Real Estate & Development

Kahuina’s 861-Unit Kakaako Tower Breaks Ground, Bringing 60% Affordable Units to Ward District

A massive residential tower promising to deliver hundreds of affordable housing units to Kakaako will break ground in early 2026, marking a significant milestone in one of Honolulu’s most rapidly transforming neighborhoods.

Stanford Carr Development’s Kahuina project, located on Block C of the Our Kaka’ako master plan, will rise as an 861-unit residential tower with an unprecedented 60% of units designated as workforce and affordable housing. The development will also include 42,000 square feet of commercial space at street level.

The project represents a rare victory for housing affordability advocates in Hawaii’s notoriously expensive real estate market, where median home prices continue to soar well beyond the reach of local families.

“This level of affordable housing commitment in a prime urban location like Kakaako is exactly what our community needs,” said Jennifer Nakamura, a housing policy analyst with the Hawaii Housing Finance and Development Corporation. “We’re seeing a developer step up to address the workforce housing crisis that has plagued our islands for decades.”

Strategic Location in Ward District

Kahuina will occupy a prime spot in the Ward district area of Kakaako, positioning future residents within walking distance of Ala Moana Center, Ward Village, and downtown Honolulu. The tower’s proximity to existing and planned transit infrastructure, including the planned rail extension, makes it particularly attractive for working families.

The development sits within the broader Our Kaka’ako master-planned community, which has been steadily transforming the former industrial area into a mixed-use urban district over the past decade.

Stanford Carr Development has structured the project to meet Hawaii’s workforce housing requirements while exceeding typical affordable housing percentages seen in luxury developments. The affordable units will serve families earning between 80% and 140% of Area Median Income, targeting teachers, nurses, police officers, and other essential workers who have been priced out of much of urban Honolulu.

Commercial Component Adds Community Value

Beyond residential units, Kahuina’s 42,000 square feet of ground-floor commercial space is designed to serve both residents and the broader Kakaako community. Plans call for retail, dining, and service businesses that could include everything from a neighborhood market to professional services.

The commercial component aligns with Kakaako’s evolution into a 24/7 live-work-play district, reducing residents’ dependence on cars for daily needs. This walkable design philosophy has become central to the area’s master planning efforts.

The project timeline calls for construction to begin in early 2026, with completion expected by late 2028 or early 2029. Pre-sales for the market-rate units are expected to launch in late 2025, while the affordable housing lottery process will follow state and county protocols closer to completion.

Addressing Kakaako’s Growing Pains

Kahuina’s launch comes as Kakaako continues to grapple with rapid development and the infrastructure demands of a growing residential population. The neighborhood has added thousands of new housing units over the past five years, straining parking, schools, and public services.

However, the high percentage of affordable units in Kahuina could help address community concerns about gentrification and displacement that have accompanied Kakaako’s transformation from industrial zone to upscale district.

The development will also contribute to the Hawaii Community Development Authority’s goal of creating diverse housing options within Kakaako, rather than just luxury condominiums targeting mainland buyers and investors.

For prospective residents, Kahuina represents an opportunity to live in one of Oahu’s most convenient locations without the premium pricing that has characterized much of Kakaako’s recent development. The project’s affordability component could provide homeownership opportunities for local families who have been shut out of the area’s housing market.

As construction approaches, Kahuina will be closely watched as a model for how developers can balance profitability with community needs in Hawaii’s challenging housing market. The project’s success could influence future development requirements and incentives across Honolulu’s urban core.

Derek Fujimoto

Derek reports on Honolulu's business landscape, real estate market, and breaking local news. He specializes in tracking commercial developments and their economic ripple effects.

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