 minutes vs. 20+ minutes)
• More residential atmosphere
• Superior dining and retail options
• Newer buildings and amenities
• More outdoor spaces and parks
• Vibrant arts and culture scene

Downtown Advantages:

• Walk to major employers and businesses
• Historic architecture and character
• Chinatown dining and markets
• Lower price points in older buildings
• More intimate neighborhood scale
• First Friday art walks

Kakaako vs. Hawaii Kai/Windward Side:

Kakaako Advantages:

• Urban walkability and convenience
• Shorter commute to Downtown
• Restaurant and entertainment variety
• Modern amenities and services
• Access to world-class shopping

Hawaii Kai/Windward Advantages:

• Suburban lifestyle with yards and space
• Better for families with children
• Ocean sports and outdoor recreation emphasis
• Less density and congestion
• Larger homes for the money
• Neighborhood schools and parks

Investment Case Study: Typical Ward Village Condo

Example Property Profile:

• Building: Ae'o Tower
• Unit Type: 2-bedroom, 2-bathroom
• Size: 923 square feet
• Floor: 25th floor
• View: Partial ocean view, mountain views
• Purchase Price (2019 pre-construction): $1,100,000
• Current Value (2025 estimate): $1,350,000-$1,400,000
• Appreciation: ~25% over 6 years

Ownership Costs (Monthly):

• HOA Fee: $750
• Property Tax: ~$400 (based on $1.3M value)
• Insurance: $100-150
• Total Monthly Costs: ~$1,250-$1,300

Long-Term Rental Scenario:

• Monthly Rent: $3,800-$4,200
• Annual Rent: $45,600-$50,400
• Less Costs: $15,000-$15,600
• Net Annual Income: $30,000-$34,800
• Cash-on-Cash Return: 2.2-2.5% (before mortgage)
• Gross Yield: 3.5-3.8%

Considerations:

• Appreciation provides bulk of returns (25% in 6 years)
• Rental income covers costs plus modest cash flow
• Fee simple ownership increases long-term value security
• LEED certification and modern systems reduce obsolescence
• Ward Village brand maintains desirability

Future Development & Long-Term Outlook

Remaining Ward Village Buildout (through 2030s):

• 6-8 additional residential towers planned
• Continued retail and dining expansion
• Public park and gathering space enhancements
• Possible hotel or office components
• Total project completion: mid-2030s

Honolulu Rail Transit Impact:

• Kakaako/Ala Moana station planned
• Would dramatically improve accessibility
• May further drive demand and values
• Completion timeline: late 2020s to early 2030s (uncertain)
• Could reduce parking needs and car dependency

HCDA Long-Range Planning:

• Emphasis on mixed-income housing
• Preservation of light industrial uses for local businesses
• Waterfront access improvements
• Sustainability and resilience planning
• Cultural programming expansion

Market Outlook:

Bullish Factors:

• Limited developable land on Oahu
• Continuing demand from mainland and international buyers
• Modern construction with long useful life
• Strong fundamentals: walkability, beaches, lifestyle
• Fee simple ownership preferred by most buyers
• Honolulu's role as Pacific business hub

Potential Headwinds:

• Construction activity continues (noise, disruption)
• Rising interest rates affect affordability
• International buyer restrictions possible
• Climate change and sea level rise concerns
• Affordability crisis may limit local buyer pool
• Tax policy changes for investment properties

10-Year Projection: Most analysts expect Kakaako to:

• Complete majority of planned development
• See continued appreciation (3-5% annually average)
• Mature into established urban neighborhood
• Benefit from rail transit if completed
• Maintain strong rental demand
• Solidify position as premier urban Honolulu location

Professional Guidance Strongly Recommended

Kakaako's complexity requires working with experienced professionals:

Real Estate Agent Specialization:

• Choose agents with deep Kakaako/Ward Village expertise
• Understanding of HCDA regulations and processes
• Knowledge of building-specific nuances
• Access to pre-construction opportunities
• Track record with investor clients

Legal Counsel:

• Review CC&Rs and building documents
• Understand HCDA vs. City & County jurisdiction
• STR legality verification
• Contract review and negotiation
• Entity structuring for investors

Tax Advisors:

• Hawaii tax implications for residents vs. non-residents
• Depreciation strategies for investors
• Passive activity rules for rentals
• 1031 exchanges and tax-deferred strategies
• Foreign investment tax treaty considerations

Property Management:

• Long-term tenant screening and placement
• Lease administration and rent collection
• Maintenance coordination
• Financial reporting for owners
• Understanding of building-specific rules

Financial Advisors:

• Leverage and financing strategies
• Portfolio diversification implications
• Hawaii real estate in broader wealth plan
• Estate planning for Hawaii property
• Risk management and insurance

Final Thoughts: Is Kakaako Right For You?

Kakaako is Ideal If You:

• Embrace urban high-rise living
• Value walkability and convenience
• Want modern amenities and services
• Appreciate contemporary design and architecture
• Enjoy diverse dining and cultural experiences
• Seek strong sense of community
• Want proximity to beaches without being in tourist epicenter
• Comfortable with high density and shared spaces
• See Hawaii as long-term investment
• Are willing to pay premium for location and quality

Consider Alternatives If You:

• Prefer traditional single-family homes with yards
• Need significant private outdoor space
• Want quiet, suburban atmosphere
• Have large families needing more space
• Require multiple vehicles and parking
• Dislike construction activity and urban noise
• Seek more affordable entry points
• Want immediate STR income potential
• Prefer established neighborhoods over new development
• Dislike HOA rules and community governance

The Bottom Line: Kakaako represents Honolulu's boldest urban transformation and Hawaii's most significant master-planned community. For those seeking modern, walkable, amenity-rich urban living in a tropical setting, few locations globally compare. The neighborhood's trajectory - from industrial district to cosmopolitan urban village - demonstrates vision, investment, and commitment to creating a distinctive sense of place.

However, Kakaako's premium pricing, ongoing development, and high-density living aren't for everyone. Prospective buyers and investors must carefully evaluate whether the lifestyle, costs, and trade-offs align with their goals and preferences.

With experienced professional guidance, thorough due diligence, and realistic expectations, Kakaako offers compelling opportunities for the right buyers - whether primary residents, second-home owners, or investors seeking Hawaii's evolving urban landscape.

Demographics and Employment Data for Kakaako, HI

[Demographics section would include similar population, household, and employment data charts as shown in the Waikiki example - this data would need to be sourced from U.S. Census Bureau specific to Kakaako's boundaries]

Schools in Kakaako, HI

[School section would list nearby schools with ratings and details, similar to Waikiki format - specific school data would be populated here]

Contact Team Hawaii Real Estate

For expert guidance on Kakaako real estate opportunities, contact Shannon Smith and the Team Hawaii professionals. With over two decades of experience in Honolulu's evolving urban neighborhoods, including extensive work with Ward Village developments and investment properties, we provide the local expertise and market insight essential for success in Kakaako's dynamic real estate market.

Shannon Smith Hawaii Modern Realty (formerly Berkshire Hathaway HomeServices Hawaii Realty) Phone: (808) 225-3736 Email: [[email protected]](mailto:[email protected])

Whether you're searching for your urban Hawaii home, exploring investment opportunities, or selling a Kakaako property, we're here to help you navigate this exciting neighborhood with confidence and expertise.