Trump coming to Waikiki

He and his partners plan a $350 million luxury condo-hotel

REAL ESTATE celebrity and luxury hotel developer Donald Trump and Irongate Capital Partners, a Beverly Hills, Calif.-based investment firm, plan to bring a $350-million-plus, five-star luxury condominium hotel to Waikiki's Beach Walk project.

TRUMP WAIKIKI Name: Trump International Hotel and Tower at Waikiki Beach Walk Site: Kalia and Saratoga roads, across from Fort DeRussy Park Height: 350 feet Units: 460 Unit sizes: 500 to 3,000 square feet Unit prices: $600,000+ to $7 million Construction start: Early 2007 Target completion: Early 2009

The Trump International Hotel and Tower at Waikiki Beach Walk, to be on the corner of Kalia and Saratoga roads next to Fort DeRussy Park, will become the cornerstone of Outrigger Enterprises' $1 billion redevelopment.

"Trump Tower will be the most luxurious development in one of the most recognized resort destinations in the world today -- Waikiki Beach," Trump said in a statement. "My partners and I look forward to setting a new standard for luxury in Waikiki."

The project is expected to further gentrify Waikiki, and draw celebrities and power players in droves.

"This project is getting a lot of attention. We have already received calls from plenty of celebrities and top executives," said Jason Grosfeld, who co-founded Irongate along with Adam Fisher.

Honolulu Mayor Mufi Hannemann said the addition of the luxury development to the Waikiki Beach Walk is a testament to the attraction of the city as one of the world's most celebrated destinations.

"We are delighted to welcome Mr. Trump and Irongate, whose shared vision will only further strengthen the drawing power of Waikiki," Hannemann said.

Trump has redefined the luxury residential real estate and hotel markets in New York, where he became a global brand. Since then, Trump has expanded into other markets including Las Vegas; Chicago; Miami Beach; Los Angeles; the Caribbean; Westchester, N.Y.; and Bedminster, N.J.

Trump's other interests include office buildings, championship golf clubs, gaming, merchandise and entertainment -- an industry he took by storm with the introduction of his hit reality television show, "The Apprentice."

Trump's Waikiki tower will be featured at 9 p.m. on Monday on "The Apprentice" as one of the job choices for the evening's winner, Fisher said.

Outrigger Enterprises, the master developer of Waikiki Beach Walk, sold the land and development rights for the Trump Tower site to Irongate last year for more than $40 million, Fisher said.

The bullishness of Hawaii's visitor industry and real estate market, as well as the strength of Outrigger's redevelopment, sold Irongate on the project, Grosfeld said.

"The luxury segment of Asian buyers is back in full force, and American luxury buyers are rediscovering Honolulu, and more importantly Waikiki," Grosfeld said.

While Irongate has put its thumb print on other Honolulu projects including the luxury Watermark condominium development, Waikiki Beach Walk is Trump's first venture into Hawaii, Fisher said.

"We haven't partnered with Trump before, but we met him through another partner while we were trying to buy this property," he said. "We wanted to distinguish ourselves from all of the other buyers out there."

Word of Trump's involvement in the project, which was first rumored last year, has been the buzz among Hawaii's high-end real estate community since it was posted on www.trump.com, the official Web site for the Trump Organization. S&P Real Estate, the brokerage and listing firm for Trump's Waikiki tower, also registered an official project Web site, www.trumpwaikikihotel.com, in March.

Trump's Waikiki Tower, which will consist of about 460 suites ranging from 500 square feet to 3,000 square feet, will offer the best of residential and hotel living, Fisher said. The 775,000-square-foot project, which will rise 350 feet, will include 6,500 square feet of retail and dining space and a four-story parking garage, he said.

In addition to Trump's exclusive hotel services, owners and guests would have access to a full spa and fitness center, library, wine cellar, lobby bar, café, outdoor swimming pool and sun terrace with ocean views, Fisher said.

"We are currently negotiating with several top New York chefs to open signature restaurants," he said.

While official price points have not been released, some in the real estate business have said that they have been quoted unit costs ranging from the high $600,000s to about $7 million. Suites in the hotel rental pool are expected to fetch average daily room rates well above $400 a night, Fisher said.

Maintenance fees, which have not yet been set, are likely to be higher than other Waikiki properties because the tower will offer a greater amenity package, Fisher said.

Tower site work and demolition will begin this July, with construction expected to start in early 2007 and completion set for early 2009, according to a company press release. Prospective buyers can begin making reservations for the property this summer, with a first sales release to follow in November, said Gerry LeRose of S&P Destinations, in an e-mail that recently went out to select Hawaii real estate agents.

A preview center will open in Waikiki in July, LeRose said.

Demand for the luxury tower is likely to be really strong, said Debra Blachowiak, owner and principal broker for Sleeping Giant Sotheby's International Realty on Kauai.

"Trump has a huge name and a huge following," Blachowiak said. "I think many of my clients will be interested in this project and that it also will attract plenty of repeat investors who bought real estate from him in other regions."