Trump Plans to Build in Waikiki - Looking for a Reason to go to Hawaii?
One of the biggest names in real estate and reality television, Donald J. Trump, plans to put his mark on Waikiki as a development partner for a luxury condominium tower of Outrigger Enterprises. The billionaire businessman plans to erect a signature building that could define a new level of luxury for high-rise living in Hawai'i where home prices have soared to staggering levels over the past year.
Honolulu, HI (PRWEB) May 19, 2005 -- The ever-innovative New York developer
has arranged to buy land at the makai end of Saratoga Road from Outrigger and to
build the proposed 350-foot tower with Beverly Hills, Calif.-based investment
and development firm Irongate Capital Partners, according to people familiar
with the deal.
The tower is expected to cost around $200 million, have
300 to 400 residential units and be branded with the Trump Tower name or
something similar reflecting the cachet of the real estate mogul and star of
NBC's hit show "The Apprentice."
Outrigger has yet to finalize a
contract for the project, so the tentative deal could fall apart. If final terms
can be reached, completion of the transaction is expected in July.
Mel
Kaneshige, Outrigger senior vice president, declined to say if Trump is involved
in the high-rise project.
Outrigger, which conceived the tower as part
of its $460 million Waikiki Beach Walk redevelopment of several old hotels
mainly along Lewers Street, said earlier this week that it was negotiating with
a shortlist of developers and expected to make a decision in about 30 days.
Kaneshige would not say if a tentative selection had been made. "We
narrowed the field," he said, adding that the company's policy is not to
announce deals until they are firm.
Trump was not available for comment
yesterday, but his assistant, Norma Foerderer, said she was not aware of such a
deal with Outrigger.
A representative of Irongate could not be reached
yesterday.
Two people familiar with Outrigger's effort to find a
developer for its high-rise confirmed Trump's role, but asked not to be
identified to preserve good business relationships with involved parties.
If Trump and Irongate complete their deal with Outrigger, it could bring
a new level of luxury to high-rise living in Hawai'i.
Trump is known for
pushing the limit on opulence, setting a record last year for New York condo
sale prices at about $3,000 a square foot with a $13 million penthouse deal at
Trump Park Avenue.
"I think he will bring some flare and excitement to
the market," said Mary Worrall, owner of the local upscale residential
real-estate brokerage firm Mary Worrall Associates. "He has such a following. I
think it's very exciting."
A Trump tower would be the first big
real-estate project in Hawai'i for the New York deal maker who persuaded the
state to host the 1998 Miss Universe Pageant. The state and businesses
contributed more than $5.3 million in money and services to Trump and the
pageant organizers in return for repeated mentions and photographs of Hawai'i in
the telecast.
Trump has developed a handful of luxury residential
projects from the 90-story Trump World Tower, billed as the tallest residential
tower in the world, to the $5 billion commercial-residential Trump Place under
development with an initial planned phase of 5,700 residential units.
In
January, Trump announced plans for a $220 million "ultra-luxury" condo in Tampa,
Fla.
"We are developing a signature landmark property so spectacular
that it will redefine both Tampa's skyline and the market's expectations of
luxurious condominium living," he said in a statement.
Unit prices at
Trump Tower Tampa with hotel-like services, spa and fine art range from $700,000
to more than $5.5 million.
Hawai'i's housing boom over the past couple
of years has demonstrated strong demand for such residences as Hokua, the nearly
sold-out high-rise overlooking Ala Moana Beach Park where prices initially
ranged from $550,000 to $5.5 million.
Outrigger cited the run-up in home
prices and sales volume in helping to convince the company to develop its new
tower as a residential condo instead of the originally envisioned hotel.
Worrall said Hokua, which is still under construction, reset the bar for
luxury high-rise condos in the market, and that a Trump tower could build on
that.
"He's got his name on so many buildings in New York, and they all
seem to be so successful," she said.
Trump in recent years has
increasingly expanded outside New York.
Trump partner Irongate entered
the Hawai'i market a year ago with a purchase of three acres in Waikiki's Hobron
Lane area from Outrigger. Irongate sought approvals to build an upscale condo
high-rise expected to break ground in June.
Outrigger has said
construction of the envisioned Beach Walk tower — which will replace the Ohana
Royal Islander hotel, Ohana Reef Lanai hotel and Hale Pua Nui apartments — could
start in the first half of next year.
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Source : http://www.prweb.com/releases/2005/5/prweb241850.htm