If you’ve driven past the Diamond Head end of Ala Moana Center lately, you already know that navigating the parking around Macy’s can be a mission. Now, imagine dropping two brand-new high-rises right onto that corner. Yep, you heard that right.
The landscape of Honolulu is shifting again, and this time the spotlight is on the southeast corner of Hawaiʻi's biggest shopping mall. A proposal called the 1588 Ala Moana project would turn a corner of Ala Moana Center near Macy's into two mixed-use towers. The permits are currently in and under review, revealing fresh new details about what to expect. If you’ve been keeping an eye on the Oʻahu real estate market, this is one development you’ll want to pay attention to.
Who’s Behind the Build?
If the names Kobayashi Group and BlackSand Capital ring a bell, it's because they’re no strangers to upscale real estate on Oʻahu. Kobayashi Group and BlackSand Capital are partnering for the development of the towers. Alongside MacNaughton, Kobayashi and BlackSand developed the Park Lane Ala Moana condominium project at the other end of the Ala Moana Center property about 10 years ago. Now, with R.M. Towill serving as a project consultant, they’re aiming to reshape the other side of the mall.
The Two Towers: Luxury Guests and Local Residents
This isn’t just another set of condo blocks; it’s a dual-purpose vision. The plans also call for a podium that would house commercial spaces along with the lobbies for both towers.
Here is the breakdown of the two proposed buildings:
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Tower One (The Hotel): One tower will be dedicated to a hotel development that would rise as high as 38 stories. This is the same height as the Ala Moana Hotel behind the mall. It would include 291 guest rooms. The luxury hotel would cater to high-spending guests. This is a strategy that Hawaiʻi's tourism industry is heavily targeting.
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Tower Two (The Residences): The other tower would rise to 17 stories. It would include 145 market rate residential units. It would also feature another 69 affordable units.
The affordable housing aspect is always a major talking point for kamaʻāina. Last year, the project was only proposing 52 residential units for people making below 80% of the annual area median income. For context, that would be an income below $121,600 for a family of four. However, the newly revealed permits show the developers are now planning for 69 residential units. In a housing market as tight as ours, bumping up that number is a welcome adjustment.
Traffic, Parking, and the Bigger Picture
We can't talk about a new project in Honolulu without asking about parking and traffic. Public records indicate the project is planned for the southeast corner of Ala Moana Center, around where the parking lot in front of Macy's is located. The project is set to add 560 parking stalls for the mall and another 575 for the hotel. However, it is not clear if the project is expected to take away parking stalls from the mall yet.
Let's zoom out for a second. The Ala Moana area has been going through massive change over the years with only more expected to come. Over the years, thanks to a transit-oriented development designation, we've seen a row of high-rise towers going up across Kapiʻolani Boulevard. In addition, a proposed Skyline rail station is set to go up near the mall as well.
Plus, the local retail scene is shifting. More recently, Ala Moana's Neiman Marcus store announced it will be closing next month. As more anchor stores close, mall owners are increasingly looking at ways to fill such large spaces. In some markets, malls are under increasing consideration for mixed-use redevelopments similar to the 1588 Ala Moana project.
What's Next?
If you want to stay in the loop, the timeline is moving fast. The permits, which were filed in March, are marked as still under review. Honolulu's Department of Planning and Permitting is scheduled to hold a public hearing regarding the permits. This hearing will take place on May 8 at 10 a.m. at the Fasi Municipal Building.
As Honolulu grows, balancing high-end tourism with the real needs of locals will always be a tightrope walk. We’ll be keeping a close eye on this one as it moves through the permitting process. Stay tuned, stay informed, and drive with aloha out there!
