Howard Hughes and Discovery Land Company Break Ground on ʻIlima and Melia Towers at Ward Village in Honolulu

Howard Hughes Communities broke ground Sept. 28 on two mixed-use residential towers at its Ward Village master-planned community in Honolulu, continuing a phased development strategy that has already delivered eight residential buildings in the 60-acre Kakaʻako neighborhood. Discovery Land Company is partnering on the residential experience at both buildings.

The two projects — ʻIlima Ward Village and Melia Ward Village — will together deliver 369 residences and approximately 20,000 square feet of ground-floor commercial and retail space. A landscaped botanical pathway designed by VITA Planning & Landscape Architecture will connect the two buildings and link the historic IBM Building to Ka Lei Park, extending the neighborhood's network of pedestrian connections.

Project Details: ʻIlima and Melia Ward Village

ʻIlima Ward Village will rise 33 stories and contain 148 residences. Melia Ward Village will reach 35 stories with 221 residences. Both towers were designed by Robert A.M. Stern Architects, with AHL serving as local executive architect and VITA Planning & Landscape Architecture leading landscape design. The architecture draws from early 20th-century Honolulu landmarks, including the Honolulu Museum of Art, the Alexander & Baldwin Building and the Dillingham Transportation Center. Design elements include shaded walkways, lanais, landscaped gardens and native plantings.

The IBM Building, which Howard Hughes Communities preserved through a $24 million restoration completed in 2015, will serve as a gateway to the botanical pathway connecting the two towers to Ka Lei Park and the surrounding neighborhood.

"ʻIlima and Melia represent another important step in our long-term commitment to Honolulu," said Doug Johnstone, Head of National Development and President, Hawaiʻi Region for Howard Hughes Communities. "Alongside new homes and businesses, these projects will create landscaped connections between the historic IBM Building and Ka Lei Park. Our team has thoughtfully planned how the buildings, streets and open spaces work together to enrich daily life throughout the neighborhood."

Bonnie Wedemeyer, Executive Vice President, National Condominium Sales & Strategy for Howard Hughes Communities, said buyer response has been strong ahead of construction. "Our vision for ʻIlima and Melia brings together distinctive homes, the experience we are creating with Discovery Land Company, and the established neighborhood that makes Ward Village special," Wedemeyer said. "The strong response from buyers reflects their confidence in that vision. Beginning construction is an important step in delivering on the commitment our team has made to our future residents."

Phased Development and Financial Context

The groundbreaking follows a period of substantial absorption at Ward Village. The Park Ward Village, a 545-unit tower, reached approximately 97% sold by June 30, 2026, with 527 units closing in the second quarter and generating $226.6 million in net cash proceeds after construction-loan repayment. Those closings increased condominium sales, net of cost of sales, by approximately $131.5 million in the quarter. Howard Hughes Holdings reported $158.4 million of net income attributable to common stockholders in the second quarter of 2026, compared with a $12.1 million net loss in the prior-year period, with the improvement materially driven by project-level condominium closings.

Across its Ward Village pipeline, Howard Hughes Communities has reported more than $4 billion of expected future condominium revenue, with approximately 78% already under contract. That contracted backlog provides a financial basis for continuing construction across multiple simultaneous projects.

ʻIlima and Melia join Kalae and The Launiu Ward Village, both currently under construction, and the planned Mahana Ward Village in the community's active development sequence. Ward Village has previously sold out eight mixed-use residential towers: Waiea, Anaha, Aeʻo, Ke Kilohana, ʻAʻaliʻi, Kōʻula, Victoria Place and Ulana Ward Village. Ulana, a 696-unit workforce-oriented condominium project, completed its final six closings in the first quarter of 2026.

Honolulu Market Conditions

Honolulu's residential market remains supply-constrained, with multifamily vacancy at approximately 3.8% and retail vacancy at approximately 3.2%, conditions that support the case for well-located residential density paired with neighborhood-serving retail. Office vacancy stands at approximately 16.5%, reflecting continued pressure on conventional office demand — a dynamic that makes the residential and retail-focused programming of ʻIlima and Melia consistent with current market fundamentals. Multifamily cap rates in Honolulu have been reported in the range of approximately 4.75% to 5.50%.

The roughly 20,000 square feet of commercial space across the two buildings is modest in scale and oriented toward neighborhood activation — shops, dining and pedestrian connectivity — rather than speculative office or large-format retail.

Community Investments and Site Preparation

The groundbreaking was accompanied by $30,000 in charitable contributions: $15,000 to the Hawaii Architectural Foundation to support architecture education and opportunities for future architects, and $15,000 to Purple Maiʻa Foundation, which runs culturally grounded programs helping Native Hawaiian and local students build skills in technology and innovation.

"We're grateful for Ward Village's support as we continue creating pathways for the next generation of culturally grounded, community serving technology makers and problem solvers," said Nicole Brodie, vice president of operations at Purple Maiʻa Foundation. "This investment will help expand opportunities for our keiki to build technical skills and apply them to address the needs of Hawaiʻi's communities."

Ahead of redevelopment of the former Ward Centre block, tenants including Kamitoku Ramen, Johnny's Dog Spa and Sweat + Soul relocated to renovated spaces elsewhere in Ward Village. Howard Hughes Communities also worked with Re-use Hawaiʻi to salvage reusable materials from Ward Centre and separate concrete, steel, asphalt and other materials for recycling. Across previous Ward Village projects, that partnership has diverted more than 870 tons of waste.

Sources

Howard Hughes Communities — Ward Village Breaks Ground on ʻIlima and Melia (Sept. 28, 2026)