Resort homebuilder Centex Destination Properties said it plans to build a luxury beachfront mid-rise condominium at Ko Olina Resort & Marina with average unit prices at a little more than $2 million.

The 247-unit project fronting Lagoon No. 2 midway between the resort's hotel and time-share complex would be the most expensive home offering at the growing West O'ahu resort, and probably the priciest overall condo project developed on the Island.

"That's a huge price," said Ricky Cassiday, a local housing market analyst who said the project's more than $1,300-per-square-foot typical unit price is probably a record on O'ahu for a new condo project, though several have sold for more at Neighbor Island resorts. The units range from 1,200 square feet to 1,600 square feet.

"It's an ambitious price for — I want to say an ambitious project, but it's not, because it's been realized," Cassiday said.

The development, called Beach Villas at Ko Olina, stands to rack up sales of roughly $500 million, reflecting the strength of Hawai'i's red-hot housing market and the emerging position of the still largely undeveloped resort.

Bruce Sloan, Hawai'i division president for Dallas-based Centex, said the company is selling a home in a resort atmosphere fronting ocean lagoons and nearby golf not far from the cosmopolitan offerings of Honolulu. "You really can't find any place else like that in Honolulu," he said.

Other amenities promoted for the Beach Villas include an exclusive beachfront bar for residents, a fitness center and kitchens designed by world-famous local chef Roy Yamaguchi.

The condo is split between two buildings, a mauka tower rising 15 stories and a makai tower of about eight stories, each with underground parking and a pool.

Sloan said he expects sales for an initial 75 units in the mauka building will begin Oct. 17, with construction to start in December. The first units are scheduled to be completed in the first quarter of 2008.

Centex expects that buyers will mostly be from the Mainland. Because of the property's resort zoning, buyers will be able to rent out their units as vacation rentals, though Sloan said he expects the large majority of buyers will keep their units for personal use.

Beach Villas is Centex's third residential project at Ko Olina, and could be followed by more, Sloan said. "There's a lot of opportunity out there, and we're working with (Ko Olina master developer Jeff Stone) to bring that opportunity to reality," he said.

Centex first acquired land at Ko Olina in late 2003 and last year began selling the first of 324 townhomes and single-family homes for roughly $600,000 to $1.1 million. The company earlier this year began developing another 174 townhomes at the resort for somewhat lower prices.

Centex plans to build Beach Villas on a 7-acre site, half of which was purchased Sept. 1 for an undisclosed price from firms affiliated with Stone and other major Ko Olina landowner HRT Ltd., an affiliate of The Harry & Jeanette Weinberg Foundation. The other half of the property sale is expected to be completed later.

The site was previously envisioned for a Ritz-Carlton hotel and then the planned world-class aquarium financed by up to $75 million in state tax credits. The proposed aquarium was recently relocated to a site nearer the JW Marriott Ihilani Resort & Spa.

Three or four undeveloped hotel sites remain at the resort, which has been growing in recent years primarily with residential development and a 750-unit time-share complex by Marriott.

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

Horita completed one hotel, four lagoons, a golf course and 280 townhomes before development stalled in the early 1990s. Stone acquired the resort with partners in 1999 and revised the master plan toward lower density development.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.