Friday, October 24, 2003

Buyer found for two
medical office buildings

A Tennessee real estate trust that specializes in medical properties has paid $20.6 million to buy two Oahu buildings that house doctors' offices.

They are the 103,000-square-foot medical office building on the campus of the Kapiolani Medical Center for Women and Children and the 81,000-square-foot Pali Momi Medical Office Building attached to the Kapiolani Medical Center at Pali Momi in Aiea.

The buyer, Healthcare Realty Trust Inc., said the buildings are fully leased.

Hawaii Pacific Health, parent of the medical centers and seller of the buildings, retains the fee title to the land. The organization said in May that it would sell the buildings if it could find the right buyer.

Declining revenues and higher costs to provide medical services leave Kapiolani and Pali Momi with insufficient capital to meet future needs, Larry O'Brien, chief executive officer of the two facilities, said when the buildings went on the market four months ago.

About five of the 11 stories in the Kapiolani Medical Center office structure are occupied by the hospital. Kapiolani is a minor tenant in the Pali Momi building.


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