Why More Apartment Buildings May Not Be The Answer To Oahu’s High Housing Costs… A Canadian asset management company is stepping into a void with more than 1,000 apartments built or planned for Honolulu. But it’s tough to make it pencil out.
When the new Lilia Waikiki apartment building starts taking in residents next month, the opening will mark something unusual for Honolulu: a new high-rise development offering apartments for rent at market rates.
Built by Brookfield Properties, a unit of the Canadian giant Brookfield Asset Management, which also owns Ala Moana Center, the apartment building in the heart of Hawaii’s main tourist district will have amenities common for luxury condominiums sprouting up nearby in Kakaako.
The difference: the 28-story building’s 401 units are for rent.
It’s a rarity, for Waikiki and Oahu in general. The economics of developing multi-family projects make it easier to build and sell condos. But Brookfield is making a big bet on Oahu’s rental market, investing in the heart of the island’s iconic tourist district.
