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Honolulu Chooses CBRE To Market City-Owned Affordable Housing Complexes
HONOLULU — The City and County of Honolulu has issued a Request for Proposals from the private sector in order to transition ownership of the City’s affordable rental housing complexes to private ownership.
CBRE Group (CBRE) has been selected by the City to market the entire portfolio located in various parts of the island of Oahu and has presented a timeline to the City that anticipates completing the transition this year.
The City will continue to own the land under all 12 separate apartment complexes with a total of 1,257 units and the purchaser will be required to abide by the current affordable housing guidelines during the entire 65-year lease term. There are 850 units qualified under Federal HUD guidelines as low/moderate income level and 189 units that qualify as gap income units. The remainder of the 1,257 units are rented to tenants at market rates.
CBRE provides worldwide marketing expertise and has prepared all marketing and due diligence materials and will assist the City in reviewing proposals and selecting a winning bidder from entities interested in acquiring the apartment complexes on a long-term leasehold basis.
CBRE has assembled a national team to handle the sale 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., which is CBRE’s HUD multifamily lending platform and Robert Newstead with CBRE Debt and Equity Finance.
“There is a shortage of rental housing in Hawaii which is especially acute in the affordable housing category,” said Mr. Gomes of CBRE. CBRE will conduct property site tours during the coming weeks. The City timeline calls for initial offers in April.
“The city is committed to preserving its current inventory of affordable rental units,” said Honolulu Mayor Peter Carlisle. “The City seeks an experienced private partner with the interest, resources and successful track record to manage and maintain affordable housing units to create a better living situation for our residents,” he added.
“We prepared an assessment of each of the properties and expect significant interest from both for profit and non profit groups with expertise in this type of affordable housing,” added Mr. Gomes. For information on this opportunity email scott.gomes@cbre.com, call (808) 541-5188 or visit www.CBREMarketplace.com/HAHPI for details and an Executive Summary.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2011 revenue). The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.
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