Ledcor�s Hawaii Division Heads Resuscitated Hawaiian Condominium Project

After the skeleton of a planned 48-story luxury condominium languished for more than a year on prime Oahu land, San Diego-based developer OliverMcMillan resuscitated the $284-million mixed-use project to include retail, entertainment and 492 market rate and moderate income residential units.

In April, the Honolulu office of Ledcor Construction Hawaii, working with Architects Hawaii Ltd. and Baldridge & Associates Structural Engineers, took up where developer Honolulu-based KC Rainbow Development Co., llc, left off in fall 2008 when it declared bankruptcy on what was then the Moana Vista. Before losing their construction loan, the contractor had poured the 27th floor of the reinforced concrete tower with post-tensioned concrete suspended slabs and started on the exterior glass and interior finishes.

Restarting the project required replacing concrete formwork for walls and slabs that sat in the weather for over a year. Post tension cables were repaired or replaced. Exposed reinforcing steel was cleaned.

After purchasing a $29.5 million lien from general contractor Hawaiian Dredging Construction, the new developer held a competitive process to engage a new general contractor; negotiated with original mechanical, plumbing, electrical, window and elevator subcontractors to continue work on the project; and recertified the tower crane.

OliverMcMillan also renamed the project Pacifica Honolulu and adjusted the design. The mix of units was expanded from all two-bedroom to a choice of one-, two-, or three-bedrooms from the 15th floor up. Unit modifications were limited by the need to keep plumbing and HVAC vertical pipe chases aligned with lower floors, says OliverMcMillan spokeswoman Joyce Timpson.

The original 5th floor recreation deck was expanded to include a resort-style recreation deck with a pool, Jacuzzi and cabanas, an urban park with a party pavilion, fire pit and six-barbecue hale or covering. It also includes two state-of-the-art private theaters, a large fitness center with locker rooms and sauna.

Changes to interior finishes were limited by material commitments made or materials already purchased and delivered to the project. New interior finishes were selected for units that did not have them installed yet. Counter tops and fixtures that were not installed and will not be used were donated to charities.

Financing was a challenge, Timpson says. Extensive insurance and new warranties were required. First Hawaiian Bank weighed the strength of OliverMcMillan and its equity partner, along with demand for pre-sale requirements before granting the loan.

Timing was important, according to Timpson. The Hawaii market is already beginning to rebound from the lows of late 2008 and early 2009. �Subcontractor pricing is still competitive, but without the discounts seen a year ago,� Timpson says. The project is now scheduled for completion in third quarter of 2011.

Timpson says the developer is currently looking for other similar opportunities.