HONOLULU (HawaiiNewsNow) - Another highrise is being planned for Hawaii's top tourist destination: Waikiki. But this one isn't a hotel.
Developer OliverMcMillan announced plans Tuesday to redevelop a 2.5 acre space at the corner of Kuhio and Kanekapolei Street into a mixed-use residential and commercial building.
The project will bring 500 new rental units to the heart of Waikiki.
About 20 percent of the units will be reserved for affordable housing, intended for residents making 80 percent of the area's median income.
About 80 percent of median income in Honolulu is $83,700 for a family of four, and $67,000 for a couple.
"The remaining 400 market rate rental units are an exciting new offering that provides more people who work in Waikiki a place to
live in Waikiki," OliverMcMillan's Director of Development Kris Hui said.
A 260-foot tall tower will be built on top of a two story, 38,000 square foot retail space. Some 450 units will be located in the tower, while an additional 50 units will be redeveloped in an existing apartment complex on the Diamond Head side of Kanekapolei street.
Studios, one, two and three-bedroom units are planned for the building, each ranging anywhere from 350 to 1,100 square feet.
Oliver McMillan enters a 65-year ground lease with landowner Queen Emma Land Company for the project.
The project is slated to begin construction in 2019 after environmental assessments and proper permitting. Developers hope to have the project finished by 2021.
Developers also say they will preserve a historic banyan tree on the property.
There is no word on how much units will cost.