Honolulu-based senior living facility Kahala Nui recently became the owner of the 6.5-acre property on which it sits at 4389 Malia Street. The land was previously owned by The Diocese of Honolulu, which successfully closed on the land sale for $90 million last week.
“The purchase eliminates the uncertainty of what would have happened as Kahala Nui approached the end of the 60-year ground lease in 2063,” said Kahala Nui President and CEO Craig Courts. “This includes the unknown financial impact on the residents that live there, the unknown lease terms and costs if successful in negotiating a new or extended lease, and the risk that residents would have to move out at the end of the ground lease.
“With certainty, Kahala Nui can focus its efforts on how it can have a greater impact on kupuna in the broader community.”
Courts noted that the two “entities are very supportive of each other and have been good neighbors to each other over the years.”
Kahala Nui, a not-for-profit corporation, provides independent and assisted living, as well as skilled-nursing and memory support. Since 2005, the organization has partnered with the next-door Mary, Star of the Sea School Hawaii, a private Catholic elementary and middle school, for various events and fundraising efforts.
Under the agreement, Mary, Star of the Sea School and church will continue its operations with access to parking stalls, sports fields and pre-existing easements.
“We are grateful for our nearly two decades of partnership with Kahala Nui, and this transaction represents a mutually beneficial outcome for both organizations,” said Larry Silva, Bishop of the Diocese of Honolulu, in a statement. “The proceeds from this sale will help strengthen the financial foundation of the Diocese and provide ongoing support for our parishes, schools, clergy and the wider Catholic community.”
A spokeswoman told ASD, “The Diocese has created a perpetual endowment for Mary Star of the Sea Parish, which is expected to generate the same or more annual income than the parish received from its share of the lease rents.” Other endowments for seminarians, deacons and retired clergy have also been created. For Hawaii students in need of financial aid at Catholic schools, monies will also be directed to the Augustine Educational Foundation, a nonprofit under the Diocese of Honolulu.
The Diocese is also raising funds for much-needed renovations at the historic Cathedral Basilica of Our Lady of Peace, which serves as an operating parish at Fort Street Mall in Downtown Honolulu. “The Diocese is earmarking a portion of the proceeds of the Kahala Nui sale for the Cathedral Renewal project,” the spokeswoman said. “Much has been done. There is much remaining to do.”
Kelsey Kukaua Medeiros can be reached at kelsey@alohastatedaily.com.
