City acquires Kaʻaahi Street property to advance long-term transit-oriented affordable housing strategy

HONOLULU — The City and County of Honolulu Department of Housing and Land Management (DHLM) has completed the acquisition of 519 Kaʻaahi Street, advancing the administration’s long-term strategy to assemble and revitalize land surrounding the future Kūwili Skyline Station and support the delivery of thousands of affordable housing units through transit-oriented development.

The acquisition, which closed on June 30, 2026, for $2,700,000, represents another important step in the City’s coordinated effort to transform the Iwilei-Kapālama corridor into a vibrant, mixed-use, transit-connected neighborhood.

“Transforming Iwilei-Kūwili into the vibrant, transit-connected community we envision requires more than constructing buildings. It takes strategic land acquisition, coordinated infrastructure, and a long-term commitment to creating opportunities for affordable housing to flourish,” said Mayor Rick Blangiardi. “Each property we acquire strengthens the City’s ability to shape this neighborhood’s future, leverage public land, partner with the development community, and move us closer to delivering thousands of affordable homes in one of Honolulu’s most important transit-oriented redevelopment areas.”

Over the past year, the City has also engaged DTL, in partnership with BDP Quadrangle, Wilson Okamoto Corporation, and Nippon Koei, to prepare the master plan for the Kūwili Station Transit-Oriented Development Redevelopment Area.

The City has also selected EAH Housing to redevelop Iwilei Center, where approximately 800-900 affordable housing units are planned.

With more than 70 percent of the surrounding area already under City or State ownership, the Iwilei–Kūwili district presents a unique opportunity to coordinate housing, transportation, public infrastructure, and community amenities through a comprehensive redevelopment strategy. The master planning effort now underway will establish the long-term framework for future development while ensuring new investments support a walkable, climate-resilient, and transit-connected community.

“Iwilei-Kūwili is exactly the kind of area where transit-oriented development can help Honolulu grow in a smarter, more connected way,” said Councilmember Tyler Dos Santos-Tam. “When we plan housing, transportation, infrastructure, and public spaces together, we can create more affordable homes near jobs, reduce the need for long car trips, support local businesses, and build a safer, more walkable neighborhood for the people who live and work here.”

The City, through DHLM, continues to advance additional strategic property acquisitions in the Kūwili Station area to create larger redevelopment sites capable of supporting affordable housing, neighborhood-serving uses, and supporting infrastructure as implementation of the master plan moves forward.

The presentation featured during today’s press conference can be accessed using the link.

To learn more about the Iwilei-Kapālama Transit-Oriented Development planning effort, visit: https://www.honolulu.gov/tod/tod-downtown-tod-neighborhood.