Kalihi’s Former Dee Lite Bakery Site Tapped for Affordable Housing Near Future Skyline Station
The City and County of Honolulu has selected EAH Housing as the developer for a major affordable housing project on the site of the former Dee Lite Bakery in Kalihi, positioning the development as a cornerstone of transit-oriented growth near the upcoming Mokauea Skyline station.
The nonprofit housing developer will transform the 2.3-acre property at 1708 Colburn Street into a mixed-income residential complex, capitalizing on its prime location directly across from where the rail line will deliver passengers to the heart of Kalihi. The city acquired the bakery site for $8.4 million in 2022, specifically targeting it for affordable housing development as part of its broader strategy to create walkable, transit-friendly communities.
“This is exactly the kind of transit-oriented development we need to see more of in Honolulu,” said Councilmember Radiant Cordero, who represents the Kalihi area. “Families will be able to step out their front door and catch the rail to work downtown or to the airport, while still being rooted in their community.”
EAH Housing, a California-based developer with extensive experience in affordable housing projects across the Pacific, beat out several competitors for the right to develop the site. The organization has previously worked on similar transit-oriented developments in the Bay Area and brings a track record of completing projects on time and within budget.
The timing of the selection aligns perfectly with the rail system’s westward expansion. The Mokauea station, slated to begin service in late 2025, will serve as a crucial link connecting Kalihi residents to downtown Honolulu and other parts of the rail line. The station’s proximity makes the former bakery site one of the most strategically valuable pieces of undeveloped land along the entire rail corridor.
Details about the specific number of units, income levels served, and construction timeline remain under wraps as EAH Housing works through the preliminary design phase. However, city officials indicated the project will likely include a mix of rental units targeting families earning between 30% and 80% of the area median income, with some workforce housing components for middle-income residents.
Community Impact and Local History
The redevelopment represents both opportunity and change for Kalihi, a working-class neighborhood that has long served as home to many of Oahu’s immigrant families and local-born residents priced out of other areas. The former Dee Lite Bakery was a beloved local institution for decades, known for its fresh bread and pastries that supplied restaurants and grocery stores across the island.
The bakery’s closure in 2019 left a significant gap in the neighborhood’s commercial landscape, but also created an opportunity for the city to pursue transit-oriented development goals outlined in its general plan. The site’s location on Colburn Street, with direct access to Nimitz Highway and future rail connectivity, makes it an ideal candidate for higher-density housing.
Local housing advocates have praised the selection of EAH Housing, noting the organization’s commitment to community engagement and sustainable development practices. The developer is expected to work closely with neighborhood groups and the Kalihi-Palama Community Development Corporation to ensure the project meets local needs and preserves the area’s cultural character.
Economic Development Catalyst
The affordable housing project is expected to serve as a catalyst for additional development in the Kalihi corridor, potentially attracting retail and commercial projects that could benefit from increased foot traffic generated by both the new residents and rail passengers. City planners envision the area around the Mokauea station becoming a mixed-use hub with restaurants, shops, and services within walking distance of the rail platform.
The development also supports the city’s broader affordable housing goals, as Honolulu grapples with a shortage of units accessible to working families. With housing costs continuing to rise across Oahu, projects like the former Dee Lite site are crucial for maintaining economic diversity in established neighborhoods.
Construction could begin as early as late 2025, with the first residents potentially moving in by 2027. The project’s success will likely influence how the city approaches other development opportunities along the rail line, particularly as the system expands toward Kapolei in future phases.
For Kalihi residents, the transformation of the old bakery site into affordable housing near a rail station represents the kind of thoughtful development that could help preserve their neighborhood’s accessibility while improving transportation options for the next generation of families choosing to call the area home.
