A Chicago-based developer yesterday held a Hawaiian blessing to commence construction of its 35-story luxury condominium on the former site of the Wave Waikiki nightclub, and announced having sold about 60 of 291 units.

Fifield Cos., which announced the project in mid-2006 and began sales a year later, has set a goal in Hawai'i's moderated residential real estate market of selling out the tower called Allure Waikiki upon its scheduled completion in spring 2010.

"We're back into a normal real estate market now," said Carole Manuwa, project sales director with local real estate brokerage firm Prudential Locations LLC. "Buyers are comparing and shopping."

Fifield in July reported selling 48 of an initial 100 units released for sale after opening the on-site sales office.

Since then, the company has put all units in the project on the market, and characterizes the sales pace as steady.

Prices at Allure Waikiki range from $668,050 for an 833-square-foot unit with 1 bedroom and 1 1/2 bathrooms to $2.1 million for a 1,633-square-foot penthouse with 3 bedrooms and 2 bathrooms.

The project at the corner of Kalakaua Avenue and 'Ena Road is one of several high-rise condos under development in Honolulu, where five towers are under construction and at least three more are in planning stages as the market cools from a luxury condo building boom that began four years ago with Hokua in Kaka'ako.

Moving ahead to build Allure Waikiki shows that developers and lenders putting hundreds of millions of dollars at risk are still confident that the market will absorb their product in satisfactory time.

"Today marks a very important milestone," said Alan Schachtman, a Fifield principal speaking at yesterday's ceremony. "It's our first development in Hawai'i, and we couldn't be more happy.

"We're both excited and honored to be part of Waikiki."

Fifield, established in 1977, has developed 50 buildings — including luxury condo towers, upscale rental communities and office high-rises valued at over $4 billion.

Allure Waikiki is one of several ongoing construction projects for the company, which is also building towers in Florida, California, Las Vegas, Chicago and Washington, D.C.

City Councilman Charles Djou said Fifield took a welcome approach to assessing and addressing elements of the project such as traffic impact, sewer capacity and aesthetic design by meeting with community members early in the planning stage.

"Fifield has been doing it right," he said.

The developer as part of its project will widen Kalakaua Avenue to add an extra traffic lane, contribute $5 million toward off-site sewer system improvements and maintain a 16,000-square-foot public park that will feature a waterfall and a memorial to lineal and cultural ancestors of the property and neighboring area.

The memorial will contain four sets of iwi, or bones, under a burial plan approved by the state. Two sets of iwi were discovered on the Allure Waikiki site, and the two others were discovered during past city roadwork nearby.

Planned features of the condo tower include a dog park, fitness center, 24-hour concierge service, pool and recreation deck.

A "signature" restaurant is planned for a separate building on the 2.3-acre site, though it could end up being retail, depending on the interest from restaurateurs.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.