Governor Josh Green, M.D.

A joint public-private collaboration between the state and the Kobayashi Group has won the National Association of Industrial Office Properties (NAIOP) 2023 Kukulu Hale Award for Public/Government Projects. The project utilized underused state grounds to develop an innovative mixed-use space, including an affordable rental tower, Juvenile Services Center, and a six-story parking garage. This project comprised of Hale Kalele and Hale Hilina‘i, sought to address a pressing need for affordable housing and critical services to vulnerable youth, all in one building.

“The all-affordable rental tower Hale Kalele is groundbreaking because it marks the first inter-agency partnership between HHFDC, the Judiciary, and a private developer,” HHFDC Interim Executive Director Dean Minakami said. “We hope it provides a blueprint for other partnerships to form in the years to come.”

The new building is 30,000 square feet, with the first two levels dedicated to the Hale Hilina‘i juvenile services center and shelter of the Hawaiʻi State Judiciary. The rest of the building contains Hale Kalele’s 200 affordable rental units. Residents cannot earn more than 60 percent of the area median income in order to qualify to rent a unit.

Hale Kalele/Hale Hilina‘i was made possible through the partnership between the State Judiciary, Kobayashi Group, and the HHFDC. The focus of the project was sustainability and affordability. To make the project possible, HHFDC provided LIHTC, tax-exempt revenue bonds, and a low-interest loan. Furthermore, thanks to the Kobayashi Group, they were able to expedite the project’s implementation so that construction began less than ten months after the HHFDC financial award.

“The Judiciary is a proud partner in this historic and innovative endeavor. Thanks to the vision and commitment of House Speaker Scott Saiki, HHFDC, the Kobayashi Group, Design Partners, and our First Circuit leadership team, Hale Kalele/Hale Hilinaʻi is now a place of hope and promise for our community,” said Chief Justice Mark Recktenwald.

NAIOP Hawaiʻi is the local chapter of the nation’s leading organization for developers, owners, and investors of office, industrial, retail, and mixed-use real estate. Its annual Kukulu Hale Awards program celebrates the best of Hawai‘i’s commercial real estate industry. It honors individuals and organizations that have enhanced our community through their projects, personal achievements, and civil service. To see the list of all the 2023awardees, visit: https://www.naiophawaii.org/kukulu-hale-awards/