Good afternoon, everyone, and welcome to the first Investor Day for Howard Hughes Holdings. My name is Eric Holcomb. I'm the SVP of Investor Relations. We're happy that everybody could join us here today in the Seaport in Lower Manhattan. For those of you here in the audience, thank you for joining us, and for everyone on the webcast, thanks so much for tuning in. Before we begin today's presentation, I would like to direct you to our website, howardhughes.com, where you can download the Investor Day presentation that will be presented during today's event. You may also download our supplemental financial package, which includes reconciliations of non-GAAP financial measures that will be discussed today in relation to their most directly comparable GAAP financial measures.
Certain statements made today that are not in the present tense or that discuss the company's expectations are forward-looking statements within the meaning of the federal securities laws. Although the company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be achieved. We have a lot of great topics today that will be covered by our CEO, David O'Reilly, our president, Jay Cross, and our CFO, Carlos Olea. But before we begin the presentation, we have a short video to play that will give you an overview of what we do here at Howard Hughes and how we create shareholder value every day. With that, turn your attention to the screens. Thanks for joining us.
I think there's a distinction between what is generally associated, generally associated with a master planned community and the way Howard Hughes views a master planned community. As community builders, we're part of the fabric of our communities. We live here. We're building communities where we want to have a myriad of experiences and opportunities. So the decisions that we make can't just be the short-term developer's mindset, it has to be a long-term community builder's mindset. The Howard Hughes Corporation is eight communities that we're helping to build and develop across the country. In the far west, with Ward Village on the island of Oahu in Hawaii, moving to Teravalis in the West Valley of Phoenix, Summerlin, just outside of the Las Vegas Valley.
The three communities here in Houston, Woodlands, Bridgeland, and Woodland Hills, Columbia, Maryland, halfway between Baltimore and Washington, D.C., as well as the South Street Seaport in the Lower Manhattan of Manhattan.
Amazing! It's an amazing feeling to finally see it, right?
It's happening, yeah.
Live. Ready.
That's what we're always developing. We're always trying to take the pulse of our residents to say: What do our residents need? What are they looking for that would help improve their lives? And it's our job to deliver it. It's easy to replicate what somebody else did before. It's harder to pioneer and push the envelope into new territory, creating something that's never been done before, that is, you know, the 3-0 fastball in the middle of the strike zone of what our consumers want and need. A, a community builder builds inclusive, sustainable communities for decades. They don't just think about the bricks and sticks on the postage stamp, but we think, just as importantly, what's the impact of what we're building on the surrounding land, on the surrounding residents? And what's that impact going to be, not just today, tomorrow, but for generations?
At the end of the day, if we're building that next great amenity that people want, the quality of life here is better. More people want to live here. Their home values go up, our land values go up. It's this incredible symbiotic relationship with our residents, where we are perfectly aligned in creating a great place to live, raise a family, go to work. And it's amazing how all of those things come together when you think long-term, meeting your needs. And, Jim Rouse said it better: "What we ought to build is what better meets the yearnings and needs of people than what is today.
All right. So thank you everyone for joining. Hope you enjoyed the video. I know every time I watch it, I realize how fat the back of my head is. It's kind of scary. It's an angle I don't get of myself that often. But I'm going to kick us off. I'm going to talk a little bit about the state of the business and where we are today, and the results that we've seen since our last Investor Day, a little over a year ago. Talk a little bit about where the market is today and how we think that's going to impact our business for the next year going forward, and what you should expect to see from us in terms of results. I'll turn it over to Jay, who's going to walk through our near-term and longer-term planning on the development pipeline.
Not just the projects, but how those projects fit into the overarching master plan, and why we don't think about just this building, but how this building fits into everything else. Carlos is gonna then take over and talk about our HH communities, which is our ESG, if you will, and our strategy as it relates to sustainable and inclusive communities. And, you know, as was mentioned in the video, and as Carlos will say again, we do it not because we're solving for some test that an institutional investor set up for us as a scorecard. We do it because it's the right things to do for our residents, because it makes our communities better and therefore creates more value for us and for value for all of our shareholders.
We'll turn to the balance sheet, our debt maturities and swaps, which I know everyone is very focused on in today's capital markets, and then update our NAV based on what we did the past two investor days. Same methodology, standard set of assumptions coming from the same third-party sources, and it's an illustrative of some of the parts analysis. So turning on to our state of the business. At the end of the day, taking a step back, what is Howard Hughes? Well, we're a community builder, and we have an incredible track record of delivering outsized risk-adjusted returns. We sell land to home builders, residents come in and move into our communities. Those residents want amenities.
We build those amenities at outsized risk-adjusted returns, which therefore, in turn, makes our communities more valuable, more people want to move in, and that cycle goes on and on. That virtuous cycle of value creation is one of the unique synergies we have by integrating land, master planned communities, and operating assets, and a development skill set. The other, really importantly, is the self-funding business model we have. Carlos will go into this a little bit more detail, but the recurring cash flow of our operating assets, our NOI, the net proceeds from our land sales and condo sales, cover our interest overhead, and the rest is the equity to fund our development. We don't raise third-party equity. We don't dilute our shareholders to drive these returns. Our communities, as you saw in the video, span from Wall Street to Waikiki.
Today, you've recently seen one of our announcements. We created HHH Holdings or HHH, changed our ticker. The reason for that was simple: we wanted to segregate our real estate assets that remain in HHC as a subsidiary of HHH from our non-real estate assets, namely our investment in Jean-Georges Restaurants, a passive minority investment, and our ownership of the baseball team, the Las Vegas Aviators. The transfer of the Aviators is still subject to final details with Major League Baseball, but we're hopeful we can effectuate that by the end of the year. What this really does is it takes our non-real estate assets and the volatile nature of their cash flows away from the covenants associated with our traditional real estate debt that still stays in HHC.
So it just makes it for cleaner reporting and allows us, from an internal reporting standpoint, to make it more clear and make it easier to maintain our debt covenants. It has really no impact on the day-to-day operations of the business, nor should you expect any sort of major announcement as a result of this. Turning to our MPCs, the results have been nothing short of spectacular. In an interest rate environment that's gone from the 2s and 3s to the 6s, 7s, and 8s, when nobody's ever going to buy a home again, we've actually shown the opposite. Almost $270 million in a trailing 12 months of MPC EBT, a 19% increase in price per acre. We're selling more acres at a higher price per acre because people still want to buy homes. I'll talk a little bit more about that later.
Some of those results were driven in a couple of examples. The first is Aria Isle in The Woodlands, in the Woodlands Lake, in the middle of our great community. We had 15 acres we sold for $2.8 million per acre. Unfinished lots to builders or homeowners that are going to build their own custom homes. A record price per acre north of Houston. We have 2 lots left, and we're going to make sure we get a great price on those, too. Also, a recent announcement in Bridgeland. Yesterday now morning, we put out a press release where Chevron closed on 77 acres of commercial land in Bridgeland Central. To me, this is the snowball that starts rolling downhill that hopefully creates an avalanche of development opportunities in Bridgeland.
More commercial, as other companies follow suit and follow Chevron, that's building an R&D facility focused on low-carbon future. I, I think that's alternative energy, but we'll use their words. And, you know, they have as part of that purchase, they have an option on some incremental acres should they choose to expand. We think this is not just a catalyst for commercial development, but also for incremental home sales and absorption within our multifamily properties as well, as well as increased demand for retail. And Jay's going to talk about some of those developments that we have real time, some of which are out of the ground, some of which will start in the next quarter or two. In Teravalis, we have graded almost the entire first village of Floreo, 330 acres. We have graded the commercial acreage as well.
We have LOIs in place with five home builders and expect to turn those LOIs into contracts and to sell on our first 500 or so lots by the end of this year. We're also in negotiations with a grocer as well as a hospital system to take some of the commercial parcels. It's now moving, and it's moving very quickly, perhaps a little bit slower than we envisioned when we first acquired it, given the change in housing market, but the demand is still there, and the demand is there at a price per acre, well in excess of our basis of about $17,000 an acre. Our operating assets continued to deliver, and post-pandemic, the world decided no one was going back to the office. I think we're trying to break that rule.
Our office NOI climbs higher, our retail NOI has grown, our multifamily NOI has grown at 29% as we continue to deliver these developments within our communities at outsized risk-adjusted returns. Digging deeper into office, year-over-year, comparing this first half of this year to last year, we're up $6 million, almost 10%, and that's been driven by the leasing that you see on the top right-hand side of the slide. It's been across all three of our communities. And if I just take the three largest buildings in each of our markets, 9950 Woodloch Forest, 6100 Merriweather in Columbia, and 1700 Pavilion in Summerlin. They're 91%, 95%, and 72% leased, and that 72% lease has another 20% negotiation, not including that, those leases in negotiation.
Those three buildings alone drive $18 million of NOI, once those leases have been built out and the free rent is burned off. Meaningful growth in an office portfolio that last year did $111 million. All of that lease-up has occurred in the past year, predominantly in the past two quarters, as you can see in the chart. Across multifamily, nothing short of dynamic results. We continue to build buildings and lease them up as fast as we can, and the growth in our NOI there has been absolutely superb. Part of those results go back to the competitive advantages that we have as a master planned community developer, as a community builder. We own the overwhelming majority of the Class A multifamily in our communities. We own the vacant land, and as a result, have a unique ability to influence new supply.
We're pretty much the only one that can deliver new multifamily in any of our communities. That's an incredible benefit as you think about developing, and there's three examples here, one in Bridgeland, one in Downtown Columbia, and one in Summerlin, where we show, and I'm not going to read all these numbers, you guys can see it fine enough. The rents we first started leasing at, the rents we're currently leasing at, and then on the bottom half is the second phase of the brother or sister property that's above. Now, if these were competitive properties, the owner of the first property on top would cut their rates to hold their tenants and make sure they didn't move across the street to the new property. But because we own both of them, and we own all the multifamily in these communities, we raise rates.
You want to go? Go. It's cool. We hold the line on higher rates, and it drives even better performance at our new properties, leasing up at rates higher than expectations, at higher than market. And the results across all three of these, I think, really demonstrate that. Where we started out with Tanager in Summerlin at $1.96 back in 2019, not that long ago, and today we're up at $3.11 at the sister property right next door. Competitive advantage of dominant market share resonates time and time again. It does in office as well. Across our retail portfolio, Hughes Landing, Downtown Summerlin, and the ground floor at Hawaii, incredibly resilient as well. I'll focus a little bit on Downtown Summerlin because I think this is our largest by far and away.
I don't think I know it's our largest by far and away. It contributes to most of our retail NOI. We've had incredible success coming out of the pandemic, backfilling weaker performing tenants with better performing tenants. Loft to Nike, increasing sales 790%. Chico's to Free People, and most recently, at least, we just signed our first luxury brand in Downtown Summerlin, replacing Barbell Apparel with Chanel. We don't have sales data yet because we're still just planning and going to start construction there shortly. But all of those have driven those sales per foot number that you see in the top left higher as we're replacing weaker tenants with better performing ones. This is a Darwin moment. The short-necked giraffes are going away.
We look at those expirations over the next three years of 355,000 sq ft as an incredible opportunity to drive performance higher. We have the property that brands want to be in, that retailers want to be in, and we're going to be incredibly selective about which tenants we renew and which tenants that we do not renew, and specifically upgrade to better concepts over time that drives the performance of the center higher and higher every quarter. In our strategic development segment, we've completed five buildings over the past couple of years at great returns, and those returns continue to go higher as our same store results increase quarter-over-quarter as we drive those rates higher. Right now, under development, we have 2.2 million sq ft, about $1.8 billion of total cost in five regions.
We believe the returns that we're going to see on those are going to look very much like what we saw on the first couple billion of projects that we executed. 9% return on cost, 21% levered return on the first $800 million of equity we invested. Outsized risk-adjusted returns, given our dominant market position in communities that we have unique control in. Occasionally, those development properties that we have don't necessarily fit into the broader scale of what we do. We want to own the Class A office. We want to own the Class A multifamily. We want to own the mixed-use retail downtown destinations. I don't necessarily need to own the hotels or a one-off strip center on the edge of The Woodlands or self-storage facilities.
To that end, some of the times that we build these assets, we will look to monetize. Here's two examples that we've done over this past year, past couple of quarters. In two projects that we built for a total of $37 million, we sold for $38 million. $27 million-$38 million. Almost, almost a 2.0 unlevered multiple of capital in four and five years. I don't think these returns are available to typical real estate developers. I think they're available to us, given our unique position within these communities. In Ward Village has been nothing short of astounding, even throughout the pandemic, with over $3 billion of revenue harvested to date at a 25%-30% margin. We have six completed, three under construction, one under pre-sales, and we'll talk a lot about those projects coming up.
First, the six that we've completed, we have five of the six completely sold out. We have 2 units remaining in the last building, Kō'ula. You can put your name in a hat to order one on the way out in the back. Get them now before they're gone. Again, and delivering on 2,700 units with nominal equity and great returns on equity, great multiple of capital on all of these deals, and we're gonna continue to do that again on the next towers, which Jay will get into a lot more detail on. At Seaport, we've seen a record level of foot traffic here. As the local residents, the local New Yorkers, have come back in tremendous numbers, a 47% increase, 2022 over 2021, and continued momentum into 2023 at a 10% increase.
This has driven a 61% increase in revenue, and driving our retail sales higher, driving our concert performance higher, driving our restaurant performance better. And we can see that in a lot of what we're gonna do, and I'll talk in a couple of slides. First, on our landlord business here at Pier 17, where we're in, we have ESPN and Nike. ESPN is now extended through the end of 2025, and 88,000 sq ft of available space that we are laser, laser-focused on leasing. A small portion of it is what you're in today. This is the second floor spec suite. The vast majority of it is on the fourth floor above ESPN and Nike, and we'll tour that a little bit later on. On the other side of the FDR, within the IPIC, the Fulton Market building, we're 100% leased.
IPIC is open and running, doing very well. On the third floor above them, Alexander Wang is in build-out, and they should be moving in and paying rent by the end of this year. On the ground floor, we have the Lawn Club, which is a, I think, bowling alley, but with lawn games, croquet, and you throw the beanbag into the wooden thing. Cornhole. Cornhole is what they call it. For anybody who wants to come in with food and drink, and that will be a great activation on the ground floor of the cobblestones. Throughout the rest of the cobblestones, we're 72% leased, with a mixture of long-term leases like McNally Jackson Books and some more temporary pop-up, like, Funny Face Bakery or Hit The Deck.
On the roof, this has been an incredible year, and the momentum continues to grow for our concert series on the roof. This is just concert series. This is not including the activations that we do. Year to date, and we're not through all of our shows just yet, we're exceeding concert sales of any year that we've done previously with over 3,100. Our profitability per concert has increased meaningfully year after year after year as we refine our business model, get better acts that sell through, and figure out a way to, at the end of the day, serve beer faster, more efficiently, drive better profitability, and that's what we continue to do. The results here have been spectacular, and at one of the best concert venues, not just in New York, but I think in the East Coast.
Our restaurants continue to perform better and better. That increased foot traffic is driving higher revenue per square foot and higher profitability per square foot . The names of the restaurants have been protected, so that we, you know, keep everybody anonymous. But at the end of the day, on the right-hand side, the profitability that we're seeing on a per sq ft basis, I think is at or in at least one instance meaningfully above where we would lease this space on a traditional lease. And five years ago, when we set out on the strategy to partner with restauranteurs instead of sign a lease with them, it was because we wanted to capture the upside. But we also wanted to mitigate our downside, that if a restaurant on a lease went away, they just lock the door and take off.
Here, we have partners that have invested with us, that are committed with us, that are invested in these restaurants and want them to be successful, and we're seeing that in the results, and they continue to get better and better every year. The Tin Building. We've talked a lot about the Tin Building. The traffic, the revenue have been exceptional. The sit-down restaurants have exceeded our expectation. The fast casual retail and e-commerce have lagged a bit, and the team is reworking right now on refining each one of those business models and getting them into the profitability. I put an example of one of our restaurants and our firsthand experience on the bottom right, because it's not unusual to see a restaurant, as it first opens, lose money, but eventually, very quickly, turn to profitability.
As you refine the menu, you refine the operating expenses, you refine the price, you get it just right. It takes time. And in the most profitable restaurants that we have here on the Pier, our first 12 months were tough, but that's what it takes. And in the Tin Building, we don't have just one, but we have 21 venues. So we're refining that model for each one of those 21 venues real time. And is it taking longer? Clearly. But it's getting there, and it's going to get to profitability. All right. Pause there. That's a little recap of the results, and we'll shift to some of the market dynamics out there and how they're impacting each segment of our business. First, on the home building side, yes, nationally, if you look at the correlation between home sales and mortgage rates, correlated.
I don't think it holds up within our markets. What we've seen is that the rise in interest rates hasn't dampened demand as much as it's changed supply. The higher interest rates has taken resales out of the market, so the only thing left to meet that demand of a home buyer is new construction. There's limited lots out there, which means home builders still need our land, and they're still paying up for our land. I'll go into it in a bit more detail. Again, national home sales decently correlated with interest rates, and for the stat geeks out there like myself, an R squared of, you know, 0.27, pretty good. In Houston and Las Vegas, much less so. And in fact, in Las Vegas, it's negatively correlated with rates, which I don't understand, but it happens.
So going back to 2000, what has the mix of total sales been? The shaded areas, total sales, the dark blue are resales, the light blue are new home sales. And for the first few years after the turn of the century, they were largely on top of each other. And then in 2009, 2010, they diverged, and we saw a 12-year period of divergence coming out of the GFC, where resales were the predominant number of new home sales. And more recently, what we're seeing is that divergence coming back together. That yes, overall home sales nationally, the blue-shaded area over the last year, has come down. But resales have come down so fast that new home sales, going back to the middle of last year, are up 26%. That's what drives home builder demand for our land.
Clearly, people are still buying, and the average price per foot that they're willing to pay for a home is pretty sticky. It hasn't fallen off a cliff. What has changed is the size of the home that folks are buying. Higher interest rates clearly impact affordability, and my head's not completely in the sand on that. But you may give up that bonus bedroom, you may give up that third car garage, you may postpone the pool for a couple of years. You're reducing the size of your home, but you're still paying a pretty fancy price per square foot. That really locked in our land value, that the price per square foot hasn't moved. You know, I talked a little bit about, you know, how new sales are filling the gap. This shows it.
The dark blue line on the left is existing inventory and how it's declined over the past seven years, while the new home inventory, the light blue line, has increased. On the right, we show that the 13% of all home sales over the last 20 years have been new home. Only 13% over the last 20 years. Today, we're, we're bouncing around 29%-30%. The makeup of home sales, of new home sales, has doubled, and we see that continuing to go higher, as the higher rates means those that have a low mortgage rate are very reluctant to sell their homes. The most valuable asset they have in their home isn't their car, jewelry, art, or, or anything physical, it's their mortgage. Selling their home means giving up their greatest asset.
Couple that with continued record-low inventory of vacant developed lots within our markets, both within Bridgeland and Summerlin, and new home sales that drove meaningfully higher in the first half of this year, gave us incredible confidence to raise our MPC EBT guidance by $70 million or 30% at the midpoint on our last call. All of those tailwinds give me great confidence into the second half of this year, and I believe into 2024 as well. Turning to our operating assets, we continue to be focused on closing the gap between our in-place NOI and our stabilized NOI. And how are we going to do that? Well, the biggest component of it is within our existing assets, and we talked about our three largest office assets, and we have $58 million to close the gap out of those.
Those three assets alone, which are 91, 95, 72% leased, again, represent 50% of that. Turning to retail, we have some Ward Village COVID concessions burning off, as well as the turnover of the older warehouse retail that we've knocked down, built a new tower with new ground floor retail. Once that tower is complete, we'll lease that up and close that gap, as well as the mark to market of those new tenants that I talked about in Downtown Summerlin starting to pay rent. In multifamily, 70% of it is in two assets that have recently completed, that moved from the under construction into the existing asset. They're 87% and 49% leased. That's 70% of that.
Within the new construction, it's, it's mixed between multifamily, single-family for rent, medical office, small office building in Summerlin South, and two retail at the ground floor of condos at the bottom of, of our towers in Ward Village. Jay can talk about each one of those projects in more detail and why we believe in them, and why they're going to continue to deliver this NOI over time. All of that, we increased our guidance in our operating assets again last quarter to a low end of the range, up 1%, upper end, up 4%, $241 at the midpoint. A meaningful jump from what we had previously, and, we're optimistic that, that we'll continue to be able to see our NOI drive higher and higher each year moving forward. Our strategic developments continue to move on time and on budget.
We have a single-family for rent, medical office building, and an office building in Summerlin South, all under construction, all on time and on budget. We're excited for those to come to fruition. We're just starting to lease up the single-family for rent Wingspan right now, and the results so far have been excellent. New condos coming down the pipe. We have three that are in construction: Victoria Place, The Park, Ulana. One that's in pre-sales, which construction will start hopefully pretty soon, that will deliver in 2026. These four towers that are 100% sold, 93% sold, 99% sold, and 83% sold, represent $2.5 billion of revenue. Ulana is our last reserved workforce housing tower. That's about a zero margin, but the other three towers are well within our guidance range of 25%-30%.
Beyond that, there are four more towers that we're designing, getting ready for, that are behind the scenes, and Jay has a lot more color on those we'll talk about in a bit. Those are our deliveries between 2027 and 2030. All right, finally, what we need to do with the Seaport and what the market outlook is for Seaport and going forward. First, Pier 17, leasing this 88,000 sq ft has got to be job one. That is what we are entirely focused on. We have to execute that to get to profitability. In the Historic District, we have to open those two new tenants, Alexander Wang and Lawn Club, and we have to lease the balance of the retail in the Historic District, 72% leased today, 28% to go.
In the Tin Building, we have to get those fast casual retail and e-commerce outlets optimized, delivering the results that we anticipated. I think those results are within reach, something that, again, the team is incredibly focused on. All right, I've said a lot. I've taken a lot of time. I need a drink of water. I'm going to turn it over to Jay and let him walk us through the development pipeline.
Thanks. Thanks, David. Thanks, Jay. Good afternoon, everybody. As David mentioned, oftentimes when we're talking about our development pipeline, we're talking about individual buildings and what those expected returns are. But I think it's important to consider that the way we think about what are we going to develop, when, and where, it's always based on what is the master plan. What's the master plan for that community? And we have to constantly look down the road five years, 10 years, and 20 years to think about what's going to fill in, when, and how, so that at any given point in time, the community looks like it's a complete community.
So what we thought to do today is we'd walk through all six regions, tell you a little bit about how we see the region developing longer term, and then what we see happening in the short term. Of course, we'll start with the biggest, Texas, and The Woodlands in particular. The Woodlands, for us, is really kind of the model for our other communities because it's the most mature, it's got the most development. It's 28,000 acres, and now it's all completely. As a result of the Aria Isle sale, it's completely sold out in terms of single-family home, and we're focused on the little blue edges you see all around the perimeter of it.
Now, while that may seem like not very much, it's actually 700 acres, and the big three pieces of it are Research Forest, where we—Division of Life Science coming in terms of a campus eventually. Hughes Landing, which is a mixed-use community on the lake, and then what we'll talk about today, which is the Waterway and the Town Center. So as we focus on the Waterway and the Town Center, even the Town Center has got a huge amount of potential. When you focus on our corporate headquarters at 9950 and then Occidental World Headquarters adjacent to us, we see a corporate campus in the lower right-hand side of build-to-suit around the lake. And that'll be the heart and soul of the Class A office space in The Woodlands.
As we move a little bit farther to the west, we have an existing multifamily community. We'll continue with two more pads in there, and then as we get to m we'll talk a little bit about that. Now we're talking about something that's going to happen in the next couple of years. Then as we flow farther to the west, we eventually get to the lakefront, where we're building our first luxury condo in The Woodlands. And then in between, we've got other sites that are starting to fill in with senior housing, more multifamily. In the blue squares are where we're talking to the township about township lands that are in the path of development and how can we knit it all together.
The other thing we do is we also work hand in hand with not only the township, but other landowners around us. So in the case of the Downtown The Woodlands, we've got Market Street, which is super successful, headquartered at the top by H-E-B, and then the Brookfield Mall, which is on the right side. Brookfield got approval to build more retail in a parking lot and two hotels and came to us because of our restrictive land use covenants to seek permission to do so, and we started talking about how we can work together.
One of the big aspects of this is we can introduce multifamily onto the shopping center site, and more importantly, knit the shopping center into Market Street and into The Woodlands Waterway Square, where we have the Westin Hotel, the Marriott Hotel, and our, our remaining retail in downtown, and then start to think about how one communicates along the waterway, past Riva Row to the amphitheater and back up to Market Street. We see this loop really being the heart and soul of The Woodlands, which we hope to develop in the next couple of years. Riva Row is about to start construction literally any day now. We closed on a $93 million construction loan. Hooray! This will be the nicest multifamily that we've built to date.
Concrete structural frame, masonry building, enhanced amenities, townhouses wrapping the parking, facing both the waterway and the street, Riva Row. And directly across the waterway from it, we're now starting to think about a small retail development. We call it Tiny Box, which is just a café, a garden center, indoor and outdoor garden center, and an event space and performing space. And while this is small dollars, say $10 million-$12 million, it's this kind of texture that's very, very important, we think, to get inserted into the downtowns and make sure that the downtowns always feel vibrant, people are always finding uses and places to go. And then finally, the luxury condo. This is probably the most exciting project we've got in The Woodlands right now. It's designed by Robert Stern.
It's 110 large apartments, ranging from 2,500 sq ft-3,500 sq ft, four penthouses, four townhouses, set in a beautiful landscaped park on the lake. And really, it's designed for the long-term Woodlands resident who's got an 8,000 sq ft-10,000 sq ft home. Their kids have grown up and moved out. They don't want to leave The Woodlands. They're members of Carlton Woods. They've got their doctors. They go to all the five hospitals there, but they are attracted to a lock and leave lifestyle. And in our little bit of pre-leasing and whisper campaign that we've done, we realize this market is very deep, and so we're hoping that this project will be underway by second quarter of 2024. We'll start going into the market before the now in the end of the year on pre-sales.
Then, as David mentioned, sometimes we have retail assets that don't figure in the long-term play for Howard Hughes, and so we dispose of them. And this is a good example. This was the very first retail, strip retail in Grogan's Mill, one of the early, early villages in The Woodlands. But it's not sufficient for us to just let it go and then deteriorate over time. So in this particular instance, we came back and bought this retail center, and now we're going to repopulate it, re-lease it, and bring it back into the 21st century to demonstrate to people that our commitment's long term. We're there to make the entire township viable. We're not actually just focused on one place or another.
And then finally, we have a very robust national campaign now to go across the country and look for corporate tenants who want to relocate to our campuses, whether it's Woodlands or Bridgeland, Summerlin, or Columbia. In this case, we'll do a build-to-suit for virtually anybody, from 50,000 ft to 1,500,000 , and everything in between. And so we're trying to showcase here the flexibility we have, the great locations, the profile, and what we think could be the future of office. Switching to Bridgeland, fastest growing community in Texas, about half the size of The Woodlands, 13,000 acres, 8,000 rooftops, 20,000 residents. We've been focusing up to now on Lakeland Village and Parkland Village, and only just a little bit of neighborhood retail.
But with the Chevron sale and our first HEB grocery release, we now realize we now need to focus on Bridgeland Central, and that's really the focus for the next five years. And it comes in two pieces. The first piece, which is on the right-hand side, is the grocery anchor, retail, and first office building in Bridgeland and inline retail and gas station. And then as we cross the street, we're going to build more retail, a little bit more commercial, a field house sports facility that will. And more denser multifamily, some townhouse work, all backing up against Bridgeland High School, First Houston Baptist Church, and Starling. So this starts to become the hub of the neighborhood in Bridgeland.
This shows the first phase, H-E-B's in the background on the upper right, gas station's on the upper left, drive-through pad, inline retail, and then our first office building, 50,000 sq ft office building, designed to look like it belongs in Hill Country. It's a timber building. It'll be the first timber building in Houston, first timber building for us. It'll be our sales center and our Bridgeland office, and we're getting strong interest for the remaining two floors. So much so, we're starting to think that we might replicate this building across the street. And then finally, similar idea to The Woodlands, a future corporate campus that works around the retention lake.
This one is adjacent to the Chevron piece, and so, as David mentioned, we see Chevron being an accelerator for us, and we think this therefore has a greater chance now and better than ever now that Chevron's announced. Switching to Nevada. Nevada is actually one of our fastest growing downtowns, but in fact, there's three downtowns. So unlike The Woodlands, which has 700 acres scattered about, in Summerlin, we have roughly 700 acres, but it's really in three centers. Summerlin West, which is the farthest out, the last 5,000 acres of Summerlin. Downtown Summerlin, which is anchored by the retail that David spoke about, and our first three office buildings. And then Village 15, which is a brand-new project for us, which we think is gonna complement the other two and come to fruition very quickly.
So Downtown Summerlin, you can see, is in the middle of everything, and you can see both the retail and the Red Rock Resort. So the Red Rock Resort is on the upper left, and then we cross the street into the retail, which flows all the way down to the lower left. As you cross Pavilion Center Drive, we have a lot of land still to go, and that's our focus for the next five years. How do we bring all of Summerlin together? It's been anchored by the Aviators Ballpark and the Las Vegas Knights practice facility, along with our first multifamily Constellation, which is on the upper right, and our second multifamily, Tanager, which is on the lower right. So as we start to think about filling in, we'll fill in with another multifamily on the top, adjacent to Summerlin.
We're going to build a field house, like we discussed in Bridgeland, opposite the Aviators and the Knights facilities, so that the parking serves three different sports complexes. Then below the Aviators, building on the success of, of 1,700, our latest office project, we'll do another office building, our first condo, and a park in what we call the superblock. Then right behind the superblock, two more multifamilies. We think the demand for multifamily is such that we, we almost can't build it too quickly, in Summerlin. Then as we go to the south, Tanager Echo is currently leasing up as the second phase of Tanager, and we've done our first supermarket, anchor development at the southwest, southeast corner of the project, called Sunny Market.
And then finally, going back to the Red Rock Resort, when they first opened, they wanted to keep very much to themselves. And so the connectivity between the Red Rock Resort and our retail was not the nicest pedestrian experience. Post-COVID, the Red Rock Resort has started to get even more active, and it's starting to put more fine dining restaurants in, less food buffets, and playing more table games, less one-armed bandits. And as a result, their customer now wants to come and be part of our retail to the south. So they approached us and said: "What can we do together to try and make that environment continuous from the resort all the way into our retail?" And this is our answer to that, which is the second condominium that we'll do in Summerlin. We'll do it in conjunction with Station Casinos.
Then the superblock, designed by Jeanne Gang, who just finished Kō'ula for us in Hawaii, an office building of roughly 13,000, 13 floors and about 20,000 sq ft plates and a condo project, which in this rendering is two. This will be the Class A destination for all of the Vegas region. Then as we go down to the bottom, Sunny Market, which hasn't been formally announced yet, but it happens to be a national chain with whom we have a very strong relationship in three other markets. And they'll be breaking ground this fall, and it's adjacent to inline retail, which is again showing real strength with banks and convenience retail that'll play off of the supermarket. When we go to Summerlin West, it's a different ballgame.
It looks much farther down the road in terms of activity, but already, based on the success of land sales to home builders in Summerlin West, we're getting demand for another grocery-anchored retail center. So Village 22 is about to go into design, and once that gets built, we believe that multifamily and townhome development will work nicely with that village. That will be along 215. We'll gradually start to work our way south to the intersection of the Summerlin Parkway and 215, where we see the large corporate and commercial campus, and then behind that, more multifamily, walkable neighborhoods stretching back onto the Grand Park. And that's a view of how that might look in the future. This is an easily five to 10, 15-year scenario. And then Village 15 to the south.
Village 15 is interesting to us because it's in the middle of the historic neighborhoods of Summerlin, and it's adjacent to some of our, our highest income neighborhoods, The Summit by Discovery and The Ridges, custom build lots. It's about 60 acres, and we have interesting neighbors around us who are also active in development. So to the north, on the other side of the highway, Roseman University are developing their first medical school to work in conjunction with their dentistry and nursing school. And to the west, Station Casinos again, have acquired a big piece from us years ago and are planning an urban casino. So the way in which we think about Village 15, we start off on the right side, where we did a build-to-suit for Aristocrat up just a few years ago. We're now building Summerlin South Office, which is.
We started on spec, three-story tilt-up, and then as we flip to the other end, we'll do about 30,000 sq ft-40,000 sq ft of retail. It won't be retail that competes in any way with downtown. In other words, it won't be national name brands. It's more like the small food and beverage operators, very walkable, cramped, small space, kind of an industrial feel, which will then connect in a pedestrian-friendly way to the casino across the street. And then in between that gateway retail and the build-to-suit office on the other end, we're working with Sony Pictures on what will be the first major studio in Nevada. This is a picture of Summerlin South office. It's completed. Glazing is just going in. It'll be complete and ready for tenants in the beginning of the new year.
And now that it's up and people can see it and touch it, we're getting a lot of interest. It'll be the best Tilt-up facility in Vegas, but different than the Class A we build in downtown. And then the studio project, which will ultimately be as much as 700,000 sq ft, we're focusing the initial phase on motion picture studios that can handle one picture a year and television studios that can handle two television shows a year. We're learning a lot about the studio business, working with Sony, and we think that as Nevada pass an appropriate legislation to encourage movie making and television shows in Nevada, this is going to be an outstanding success.
And then our Village 15 retail, as I said, think—if you think of the Lab Anti-Mall in Costa Mesa or the Packing House in Anaheim or Sportsmen's Lodge in L.A., small, walkable, very, very, food and beverage-driven, and retail that we think will be a nice complement to everything that will happen in Village 17. Coming to Maryland. So if we think of The Woodlands as being sort of the father of everything that we do in terms of the biggest community, Columbia, perhaps, is the grandfather, 'cause this goes back to Jim Rouse in the late 1960s, and Columbia has long since been built out in terms of single-family houses. We have two major land holdings in Columbia, roughly 110 acres at Gateway.
Gateway is a suburban office, industrial zone area, which Howard County is now rethinking and replanning. For the next five years or more, we'll work with Howard County as to what might be the next iteration of Gateway , but we don't see it as being a development site around the corner. Therefore, our focus really is on Downtown Columbia, the 40 acres that we have in Downtown Columbia. When we think about Downtown Columbia, it really falls into three components. The mall, which was the centerpiece of it, going back to Rouse's day. Under Rouse, they built seven office buildings alongside the mall and the first multifamily alongside the mall. Under Howard Hughes, we came in and focused more on the Merriweather District, which surrounds the Merriweather Post Pavilion, and we have built three office buildings down there and two multifamilies to date.
So that's been our activity for the last five to 10 years. But looking forward to the last year or two and looking forward to the next five years, we're going back to the Lakefront District. The Lakefront District was really what James Rouse envisioned as the town center day one, but it's been relatively dormant for the last 20 years, and so therefore, it's a great opportunity for us. If you can see in the foreground, the building on the lake on the left is the original Rouse headquarters, designed by a very young architect named Frank Gehry, adjacent to the town square, which still today is the center for all July Fourth celebrations. Adjacent to that was the Exhibit Building, one of the first office buildings in Columbia, and to this day, one of the most in-demand buildings because of its location.
And then the red roof building was the Exhibit Building, also designed by Frank Gehry back in the day, in which case we're going to renovate that. And then as you flip, there's some buildings by others, and then you flip to the far right, you see there's a bunch of parking lots. So the waterfront, Lakefront District is mostly a bunch of parking lots behind what were the original Rouse buildings. The way we see it going forward, we're going to start with a major residential neighborhood on Lakefront North. It will comprise five buildings, ultimately, three in phase one. And then as you flip over, we'll renovate the Exhibit Building. We already have tenant interest to go into that building. We'll upgrade the Teachers Building.
Whole Foods have subsequently moved in to the Rouse headquarters, and the medical office building, as David mentioned, is under construction and leasing out very well. And then finally, in a really interesting dynamic with Howard County, we went and proposed to them, "We have an obligation to give you a library site and on which you will build the library. But we think the site that we've been always discussing is perhaps not as good a site as it should be. We'd like you to come right into the heart of the Lakefront District and build a library that will put Howard County on the map nationally." And so we went and spec'd some of the design work to get that done, and we'll show that in a little bit.
So Lakefront North, the idea here is to really create a neighborhood and a new high street called Wincopin, that's very pedestrian-friendly and would run north-south all the way down to the medical office building at the top of the image. Three buildings, all slightly different in architecture, slightly different in the market they're going for. The first building will be five stories, stick construction, more of a smaller, first apartment. Then the second building B, which is on the left, that's kind of the U shape. You get bigger apartments, more amenities, nicer finishes. And then finally, the building in the foreground, the tallest building, it'll be like Riva Row in terms of high-end, multifamily, perhaps with a condo component to it, and it'll be the tallest building in the Lakefront district.
And then the street that we hope to create comes with two parks that will connect down to the waterfront trail, trail system within Columbia. And then finally, the library. The library's been an amazing experience, and it happened super quickly. When we first thought of the idea, we thought, we have to have an idea that really can get people excited. So we went to Thomas Heatherwick in the U.K, and we worked very closely with the head librarian in Howard County. "What does the new library, what do you want it to be?" It wants to be a lot of things. Today's library is a lot more than just about books. We then presented this scheme last summer to the Howard County Executive, and they got so excited.
Next thing we knew, the governor was putting it in his budget, and we now have this project well-funded for all design in 2024. We're working with the county as to how we might help and assist in building it, and it's gonna be a spectacular space. It'll have maker space, kids' space, cafes, meeting space, all-purpose rooms, assembly space, learning English as a second language classroom facilities, and of course, books. And so we're really excited about how this an example of how we can work with our communities, and what can we come up with that's very good for them, will always be good for us. So what's good for the county and the township is always good for Howard Hughes, and the more we can push them to accelerate their ambition, the more we can accelerate ours as well.
As we come to the Maryland Merriweather District, Juniper and Marlow have leased up very successfully, as you've seen. 6101 and 6102 Merriweather also leased successfully. So we're now thinking about the next office building, which will be 6300, and then some workforce housing, both on the residential and the mixed income site, which was going to be the library site, prior to us moving it to the Lakefront District. So 6300 is designed, in our opinion, to be kind of a post-COVID building. Floor plates get smaller, single elevator run, more sustainable materials. The building is clad in brick that's made from reconstituted construction debris.
More open space for tenants on their floor, and then treating the ground and second floor as an amenity for the neighborhood, as well as the building, and giving it more of a residential or a hotel-like feel. You know, this building's in a pre-lease condition right now, and we hope that we can start finding tenants in the next little while because we've found across the portfolio, the flight to quality is still obtains. And then a build-to-suit opportunity, two-acre site can accommodate up to 1.5 million sq ft in multiple building sizes and floor plate sizes. It's just designed to show flexibility, whether it was an educational campus or a corporate campus. And then moving to Hawaii. So 60 acres in downtown Honolulu, right on the ocean.
As David mentioned, six completed buildings, three under construction, and one, Kalae, in pre-sales mode, about to start construction. What we're focused on now is the last remaining development sites within Ward Village. There are four of them, and you can see they're in the beige color, and they're basically at the edges of Ward Village. They're either the west end, the north end, or the east end. So Kalae, at roughly 340 units, is kind of a doppelganger of Victoria Place, which was the most successful selling condo we ever had, 100% sold before we started construction. So Kalae is very much in that mold, same formula, same apartment types, on the opposite side of the park, on the front row.
With a little bit of help in the construction financing world, we'll get this building underway in 2024. And then The Launiu, which we just received final approvals for, designed by Arquitectonica, a little farther, it's on the western edge. It's smaller units, so it's up to just under 500 units in total, and we were able to site it in such a way that it looks past Kalae and still maintains excellent views of Diamond Head. And then the parks, which are under construction right now, on either side of Auahi Street, you go to the North Park and the South Park, with a new pedestrian bridge linking to the marina on the other side of Ala Moana Boulevard. And at the top of this image is the last remaining site, and we call it N West or Mahana.
The difference between N West and all the other sites, all the other sites are designed to go to the maximum height of 400 ft, and then we push as much density as close to the ocean as possible. So at the end of the day, when you've done that effectively against all the other sites, you have a certain amount of density left over, and there's not enough density on N West to get up to the 400 ft in height. It's a smaller building, only 340 units, but it's modeled after Launiu in terms of unit size, and we paid particular attention to really emphasizing the views across the park, across the marina to the ocean.
We've therefore designed it as if it's got first-row revenue capabilities and luxury finishes, but it's going to have its own place within the park. And then the final, the highest end product we've ever conceived of in Hawaii. We always felt that D and E would be the last sites to go. They're the best sites, the best views. And so we, again, taking a playbook out of The Woodlands, we brought Robert Stern in to design these two buildings. D, which is on the left, is, it's 248 units, larger units, more luxury finish. And then E, which is on the right, even bigger units again, only 148 units, separate amenities, separate parking, separate entrance.
I think without a doubt, E is aiming to be the finest condominium in Hawaii. These projects are now going through the final planning approval, and we would hope to be in pre-sales at some time mid- to late 2024. Switching to Arizona, Teravalis, our newest project. When you talk 37,000 acres and there's nothing there, it's hard to know exactly what we're going to do 50 years from now. So we're in the same position that James Rouse was 50 years ago, but now we have to think of it in different terms. We have to think in terms of power grid, connectivity, water usage, of course. There's a lot of challenges in today's environment against multi-use and master plan communities that we didn't face before.
But when we think of just the next five years, we focus in on Floreo, which is only 3,000 acres down on the, on the lower right. As David mentioned, we've got, we're papered already for the first 500 lots. We have some commercial land in Floreo in the pink and also the blue box to the top, which is more of an industrial capability. And as we zero in on that first 100 acres, the 500 lots are in, are in the middle of phase III. We're working on the, on the water campus and the substation on the far left, the, the, retaining lake on the right, and then we have three commercial sites.
We currently have interest from a school, a supermarket, and a healthcare provider, along with what would be, for us, a very dense and large community center. Then in 33, we eventually start to bring in retail. So unlike, say, Bridgeland, where we waited for a lot of rooftops to get built before we started to think about the commercial town, here we're accelerating the town center earlier in the process, and which we hope will also accelerate the land sales to builders. And that's a view of the community center. Then finally, coming to New York, our labor of love, 250 Water Street. It finally looks like it's coming to the end of the approval program.
Our opponents at the Seaport Coalition finally found an amenable judge who ruled that the Landmarks Commission did not rule properly in giving us the approvals to proceed. We then appealed that to the appellate division. We won that appeal 5-0. They then went back to the appellate division and asked to reopen the case or appeal it to the state appeals court. They lost that again, 5-0. So they really only have one option left now, which is to go to the appeals court, and we don't believe that they will overrule an appellate division five unanimous decision. With that, the project will be entitled and ready to go. We're finishing remediation today. When we walk by the site, you'll see lots of work going on.
But unfortunately, the 421-a program, which we qualified for, now is in limbo and has expired, and therefore, extremely difficult for us to be able to get construction financing based on a requirement to finish the building by June of 2026. So we're working with-- and we're stuck in the same boat as a lot of developers who qualified for 421-a. And so we'll be working with both EDC and REBNY, the Real Estate Board of New York, to see if there's some way in which we can bring back the 421-a program, extend it, or maybe come up with a synthetic version of it. So those talks are continuing. It's a 150,000 sq ft base, and interestingly enough, we're starting to get action on the base.
I think it's consistent with what we see in the Seaport in general. The office space is so unique. In this case, it's brand-new construction, very high floor to floor heights, open space terrace, operable windows. And so we think that we're going to eventually get something and land in 2024, 2025, and this is a view of the office lobby. So, more to come. There's always going to be demand for housing in New York, and this project now, I think, is finally gonna come to fruition. So if they say patience is a virtue, we certainly exercised as much patience as possible on this project, and so therefore, we consider ourselves to be a very virtuous developer. And with that, I'm going to hand it off to Carlos, who's going to talk about our ESG approach.
Thank you, Jay. Well, I did that on purpose, to break the ice, to start my presentation. I hope, I hope it's off. Apologies for that. Thank you, everybody, for being here. I'm really happy to see you. Really happy to connect with those of you that I haven't met, have this opportunity to talk to you here in our home turf, in the Seaport. As Jay said, I'm going to walk you through HH Communities, which is what we, what we call ESG inside of Howard Hughes. After that, we'll talk about GAAP and balance sheet, and then we'll close it out with NAV before I hand it over to David, because I know that you're all eager to get to Q&A. I can see you writing, so I know the questions will be coming. So what is HH Communities?
Again, well, HH Communities is what we call ESG inside of Howard Hughes. And for us, we don't just use a different name because we want to be different. We call it that because everything we do is focused on our communities, and it's not new to us. This is not. We didn't start thinking about this when it became the topic of the day, and compliance was coming and rules were coming out. No, we've always been thinking about this, and it comes all from the legacy of our founders that were really focused on these topics that have now gotten the moniker of ESG. In reality, what we do is take the same values that we inherited from them, take everything that we've learned along the way, and deploy it to build great communities where people want to live.
I think that when we think about ESG, a lot of people, and I understand why, we can be turned off by the topic because it sounds compliance, it's more expense, et cetera, et cetera. For us, it's actually an opportunity to increase our competitive advantage and to increase the value of our portfolio. Given that we're long-term holders, that we're building communities, we get to think about it with the privilege of 10, 20, 30, 40, 50 years down the road and deploy everything to accrue to the value of our portfolio. Now, when you make those decisions, a happy by-product is that you get recognized, but in reality, this really is a by-product. What matters most is we're actually delivering to the bottom line. Why do I say that? Well, you can see it over there in our stat.
We met our target for lowering energy use that we supposed to meet by 2027. We already met it. What does that mean? Well, for our residents, it means a lower bill. They like that. So in addition to living in an amazing community that has access to nature, et cetera, and all of those great things that David and Jay have been talking about, it's actually cheaper for them, at least when it comes to energy, right? So it starts to matter. When you think about the office tenant that has triple net lease, we're going to pass through the expenses. That matters to the bottom line as well. So again, if we do it right, we do it thinking about accruing value to the portfolio, it actually can make financial sense.
We have the opportunity to do it again because we own these communities, and we're thinking about it long term. Topic of our generation, right? Water conservation. We hear about water availability a lot, but I don't think that we hear about water management as much as we should, when in reality, that is perhaps even more important than water availability. And why do I say that? Because there's a lot that you can do with proper water management. I'll give you two things that I would like you to take from this slide. Here on the top left, in Summerlin, and this is us inside of Howard Hughes in Summerlin. Since 2018, we have added population, we added commercial, we added a baseball stadium, and water consumption has declined.
Why is that? It's proper water management. It didn't start raining more all of a sudden. It hasn't rained a lot more since between 2018 and now. It's just much better water management. That's why we feel very confident that in Teravalis, we can achieve that current goal. We really mean current. That's in really short term, to get to 95 gallons per capita, significantly exceeding the mean of the state of Arizona. Right? We can do it, we've done it, we will do it. It's all about water management. It's all about having that focus on water management in this case. Yes, how can we? One of the reasons why we can do that is because we're consistent. We think about these values internally. We deploy these values internally as well. They're part of our fabric.
I can honestly tell you, and I, I hope you don't think me sentimental, but not a day goes by that I don't look at those founders and I ask myself, "Am I living up to their expectations?" In all ways, not just in this one, in all of them. I'm not. Sorry. I'm not going to tell you what my answer tends to be. All right. Moving on to corporate and balance sheet. Okay, let's just get to the numbers. You saw this last year. This is our G&A trend. We started. When we began our transformation plan in 2019, we had a high-water mark of $120 million. Now, in 2022, we are at around $76 million, well within our guidance between $80 million-$85 million. We're stabilizing there. How do we do that?
Again, this is all the focus, all the streamlining of our business that you've seen before. And this also reflects how we can do things like our ESG without adding significant load to the platform. Our platform is becoming efficient. As we grow our balance sheet and we add all of these amazing amenities that Jay described as, and they'll start to come online, our G&A has stabilized at less than 1% of our total assets. More importantly, and as a point of reference, the savings that we've had on G&A are equivalent to the equity for a $98 million development at 55% financing. So it's real savings that have real impact, and that's the first element of—that we'll get into of our value creation cycle, with the second one being our debt.
So how's our debt? Well, a couple of highlights here. In 2022, we took advantage of what, in hindsight, was perhaps the last opportunity to see low rates in the single digits, in the very low single digits that, I don't know, maybe a decade, maybe a generation, could be surprised, but probably not. Probably going to take a while to see that, if ever again. And we closed on $2 billion of permanent financings, including an impressive $1 billion just in Q4 of 2022. We were able to also finance our new construction and our horizontal development. And you can say, "Well, you just said that those were good days, so okay, big deal.
What have you done in 2023?" Well, in 2023, we've continued our streak with closing on condominium construction, closing on multifamily, and you might say, "Well, we know those are very strong." Okay, but we also closed an office. That Village 15, Summerlin South office, we were also able to close on that. Again, another example, office is not dead. Office is healthy if you have the right product in the right location, backed by the right sponsor. And now, let's look very quickly at maturities on this side. Happy to report that 2022 maturity will be handled imminently. The vast majority of that will be refinanced before the end of this quarter, and the rest of that will be refinanced before the end of the year, in Q4.
That $130 million in 2024, $100 million of that is Victoria Place. So for those of you who are not familiar, we put a financing on our condo construction. When we do the bulk closing, meaning when we close on all of the units of that condo, we pay off the debt. So the way to look at that 2024 is that $100 million of that is handled already. It will be paid off when we close on the sales of the condos next year. With that in mind, 2023 maturity is handled, 2024 maturity is handled. We have a very comfortable maturity schedule ahead of us. Rates have been unpredictable, perhaps erratic, whatever you want to call them, right? So our hedging strategy has become only more important.
We've always been very disciplined in hedging, but it's only become more important as of late. And currently, we have $1.6 billion in total debt swaps, and you see how they're set to expire there. So wow, it looked like a big flashing red light in 2023, right? But when we start peeling off the layers a little bit, the reality is that $368 million of that maturity is from construction loans. And as you know, that construction loan will either get paid off, in the case of the condos, or will get refinanced into permanent loan, at which point we will make a decision of what type of hedge to put on top of it if it's not fixed debt, right?
So there's not so much of a risk in this $368 million because it would just be refinanced in the natural course of every single construction loan. So what we have is the $615 million. The $615 million, we have been analyzing the different options for that for quite some time, and we're ready, and we'll very soon deploy the alternative strategy for that $615 million. So while it looks like a big number, like it's going to open up a lot of risk, when you peel it back, it's really not. Because again, the $368 million, our construction, it will get refinanced into perm, and at that point, we'll decide. And the $615 million, most likely by the time we get to Q4, you're gonna be able to see what we did with that.
Very well, and this is our value creation cycle at work. Very important point here. Very important point. You can barely see, I'm sure, that gray line that says condo profit. The problem is that the reason why you can barely see it is because, again, we didn't have bulk closings this year. But as you saw before in the slides that David and Jay presented, we're going to have Victoria Place bulk closing in 2024, and then we're gonna have two bulk closings in 2025. So the contribution of condo profit when we meet next year, and hopefully the year after that, is going to be much more significant. And why does that matter? Well, this is why it matters. Right now, our operating assets NOI, this $241 million, is sufficient to cover our interest expense and the cash G&A.
So yes, our NOI keeps the engine running. Our profit from MPC and for condos funds all of those assets that Jay presented to you, and that's why it matters. NOI keeps us going, land sales and condo sales, funds all of the future developments. Those future developments accrue to the value of our portfolio, and we'll later show you exactly how. NAV. Takeaway from this slide, we didn't change the methodology. We're still doing the sum of the parts. We use the same sources. We use the same assumptions. We simply updated them for the passage of time. And when you get access to this document in the appendix, you'll be able to see every single assumption that we use. Nothing changed in the way we did it. We simply updated the assumptions.
We're ending at 129, which is a 63% discount to NAV. So what, what does that mean, though? Well, we started at 170 the last time we did it in December 2021. It was a 62% discount, and we're at 129. So yes, it's, it's, it's a drop. And I'm sure you're you won't be surprised if, if I say that the main culprit there is cap rates. And so let's, let's get to it to show you how cap rates had an impact here. Our office assets were the most impacted by cap rates, going from 6.9 to 11.2, which is really the driver of that decrease. We have something else about NOI there. We lost NOI at the sale of 110 North Wacker. It's going to be replaced with leases that have already been signed.
So really, the main driver in office is cap rates. Same in retail. In retail, it's entirely cap rates. Multifamily NOI is actually a really healthy increase, but it gets washed away by cap rates. So cap rates is the name of the story when it comes to the operating assets and largely, as we'll see, when it comes to NAV. Because as you can see here in MPC, NAV is very stable. It really didn't change. And the most important thing here to say, again, David said at first, everybody thought we weren't going. Nobody was gonna buy a home, nobody was gonna sell land, nobody's office was not gonna exist. Well, in MPC, throughout this period, price per acre has increased 15%. It's a very, very healthy increase, which helped maintain NAV stable throughout this period. And I love this slide.
This is, this is always my favorite slide in every deck when it comes up, because this doesn't include Teravalis, by the way, so it has nothing of the future value Teravalis is going to bring. But in 2017, our land bank was worth $3.7 billion. We've sold $1.7 billion, and instead of ending up with $2 billion on the other side, we have $3.9 billion. That is the power of the self-funding mechanism. That is the power of the master plan. That is the power of deploying these creative, well-curated amenities, be it retail, access to nature, great office, et cetera. That we start with $3.7 billion, we sell almost half of that, and what's left is even more valuable.
And again, r eally exciting to me to talk to you about this next year, the year after, and subsequent years when Teravalis starts to show up here as well. Doesn't have it. Doesn't have it yet. Our condo business and the impact on NAV, as I'm sure you can gather, it's very, it's a very strong and vibrant business, and it really didn't change the NAV. In fact, we started at $27, in reality, we ended at $28. It ended up at $24 inside the segment, but it's only because it sent $4 to corporate. That's inside baseball segment reporting, et cetera. But in reality, it stayed from $27 to $28. Really strong, and I don't think I need to say much more because David already covered it, and then Jay covered it as well.
I think you have a good idea of how strong our condominium business in Hawaii is. To wrap it up, the Seaport, same as last year, we're carrying at a cost. We didn't make any changes, we didn't add any assumptions. Then corporate, this is the entire platform, not much more to say there as well. To wrap it up, NAV is largely a story of cap rates and largely a story of cap rates in office. With that, I'm going to hand it over to David for closing remarks and look forward to your questions. Thank you so much.
Thanks, Carlos. A lot of information. All this will be available afterwards, as well as a recording of the presentation. I think before we open it up for Q&A, and we'll have some mics around the room, so raise your hand, and Eric and Todd will be able to get to you. Look, from my perspective, as I sit back and I think about our business and the results that we've experienced over the past year and what I expect for the year going forward, it comes down to the fact that we have some of the most sought-after communities in the country. Places where people want to live, where they want to work, where they want to play, learn, discover, pray, invest in their family. As a result, our residential land values have been nothing short of resilient.
As a result, office tenants are seeking out our properties, moving into our communities, leaving higher tax, higher crime, coastal cities, seeking the quality of life for both their employees and themselves. That's true in The Woodlands, where we've leased up an incredible amount of office space. That's true in Summerlin, where we've seen the mass exodus from the West Coast come in. That's true in Hawaii, where we're continuing to sell condos, not just to local residents of the islands, but to the U.S. and Tokyo. That resilience and the quality of our communities has translated into great results, results that I think have outperformed our expectations and will continue to do so going forward. So I'll pause there and open it up to the floor for questions. Alex?
Thank you, David and team. Alex Goldfarb, Piper Sandler. Just going back just a few slides ago, you ascribed a value of $1 billion to the Seaport, $20 a share, and looking on a preceding page, Ward Village is sort of valued not too dissimilar. You know, you guys recently hosted us out in Hawaii. We saw Ward Village. We can see the success. You know, the condos sell out as soon as the flyer hits the, you know, palm trees out there, the buildings sell out. The Seaport has a very-
You make it sound so easy, Alex.
It is. The Seaport, David, you know, has been a challenge from day one. It's hard to believe that this is worth almost as much as Ward Village, especially given the cash, cash profitability challenges. Maybe you could just walk a little bit more through how this project, you guys are ascribing $1 billion of value on par with Ward Village, which I would think would be worth far more.
Yeah, yeah, Alex, it really comes down to the methodology and the sum of the parts methodology we've used. In Ward Village, we've done a discounted cash flow of future sellout dates of those condos and ascribed some value for those condos that haven't been sold yet, and they're discounted back to today, and the details are kept within the appendix. In the Seaport, two years ago, two and a half years ago, when we did our first sum of the parts NAV, we used book value approach. Given the uncertain future, we described book value, we did the exact same thing here. We're not saying that this methodology is the only one, the perfect one, the one that every investor should use.
This is illustrative, and I think a lot of folks in this room are incredibly smart and will take their own analysis to how they want to view our business. On that same token, while you may not use book value for the way you look at the Seaport, I don't think I'm going to use a 12 cap when I look at our office portfolio and the quality of it. But if the third-party provider we've used for two and a half years says it's a 12 cap, we'll use it. I don't believe it. I think it's worth a lot more than that, especially given the fact that in Houston, we're signing $32-$35 net rates and leased up a building from 0% to 91%, 600,000 sq ft building in a year.
To me, that's a much more valuable building than a 12 cap. So look, this is illustrative. The assumptions are driven around third parties. We've used the same methodology that we've used every year and haven't changed it, and that's the same methodology you see in the slides that we just reviewed.
David, you're saying that. Just to be clear, you're saying that these NAVs are based on a 12 cap for your office portfolio-wide?
I think it was 11.2-
Okay.
-ish.
Wow!
Yep.
Wow. Okay.
So all the assumptions are in there, and I don't want to spend two hours going through each one of them. I think that everyone would better spend when they get home tonight.
Thanks, Anthony Paolone, JPMorgan. David, you talked about earlier the relationship with owning the competing multifamily and why you like keeping the commercial and that competitive advantage. But can you maybe talk a bit more about that same idea as it relates to building, like an MOB or even a grocery-anchored shopping center, like just the. You said you wouldn't wanna own the hotels and the self-
Mm-hmm.
Storage. So just some of the decisions around that on other property types as to why keep all that stuff?
Yeah, absolutely. It's a great question, Tony, and we spent a lot of time talking about this, I think about 3 years ago, as we came out of the transformation plan. Where we used the downturn to really do an analysis of how our assets performed against their competing markets. And what we saw when we looked at office, where people are making a five-, seven-, or 10-year decision, our office properties in The Woodlands, for example, meaningfully outperformed Houston. And we attribute a good portion of that outperformance to our control of the majority of the Class A space. That there weren't four developers building a building at the exact wrong moment in time, like there was in Westchase or Energy Corridor or other submarkets of Houston.
There's only one building under construction, and if you wanted to lease it, you could talk to Howard or Hughes. As a result, we saw better performance, our rates were stickier, our occupancy was stickier. That same analysis really held true to multifamily. You know, office, if you're making a 10-year decision, you're not gonna trade out for $1 a foot to be in a terrible submarket for 10 years. You want a great building with great amenities, access to outdoor space, fresh air. It's a 10-year decision. You'll pay a little bit more to be in the right spot. If you're making a one-year decision for where you're gonna live, you want it close to where you work. You want it close to a great grocer. You want a connection to the outdoor and activities. You'll pay a little more for the right location.
When we looked at hotels, and this is what drove our decision to sell the hotels, that didn't hold. Our performance of our hotels looked, smelled, and felt like they did in their surrounding markets. And I think that's largely because it's a one-night decision. And when you're making that decision for one night on a business trip or two nights on a business trip, and it's $40 cheaper down the street, chances are we all work for a company whose expense policy says you're staying down the street. So we had to move our rates, and our occupancy looked like the overall market, and there was no outperformance or no benefit of having a controlling share of the space in that, in that subsector. When it came to retail, the results were bifurcated.
The downtown retail, the Downtown Summerlin, the Ward Village, if you will, kind of the heart of the city, we saw a real benefit in controlling that experience, and a benefit to the retailers that wanted to come in there in the good times and bad, to be at the corner of Main and Main, and those assets outperformed. The neighborhood grocery stores, the one-off strip centers, the Ulta, Total Wines, there was no benefit. If it was a little cheaper ten minutes down the street, that's where the tenants went to. So those are the assets we moved on to. Moved on from, I should say, and, and done more of a build-to-sell model than build-to-hold. Does that answer your question, Tony?
It did.
Great.
Thank you. Peter Abramowitz with Jefferies. Just wanted to go back to the office cap rates, 'cause I would agree, I think it was a little surprising to see the 11% number you're using on there.
No one was more surprised than me.
Any transactions in your markets that kind of back that up or any color on that? And then seeing that number, I guess, you know, even at pretty good economics, you know, high single digits on your yields, doesn't seem like it would justify doing any more office. I guess, how does that impact kind of your thoughts on future office development?
Yeah, i t's a great question. Are there market transactions that would justify this? No, there's been a dearth of transactions other than the assets that I say are non-competitive, the foreclosure in the Energy Corridor, the 20% leased building that the bank took back and sold. I'm not so sure that those are good comps. I'm not even sure what the cap rates are on those, if they even had a cap rate, 'cause they're negative cash flow.
So it's tough to say that that's a good comp, other than the third-party research sticks their finger up in the air and says, "It's probably about here." Clearly, if the yields on assets are higher, our cost of debt is higher, our cost of capital is higher, the returns we need to achieve on development to justify that investment has got to be higher as well. We have to be paid for the risk that we're taking in new developments. And therefore, on the deals going forward, I think you'll see higher yields than what you've seen most recently. And why I think, you know, as Jay mentioned in his remarks, we see a good roadmap right now for multifamily.
And then if we're gonna do some office, it's probably gonna be more in the build-to-suit mode, where you can de-risk the lease up and therefore accept a return that's closer to cap rates than at a premium.
Thanks. And then just one on the fourth floor space that you have here. Could you just comment on the activity that you're seeing? How active is it? What type of tenants are you looking at? And do you face any pushback from tenants, just location-based and relative to mass transit?
No, I would say the, I'll take the last question first. The pushback relative to mass transit has never been the issue in trying to lease that space. Fulton Street being two blocks away, and then only a block south, having basically the Grand Central, the ferry system, which has expanded pretty meaningfully over the past five years, has actually accrued to our benefit. The pushback we have is on the rate. You know, we have Nike and ESPN that are at around triple digits, and this is a glass jewel box on the water with 360 views of the Statue of Liberty and the Brooklyn Bridge. And like, this space alone, there's not a lot of spaces in New York that recreate this, especially with this amenity base immediately around you, with the Tin Building, the rooftop concerts.
So I think you know, we've been to the altar three times with tenants, trading lease documents, and for different reasons, they blew up. You know, we're back in the market now. We're working with a prospect and hopefully find some more.
Okay, and I guess just types of tenants and time.
So the type of tenants vary. I would say largely entertainment-focused. You know, ESPN clearly broadcasting 10-12 hours a day between the podcast, live television, and radio. Nike's creative design studio. We don't see a lot of accounting firms come down and tour. Not that there's anything wrong with accountants. I love you, Carlos.
David, thank you very much for the presentation.
Of course.
It's always exciting to see, Howard Hughes, and especially in New York. Alex Majeed, Majeed Family Office. I wanted to follow up. My question about public-private partnerships. There is any chance, in New York City, do you believe it might. I know you had some successes. Do you think there is a future, for that one, for your company in New York? And my second question on the Tin Building. Do you still consider it as a, important, I wouldn't say key asset, important asset to your company? Thank you very much.
Thank you for your question. You know, maybe if you want to talk about 250 Water briefly at a high level.
Well, that is sort of a public-private process. We're here on a ground lease from EDC, so we're already in a public-private situation with the city of New York on the Seaport in general. The idea that we could extend that to 250 Water is a possibility that we've had some discussions on. And similarly, there's a site right here, the New Market site, which we'd love to see developed. It's owned by EDC. That's a possibility for a public-private partnership. In Columbia, the library we're talking about is a public-private partnership, and in Woodlands, we're talking to the township about a public-private partnership on the performing arts center. So, we would always consider them if they're appropriate to our needs.
Good. And as far as the Tin Building goes, I think it's an integral part of the Seaport. And as long as the Seaport is important to Howard Hughes, the Tin Building is clearly gonna be very important. It's the gateway and the connective tissue between the historic district and the pier, and has been a real catalyst of drawing folks down here, which we value highly. He's coming.
Hi, Vero Capital with the family office. Can you go into some more detail on your transition to a holding company? And then maybe while you're at it, throw in, I didn't see him here, but, Bill Ackman, Pershing Square's involvement, with management, and what maybe you guys are looking forward to, and he is as well?
Yeah, sure. At the very beginning of the presentation, I talked about our recent press release on forming the holding company. And to date, we've moved our investment in Jean-Georges into HHH, where all of our legacy real estate assets still sit within a subsidiary of HHH, still called HHC. We're in process of getting approval from Major League Baseball to move our ownership in the Minor League Baseball team, the Las Vegas Aviators, into HHH as well. And that will separate our non-real estate assets from our real estate assets, and importantly, our non-real estate assets' cash flows away from our traditional real estate debt covenants, and just make it easier on a reporting standpoint from that perspective. There's really not much else to it there. As far as Pershing Square, they're a meaningful owner of the company.
I think you've seen it in our public filings, how many shares they own. They've been vocal that their strong supporters see value and continue to accumulate more shares. Bill is a thoughtful, engaged, and chairman that has strong views, and I think all of our directors do, and they're all very much engaged in helping me, as a first-time CEO, make some decisions that are gonna impact our shareholders in the long term for Howard Hughes. So, I value the relationship I have with all of our directors, and Bill in particular, and he's been nothing more than a thoughtful leader.
Excellent. I appreciate it.
Thank you.
David, it's, Alex. Just following up on Ward Village, if you could just go through. I think you said the projects, especially the Stern projects that are sort of the, finale, are through 2023, or, sorry, 2030. Does that mean Ward Village is done in 2030, or is there future development potential beyond that, just given how successful it's been for the company?
Yes. Under our existing entitlements and under our existing agreements, we will use up all of our 9.2 million sq ft through those four towers, the N and West D and E. That's not to say that we couldn't do more, because we have an entire area west of Ward Avenue, as you look at the property on the west side that we haven't touched, and there's room there for probably a couple towers maybe. And a couple of sites within the heart of Ward Village, whether it's Ward Entertainment or the South Shore Market, that haven't been touched. We don't have the entitlements to go and do that, and we'd have to go get approval.
But clearly, given the success we've had, the economic benefit, and the returns we've driven from Ward Village, we are constantly looking for ways to keep that machine going beyond 2030.
Thanks. Eric Borden from BMO. Just wanna touch on Teravalis for a second, and maybe if you could talk about a little bit about the timing of the first batch of deliveries. And then I appreciate the slide on the water conservation and your target to get down to the lower numbers. But could you maybe talk about what some of the surrounding developments are doing in terms of water conservation? Thanks.
So to hit all those questions, let's see. We've graded those lots. We're under LOI. We're moving a contract on our first 500 lots. We should expect to sell those by the end of the year. What we're doing in terms of water conservation, I think, is at the absolute forefront of what anybody is doing in Phoenix. Instituting a gray water management system for the entirety of Teravalis and Floreo, instituting low-flow fixtures, limiting size of pools, requiring covers. These are things that very few developers require or want. In Las Vegas and in Nevada, they've had strict legislation on the size of pools, on how what plant material you can use, the type of fixtures you install in your home, and we've seen the results.
And that's stuff that we've helped pioneer with the Southern Nevada Water Authority. We're trying to work closely with the governor and for the, all the legislature in the state of Arizona to try to enact those same strict regulations that would, kind of have all of the developers in Arizona kind of play by our rules, if you will. Rules that we're gonna do regardless of whether or not it's legislated, because it's the right thing to do, because we're there for 50 years. We're not building 500 lots, selling them, and moving on to the next state. Our motivations are slightly different, but we think that the right thing to do is put in smart water management. I don't think there's a shortage of water, and I think the headlines say that there's a shortage of water.
There's really a shortage of smart water management, because if it's managed appropriately, there's enough of that natural resource to last for generations more.
Thanks, David. You know, it's interesting that the volatility to your NAV has come from, theoretically, the least volatile cash flow stream. And so I guess my question is, you know, does that prompt any thoughts around, you know, perhaps some more stock buyback? You've done that in the past. Or going back to the trough and thinking about anything non-core, you know. Or, you know, putting yourself in our seats, you know, what in your mind do you think are the most exciting things that could act as a catalyst for the stock in the near term?
Look, I think the first question there is how do we think about our capital allocation strategy, and I don't think it changes. It's where are we gonna generate the highest risk-adjusted returns? Is that building the next multifamily at a number and well in excess of cap rates, or is it buying back our shares at still a meaningful discount? Knowing that, you know, for each dollar we invest in development, there's fewer dollars on a leverage-neutral basis that can go into buying back our shares. So taking into account the overall leverage of the company, that doesn't change. We evaluate that every day, whether it's develop or buyback, depending on those dollars of free cash flow. In terms of what are the near-term catalysts, look, we don't have a patent. I'm not a technology company.
I don't have a next-quarter announcement that I'm sitting on that I can't wait to tell you. You know, we sold 77 acres to Chevron to build a commercial campus in one of our communities, and I don't think half of anybody noticed. Again, we're a long-term story. We're about creating long-term value for our shareholders, not next quarter, but next year and five years, and that's our mindset. We're not making decisions because next quarter's earnings are gonna have a great bullet point at the top of the release. I think that can be detrimental. While beneficial short term, detrimental long term. The really important things we need to do, we need to execute on our land sales. We need to continue to lease up our office.
We need to get that development pipeline moving 'cause we're at 98% leased across all of our multifamily in The Woodlands at double-digit, same-store growth. That clearly says there's more demand. We need to stabilize the Seaport, lease this office space and stabilize the Tin Building. And if we continue to do those things, we're gonna create a lot of value for our shareholders, outsized to what I think any public real estate company can do without, you know, the major catalyst announcement in 60 days that's gonna move the earth. All right. I think that wraps up the Q&A. Thank you again all for coming. Those of you who are here in person, everybody online, we appreciate the interest. If there's anything you didn't get to ask that you would like to, we're always available by phone or email. Please don't be shy.
Eric, if you wouldn't mind sharing the logistics for the property tour so that we can break up into smaller groups and try and make this as seamless as possible.
All right. We've got a lot of people to move around the Seaport, so we have five different tour group, tour groups that are gonna go in different directions. In the back of this room, there are some colors on the wall, and you will find on the back of your name tag, a color. So if you can assemble in that area, that would be great. You can leave your things here. This will be a secure space. It's hot outside. You can leave your jackets, things like that. We will come back here after the tour, and then if you're joining us in Pearl Alley downstairs for the reception, there will also be an area for you to check your bags and things as well. So, we'll see everybody on the other side.