Kamehameha Schools is a privately-funded educational trust for those of Hawaiian ancestry. The school is funded by the estate of Princess Bernice Pauahi Bishop, the great-granddaughter of King Kamehameha I. The perpetual endowment also supports preschool locations as well as post-secondary scholarships for Hawaiian natives throughout the United States.
The project vision was to build and establish a Life Sciences Research Complex to enrich the Kaka’ako district. Located along the makai side of Ala Moana Boulevard between Cooke and Coral Streets in Honolulu, it is intended to advance the University of Hawaii’s vision of a ‘live, work, learn and play’ community.
The first phase would be approximately 150,000 square feet, with the total project goal of 400,000 square feet. Once complete, the complex is anticipated to support more than 1,000 new jobs.
On behalf of The Royal Bishop Estates of Hawaii and the Kamehameha Schools, IPG redeveloped a site on the Kaka’ako waterfront, just west of downtown Honolulu. In partnership with KUD International and Phase 3, the predevelopment was a phased 500,000 SF research campus.
The scope of work that the IPG development team provided was a dynamic process in an uncertain market. The team worked closely with Hawaii Biotech and the Kamehameha Schools team to achieve the successful completion of the design phase of the project.
The scope of work included:
Analysis of optimal ownership structure for the project, including options for ground lease, fee simple, condominium, and various other structures
Development of satellite CC&Rs for the research complex as it relates to APIC
Development of all marketing materials and marketing schedule in conjunction with the project
Negotiated and entered into marketing, agent listing, and consulting agreements
Established both a local and national development/marketing/financing plan based upon stated requirements
Evaluated potential tenants for suitability from the perspective of the established profile
Negotiate leases and other space arrangements with companies that met the profile
Negotiate financing alternatives and conditions with local and investment banks, funds, and other financial institutions.
Explored subsidy opportunities (NH, NMTCs, State Incentives, and so on)
Completed all budget-related activities, including value engineering, to achieve the most efficient, cost-effective facility for the client.
Completed revisions to building elevations to achieve the contextual appearance of the facility prior to KS board approval.
Filing of the PUD with the city of Honolulu.
Finalized marketing materials on speculative space.
Fit up of proposed tenancy.
Prepared pro-forma for financing the improvements, including an operating budget for the facility and an overall warehouse conversion pro-forma.
The Challenges
1
Deliver a feasible development program for the emerging Hawaiian life science market.
2
Mitigating risk; non-credit anchor tenants and high construction cost.
3
Maintain cultural significance throughout a complex S&T design requirement.
The Success
1
A Complete Development Program & Detailed Real Estate Review and Feasibility Study
2
Passing of State Legislation Support for Credit Enhancement
3
Anchor Tenant Curation (Cardax Pharmaceuticals, University of Hawaii, and Hawaii Biotech)
At project completion, the client was in receipt of:
A Complete Development Program
Detailed Real Estate Review and Feasibility Study
Passing of State Legislation Support for Credit Enhancement
Anchor Tenant Curation (Cardax Pharmaceuticals, University of Hawaii, and Hawaii Biotech)
Additionally, IPG delivered a real estate review that allowed the client to make the best decision possible for their development program goals.
