In 1949, Alexander & Baldwin formed Kahului Development Co., Ltd. (KDCo) (the predecessor of A&B Properties, Inc.) to serve as a development arm of the agricultural-based entity. This timing coincided with the sugar company’s plan to close down some plantation camps. To provide for housing for its sugar workers, as well as meet post-WWII housing demand, KDCo announced a new residential development in Central Maui, in the area we now refer to as Kahului.
“Dream City,” a planned residential community was launched and over the next couple decades 3,500+ fee simple homes were offered for sale in 14-increments of the new development. Kahului quickly became one of the first and most successful planned towns west of the Rockies – and the first in Hawai‘i. The first homes were built along each side of Puʻunene Avenue. The average price of these homes was $7,250 each. At its peak, it was reported, houses and lots were being sold every two minutes.