New project set at Ko Olina

By Andrew Gomes
Advertiser Staff Writer

Ko Olina Resort & Marina will see its first new project since the state authorized $75 million in tax credits to build an aquarium there. Centex Homes says it will start building 60 single-family homes and 260 townhomes early next year. Advertiser library photo

Centex Homes is purchasing 34 acres at the resort, and plans to start construction of 60 single-family homes and 260 townhomes early next year.

A purchase price for the property and the development cost for the project were not disclosed but would be part of $700 million of new construction planned at the resort, according to Bruce Sloan, Hawai'i division president for Centex.

The Centex homes would be the third residential project at Ko Olina since local developer Jeff Stone and investors acquired the largely undeveloped resort five years ago.

The project also is the first announced following approval of the tax-credit financed aquarium, which is expected to break ground early next year.

"We are excited to show the real effect of the aquarium tax credit so quickly," Stone said. "Centex Homes' project alone will result in a significant number of new construction jobs over the next two (to) three years."

Among other anticipated projects, according to Stone, are a hotel and two hotel condominiums worth about $350 million, a combination hotel/condo to be managed by The Ritz-Carlton Hotel Co. and a commercial village with retail shops and restaurants built as part of the $75 million aquarium and swimming lagoon.

Sloan said Centex was encouraged by the state's support to help develop Ko Olina as an additional resort on O'ahu.

"We like the support that the state has given to bring about the aquarium," he said. "We think it's a good opportunity, a good place to be and a good investment."

The Centex project is adjacent to the Coconut Plantation subdivision of Canada-based developer Brookfield Homes, which is building 270 townhomes adjacent to the Centex property.

Brookfield initially announced plans three years ago to build 700 homes at Ko Olina on land including the property being acquired by Centex, but scaled back its plan in 2001.

Since then, Marriott Vacation Club has developed a 103-unit first phase of a 750-unit time-share at the resort. Also, local developers Armstrong Builders and Alexander & Baldwin began building Kai Lani, a 116-home project.

Sloan said the luxury Centex homes will be marketed to second-home buyers. Price ranges for the homes have not been finalized.

"It'll be a wonderful addition to the resort," he said. "Ko Olina's location and setting combine the best elements of a Neighbor Island resort right here on O'ahu."

Centex is a roughly $8 billion publicly traded Fortune 500 company based in Dallas with projects in 26 states.

The company entered the Hawai'i market last year with the purchase of 43 acres at the Waikoloa Beach Resort on the Big Island. Earlier this year, the company reported more than $35 million of beachfront condo sales at that project called Kolea.

Ko Olina was originally envisioned in the mid-1970s by developer Herbert Horita as a $2 billion resort with 8,000 rooms in 10 hotels, a golf course, marina and 3,000 homes.

Horita completed one 490-room hotel, four lagoons, a golf course and 280 townhomes before investors and Hawai'i's economy pulled back in the early 1990s and the project stalled until four years ago when Stone revised the master plan toward lower density development.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.