176-unit condo planned by 2010

Half of the fee-simple condominiums will be designated affordable

Developer THM Partners is proposing to build a new 176-unit residential condominium near the intersection of Kalakaua Avenue and Beretania Street.

Half of the Holomua project at 1315 Kalakaua Ave., next to the 7-Eleven store, would be designated affordable, enforced via a buyback clause in sales of the fee-simple units. Plans call for 23 floors including a 245-space parking garage on seven levels.

At 220 feet, the project would exceed the 150-foot city height limitations on the parcel, according to plans presented to the Makiki/Lower Punchbowl/ Tantalus Neighborhood Board.

"It seems unfortunate that we have one building breaking the height limit without consideration of the larger area," said John Steelquist, neighborhood board chairman. "I was surprised that nobody objected (to the height limit) ... because in the past the board has been adamant about not busting the limit."

On the other hand, the importance of affordable housing resonates with the board, he said.

The board has taken no position on the project.

"Our purpose is to keep prices low and the maintenance fees low," said Samuel Chung, a partner with THM Partners. "We're really gearing towards working people in Hawaii, not like these other projects that are gearing towards more affluent and mainland buyers."

The project would create 90 two-bedroom units measuring 700 to 750 square feet and priced in the upper $300,000s, and 86 one-bedroom units totaling 500 to 525 square feet, with asking prices in the mid $200,000s, Chung said.

By keeping some of the units affordable, the developer would receive certain exemptions for density and setbacks on the 21,000-square-foot property, which has a mixed-use zoning.

Environmental studies are expected by mid-summer, with completion of the project by 2010.