Kahuina: Kakaako’s Next Big Mixed-Use Tower Targets 2026 Groundbreaking with 861 Homes, 60% Affordable
A 32-story mixed-use tower promising 861 residential units — with 60% designated as affordable and workforce housing — could break ground in Kakaako by 2026, marking another major milestone in the urban district’s rapid transformation.
Stanford Carr Development’s Kahuina project on Block C aims to deliver what many consider the holy grail of Honolulu development: significant housing supply in one of the city’s most coveted zip codes, with a substantial affordable component that could actually serve local families.
The proposed tower at 690 Pohukaina Street would include 517 affordable and workforce housing units alongside 344 market-rate homes. The development also plans 42,000 square feet of commercial space at street level, continuing Kakaako’s evolution into a live-work-play district.
“This project represents exactly what we need more of in Honolulu — housing that serves our workforce in a location where people can actually live without a crushing commute,” said Tom Yamachika, president of the Tax Foundation of Hawaii. “The question is whether the economics will work to deliver on these promises.”
The Kahuina project sits within the Hawaii Community Development Authority’s Kakaako master plan, which envisions transforming the former industrial district into a dense, mixed-use urban core. Block C occupies a prime 2.7-acre site between existing residential towers and the district’s emerging retail corridor along Auahi Street.
Workforce Housing Challenge
The project’s workforce housing component could prove particularly significant for Honolulu’s housing crisis. Workforce housing typically serves families earning 80-140% of area median income — roughly $76,000 to $133,000 for a family of four in Honolulu.
These income brackets often fall into a housing gap: too high to qualify for traditional affordable housing programs, but not high enough to compete for market-rate units in desirable neighborhoods like Kakaako, where condos regularly sell for over $1 million.
Stanford Carr Development has experience with mixed-income projects, including the nearby Ke Kilohana towers, but Kahuina’s scale and affordability requirements present unique challenges. The developer must balance construction costs, land values, and financing while maintaining profitability on the market-rate units to subsidize affordable ones.
Infrastructure and Timing Questions
The 2026 groundbreaking target depends on several factors beyond project approval, including Kakaako’s ongoing infrastructure upgrades. The district continues grappling with aging utility systems, traffic congestion, and the need for additional parks and community facilities as density increases.
Recent flooding issues during heavy rains have highlighted infrastructure vulnerabilities, while growing traffic on Ala Moana Boulevard and Kapiolani Boulevard raises questions about the area’s capacity for additional residents.
The Hawaii Community Development Authority has been working with the city to address these concerns through coordinated infrastructure investments, but timing remains uncertain.
Market Context
Kahuina enters a competitive Kakaako market that has seen significant development over the past decade. The Ward Village master plan continues expanding westward, while towers like Aalii and Anaha have established price points that often exceed $1,000 per square foot.
Recent projects have struggled to deliver promised affordable components, with some developers paying in-lieu fees rather than including below-market units. This makes Kahuina’s commitment to on-site affordable housing particularly noteworthy — if it materializes as planned.
The commercial component could benefit from Kakaako’s growing reputation as a business district, with companies like Hawaiian Airlines and various tech startups establishing offices in the area. However, retail space faces challenges from changing shopping patterns and competition from nearby Ala Moana Center.
For Honolulu residents, Kahuina represents both promise and uncertainty. If successful, it could demonstrate that large-scale workforce housing is viable in prime locations, potentially influencing future development patterns across the city.
The project’s timeline through HCDA approval processes and construction financing will provide crucial indicators for Kakaako’s continued evolution and Honolulu’s broader housing solutions. With the district’s master plan calling for thousands more residential units over the coming decades, Kahuina could set important precedents for balancing community needs with developer economics in one of Hawaii’s most valuable real estate markets.
