Firm plans Waikiki rentals

The $26M apartment project would offer one-bedroom units

A Japanese investment group is planning a rare rental apartment project in Waikiki.

SBI Hawaii Property One Inc. plans a 44-unit building on a half-acre lot adjacent to the Royal Gardens hotel in Waikiki. The parcel was formerly part of the hotel's lawn and swimming pool.

Currently dubbed the Ala Wai Garden Plaza, the $26 million project at 447 Namahana St. is expected to offer one-bedroom units at market rates. Two levels of the six stories will be for a parking garage, while the remaining four will be for residential units.

The Waikiki neighborhood board earlier this month voted to support the concept of the project, although they still want updates.

"They could have built it higher," said Waikiki neighborhood board member Jeff Merz, who is in charge of design review. The parcel's zoning would allow a height of up to 300 feet.

"There was some concern about the appearance from the sidewalk, but the developer also proposed quite a bit of landscaping and design on the Ala Wai side."

Initial plans call for a building with a pitched roof, Juliet-style lanais and plenty of landscaping. A small park, BBQ area and pool are also part of the plans.

SBI Hawaii purchased the land for $4.5 million in cash earlier this year from Pacific Century Development and Realty Inc.

Hilo broker Joel LaPinta had listed the property for $5.5 million for more than a year.

Pacific Century had bought the site from Nichiei USA Inc. Nichiei USA had originally proposed a 208-foot condominium to be called the Royal Kahili Tower in 2004, but decided to sell the land instead because of the hot market.

SBI Hawaii has submitted a draft environmental impact report to the planning department for review and acceptance. Further design and planning is still in the works. Completion is scheduled for late 2008.

Taisei Construction is the general contractor for the project, while Durrant-Media 5 is designing the building.