Amid the sea of luxury residential condominiums rising in Honolulu, a developer from Japan is planning a more moderate-priced project near the Hawai'i Convention Center.

An affiliate of Osaka-based Tatsumi Group on Wednesday bought a vacant half-acre lot at 1700 Kalakaua Ave. and plans to develop a 17-story condo with 120 units.

Prices are expected to start at about $300,000 for a studio of roughly 425 square feet, and $450,000 for a one-bedroom unit of about 690 square feet, excluding lanai.

For new condos on O'ahu, that's relatively moderate compared with most projects under construction with average prices nearer to $600,000.

"Everybody's building high-end, high-end, high-end," said Jeannie Fogarty, a broker representing Tatsumi. "The project is being targeted at the local market, and prices will be reasonable for first-time buyers. It won't have a pool orzJacuzzi. Just the basics."

Some of the 120 units will be set aside for sale or rental below typical prices in the building under an affordable-housing agreement being negotiated with the city, according to Fogarty, who said details still need to be worked out.

The project would be the first in Hawai'i for Tatsumi, a diversified family business in Japan with operations in real estate, restaurants and tourism. Tatsumi also owns a boutique hotel in Laguna Beach, Calif., and a residential building in New York, Fogarty said.

Fogarty said Takao Shinomiya, Tatsumi's president, was interested in buying Hawai'i real estate that was already generating income, such as an office building or hotel, but saw the opportunity to build moderate residential condos at 1700 Kalakaua.

The former owner of the site, a subsidiary of Taiwan-based Fu Tsu Construction Co. Ltd., had developed the plans for the building that were included in the sale to Tatsumi for an undisclosed price.

Construction is anticipated to start as early as next summer, with completion in summer 2007. Unit sales are expected to begin in April.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.