Nonprofit to sell rental complex
Thirty-six years after being developed as an investment for the future, a low- and moderate-income rental housing complex is up for sale, with proceeds to go to a charitable foundation that has provided millions of dollars to a variety of organizations.
The nonprofit Kukui Gardens Corp. announced yesterday that it is looking to sell the 857-unit Kukui Gardens Housing Complex, where 2,500 tenants live on 22 acres near downtown Honolulu.
The sale will ensure the continued viability of the Clarence T.C. Ching Foundation, established by the late philanthropist in 1967, spokeswoman Elisa Yadao said.
As for why the complex was being put up for sale now, Yadao said it was "an opportune time."
Housing and land prices have been skyrocketing in the midst of a construction boom on Oahu, and the complex is on prime real estate.
Money raised by the sale would allow expansion of the foundation's charitable giving, she said.
No asking price was set for the complex Ching developed in 1970.
Kukui Gardens, which up to now has generated no money for the foundation, was created by Ching to provide for the future financial stability of the organization, Yadao said.
With original financing for the complex provided by the U.S. Department of Housing and Urban Development, monthly rents range from $444 for one-bedroom apartments to $818 for four-bedroom units, she said.
Tenants will be allowed to remain until at least 2011, when the 40-year HUD agreement expires, Yadao said. The five-year interval is expected to give tenants adequate time to find new housing, she said.
Over the years, the foundation has provided several millions dollars to Saint Louis School, Chaminade University and St. Francis Medical Center, as well as a variety of community organizations, she said.
Commercial real estate services company CB Richard Ellis is handling the sale, working under the direction of real estate consultant R. Stevens Gilley.
With prospective buys now being contacted, sales negotiations could begin by the middle of next month, Yadao said.