ONE Ala Moana Coming to Honolulu

Sales and Construction Dates Near forLuxury Living at Ala Moana Center

HONOLULU, November 1, 2012 – HHMK Development, LLC, comprised of landowner and developer The Howard Hughes Corporation (NYSE: HHC) and a joint venture of Honolulu development firms, The MacNaughton Group and Kobayashi Group, today announced the latest developments in its highly anticipated luxury residential tower to be built at Ala Moana Center, the world-renowned shopping destination. This world class development, named "ONE Ala Moana," will offer an ultra-luxury lifestyle to a mix of local and international residents. Earlier this year, HHMK Development shared its plans to evaluate development of luxury condominiums above the existing Nordstrom parking structure at Ala Moana Center, which was designed to support a residential tower.

The exclusive, boutique 23-story tower will offer 206 one, two and three bedroom condominium homes ranging from 760 to 4,100 square feet. The ONE Ala Moana design will provide intimate, private living with no more than seven homes per floor within two attached but separate towers, each with individual elevator systems. Each home will feature Sub-Zero, Wolf and Miele appliances, German cabinetry from Studio Becker, and superior finishes. In addition to exceptional interiors, the building will feature an exclusive service, amenity and concierge package unique to Hawaii, which will include benefits from ONE Ala Moana’s proximity to Ala Moana Center’s outstanding retail shopping, service, dining and entertainment options.

"We are seeing extensive interest among potential purchasers and anticipate rapid sales because of the unique location, high quality design and finishes and the fact that buyers could be living in their new homes within the next 24 months," said Bert Kobayashi, Sr., Kobayashi Group Founder and Senior Advisor. "The early interest is from individual buyers and the high-end realtor community, both in and outside Hawaii, who know our reputation and dedication to exceptional quality and stand-out developments," Kobayashi added.

Both Kobayashi Group and The MacNaughton Group, individually and as partners, are known for many popular Hawaii projects, including Hokua, a luxury condo tower completed by the partners in 2006. Both developers are pleased to partner with The Howard Hughes Corporation for the first time on ONE Ala Moana, The Howard Hughes Corporation’s first high-rise residential tower in Hawaii.

"ONE Ala Moana will offer a one-of-a-kind lifestyle experience with the best in luxury retail and restaurants at your doorstep," said David R. Weinreb, Chief Executive Officer of The Howard Hughes Corporation. "We look forward to our continued work with our esteemed partners, The MacNaughton Group and Kobayashi Group, as we launch the sales and construction phase of ONE Ala Moana."

HHMK Development has selected a project team of local and nationally recognized firms who are dedicating their expertise to develop designer level interiors and exteriors. Hawaii architectural firm Benjamin Woo Architects and San Francisco- and Chicago-based Solomon Cordwell Buenz (SCB) are working together on an outstanding architectural design. The architectural features will be complemented with building interiors designed by Hawaii-based Philpotts Interiors.

Prices for ONE Ala Moana luxury condominiums are expected to range from approximately $500,000 for the lower floor mauka (mountain) view one-bedroom condominiums to over $9 million for penthouse suites. Average prices for residences in this luxury building will average approximately $1.6 million.

The project recently received commitments for $40 million in mezzanine debt with profit participation. A&B Properties, the real estate subsidiary of Alexander & Baldwin, Inc. (NYSE: ALEX), one of the largest landowners and developers in Hawaii, is providing $20 million. Another $20 million is being provided by List Island Properties, LLC, a U.S. subsidiary of LIST Co., Ltd., a Sotheby’s International Realty affiliate based in Japan. LIST will also serve as an exclusive representative for buyers in Japan for the residences.

The project’s exclusive broker is Heyer & Associates LLC, an authority in Hawaii’s luxury high-rise condominium sales. Joyce Timpson & Associates is handling the marketing. Woo, Philpotts, Heyer and Timpson have been involved with several of the most successful condominium projects in Hawaii, including Hokua and Capitol Place, both developed in partnership by MacNaughton and Kobayashi. Hokua and Capitol Place were each recognized as a "Building of the Year" by the Institute of Real Estate and "New Project" award winners by the National Association of Industrial and Office Properties (NAIOP).

The MacNaughton Group Chairman Duncan MacNaughton, concluded, "When we delivered Hokua to the marketplace, it surpassed everyone’s expectations, and now ONE Ala Moana will set an even higher standard of excellence." MacNaughton added, "We anticipate that as early as Fall 2014, ONE Ala Moana will bring Hawaii what many other large cities already offer, luxury living attached to world-class dining and shopping."

To register for more information, visit: ONEalamoana.com

About The MacNaughton Group

The MacNaughton Group (TMG) is a Hawaii-based diversified group of companies that includes real estate development, commercial brokerage, retail and other operating companies. Over the years, TMG and its partners have helped shape the “lifestyle landscape” of Hawaii with their direct involvement in the introduction and development of a number of well-recognized projects and companies, including Waikele Factory Outlets, Starbuck’s Coffee, Target, Kmart, Costco, Whole Foods Market, P.F. Chang’s, and in partnership with the Kobayashi Group the successful luxury residential condominiums Hokua and Capitol Place. MacNaughton and Kobayashi also recently jointly developed Kapolei Commons and Kona Commons shopping centers on the Islands of Oahu and Hawaii, respectively.

About Kobayashi Group

Kobayashi Group (KG) is a privately owned and managed boutique real estate development/investment firm. With its focus in Hawaii, KG has developed over $3 billion worth of property in the state. In addition to Hokua and Capitol Place KG major projects include the exclusive private resort community Kukio Golf and Beach Club on the Island of Hawaii and the ANdAZ Resort and Residences at Wailea, Maui. KG is also a partner with The MacNaughton Group in the development of the Kapolei Commons and Kona Commons shopping mall. The company brings unparalleled experience in a wide range of developments and investments including residential, resort, commercial, medical facilities and municipal projects.

About The Howard Hughes Corporation

The Howard Hughes Corporation owns, manages and develops commercial, residential and mixed-use real estate throughout the country. The company's properties include master planned communities, operating properties, development opportunities and other unique assets spanning 18 states from New York to Hawai‘i. For more information on the company, visit www.howardhughes.com.

Safe Harbor Statement

Statements made in this press release that are not historical facts, including statements accompanied by words such as “will,” “believe,” “expect,” “enables,” “realize,” “plan,” “intend,” “transform” and other words of similar expression, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management’s expectations, estimates, assumptions and projections as of the date of this release and are not guarantees of future performance. Actual results may differ materially from those expressed or implied in these statements. Factors that could cause actual results to differ materially are set forth as risk factors in The Howard Hughes Corporation’s filings with the Securities and Exchange Commission, including its Quarterly and Annual Reports. The Howard Hughes Corporation cautions you not to place undue reliance on the forward-looking statements contained in this release. The Howard Hughes Corporation does not undertake any obligation to publicly update or revise any forward-looking statements to reflect future events, information or circumstances that arise after the date of this release.

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