The City and County of Honolulu has selected the Kobayashi Group to develop a major affordable rental project on 14 acres of city-owned land in Kapolei. Located between Wakea Street and Kamokila Boulevard, the development is slated to provide approximately 750 new units for local families. This initiative stands as one of the most significant affordable housing efforts on Oahu, aimed at addressing the island’s critical housing shortage.

The project will follow the successful model of the adjacent Parkway Village, another Kobayashi Group development that recently began welcoming residents. By leveraging the Governor’s Tenth Proclamation Related to Affordable Housing, the City intends to streamline the development process to deliver these units with urgency. Mayor Rick Blangiardi emphasized that the project is designed to be more than just housing, aiming to create a transit-oriented community where kama’aina can thrive.

The Kobayashi Group and the City are now entering an exclusive negotiation period to finalize pre-development contracts. As Kapolei continues its growth as Oahu’s “Second City,” this 750-unit expansion represents a cornerstone in the state’s long-term strategy to provide high-quality, sustainable rental options for residents across various income levels.

Alexander & Baldwin, Inc. (A&B), a premier Hawaii-based owner, operator, and developer of commercial and residential real estate projects, has entered into a definitive merger agreement to be acquired by a joint venture formed by MW Group, funds affiliated with Blackstone Real Estate, and DivcoWest (collectively, the “Investor Group”). The all-cash transaction values all outstanding A&B common shares at $21.20 per share, representing an enterprise value of approximately $2.3 billion, which includes outstanding debt. This transaction, unanimously approved by the A&B Board of Directors, will result in A&B transitioning from a publicly traded entity to a private company.

A&B is recognized as the largest owner of high-quality, grocery-anchored shopping centers across Hawaii. The company’s diverse portfolio spans approximately 4 million square feet of commercial space. This includes 21 retail centers, 14 industrial assets, four office properties, and fee interests in 146 acres of ground lease assets, positioning the company as a major supporter of local communities and residents’ daily lives. A&B also developed notable residential projects in Honolulu including Keola Lai, The Collection, and Waihonua.

The acquisition offers significant value to A&B shareholders, delivering a substantial 40% premium over the closing stock price prior to the announcement. As a private entity, A&B will be supported by the extensive real estate expertise of the Investor Group, which is poised to enhance the company’s capacity to serve its tenants and communities. The new ownership has committed to investing over $100 million across the existing portfolio to enhance the properties and reinforce their essential role in the communities they serve.

Crucially for the local market, the company’s strong local focus will be maintained. A&B will retain its name, brand, and Honolulu headquarters, and will continue to be led by its Hawaii-based team. The Investor Group aligns with A&B’s long-term vision of operating as stewards of Hawaii’s commercial real estate, maintaining the company’s legacy as dedicated partners for the islands. The transaction is subject to customary closing conditions, including shareholder approval, and is anticipated to be completed in the first quarter of 2026.

The Oʻahu residential real estate market concluded the month with modest increases in median sales prices across both single-family homes and condominiums, according to the latest report from the Honolulu Board of Realtors. These price gains were accompanied by a noticeable increase in the time properties spent on the market.

“The October market statistics for Oʻahu confirm the enduring strength of our median sales prices, particularly in the single-family home sector where the median climbed over five percent. However, a significant takeaway for both buyers and sellers is the lengthening median days on market,” said Sachi Braden, President and Principal Broker of Sachi Hawaii. “Buyers are exercising more deliberate due diligence, especially with a 19.6% jump in condo inventory providing more options. For sellers, this highlights the critical need for strategic pricing and optimal presentation to stand out in a market where buyers now feel less compelled to move quickly.”

Single-Family Home Resales

Condominium Resales

Sales volume for single-family homes remained flat year-over-year, recording 261 transactions. Despite the stable volume, the median sales price saw an upward trend, rising by 5.7% to $1,162,500.

A key development in this sector was the increase in market duration. The median days on market for single-family homes extended to 26 days, which is 10 days longer than the same period last year. Active inventory also rose by 4.6%, closing the month with 775 active listings.

The condo and townhome market experienced slight gains in both sales and price. Sales volume increased by 9.4%, and the median condo price ticked up 1.9% to $535,000.

Similar to single-family homes, condos and townhomes spent more time on the market, with the median days rising to 44 days, an 18-day increase from the previous year. Inventory saw a significant climb, up 19.6% year-over-year, ending the month with 2,341 active condo listings.

Although average mortgage rates generally trended lower throughout the reporting period, buyer activity showed only minor shifts. Contract signings indicated slight movement, with pending sales rising 4.0% in the single-family home market (260 pending sales) and 1.3% in the condo market (323 pending sales).