by Adriana Pop, Associate Editor
The City and County of Honolulu issued a Request for Proposals from private companies interested in managing and maintaining affordable apartment complexes on a long-term leasehold basis. According to the City’s application timeline, initial offers are expected by April.
CBRE Group Inc. (CBRE) has been appointed to market the ownership transition and expects to complete the operations by the end of the year. The company, a global leader in real estate services, will conduct property site tours and will assist the City in the bidder selection process.
The CBRE team in charge with the transition operations will be led by Scott Gomes, executive vice president in the Hawaii office; Thomas Fischer, senior vice president, National Tax Credit Advisory; Jayne Hulbert, president and managing director of CBRE HMF Inc.; and Robert Newstead with CBRE Debt and Equity Finance.
The City will continue to own the land under the 12 separate housing complexes, which are situated in various parts of the island of Oahu. Under Federal HUD guidelines, out of a total of 1,257 units, 850 qualify as low/moderate income, 189 qualify as gap income units, whereas the rest of the apartments will be rented at market rates. During the 65-year lease term, the purchasers will be required to abide by the current affordable housing rules.
The City has decided to follow through with this type of sell since Hawaii experiences a deficit in rental housing. In one of his recent statements, Gomes of CBRE said the shortage is particularly visible in the affordable housing sector. Honolulu Mayor Peter Carlisle stated that the city is determined to maintain its current inventory of affordable rental units. He added that the city seeks an experienced private partner capable of creating better living conditions for Hawaii residents.