Isle developer
expediting
assisted-living
projects
The first of seven facilities
By Jerry Tune
is scheduled to be built in Kaneohe
Star-BulletinLocal developer Sheldon Zane, flush with $150 million in financing, said he will start this month on construction for the first of seven planned assisted-living rental projects that will add more than 1,000 units to the Hawaii market.
The first $12 million, 80-unit project will be in Kaneohe, at 45-607 Mahinui Road, and include a wing for Alzheimer's patients. Assisted living refers to residential projects for senior citizens that help residents with daily chores such as bathing and preparing meals.
Zane said he has a fast-track schedule to start other construction: Kapolei, end of summer; Hilo, fall; downtown Honolulu, fall; Hawaii Kai, end of 1999; and Kailua, next year.
He said contracts have been signed for all sites except downtown Honolulu and Kailua, which are under negotiation.
"We hope to dominate the market," said Zane, president of the Zane Development Group. "We see a demand for about 10,000 units."
Zane's market survey focused on areas where seniors could afford rents of $2,400 to $3,0000 a month. Alzheimer's patients will pay $3,800 to $4,000, depending on the level of the affliction.
"We want to be in neighborhoods close to the children (of the seniors) so it's easy for them to visit," Zane said.
While other developers complain about how difficult it is to get investment into Hawaii, with its slow economy, Zane said his investors "are familiar with the health industry as a proven industry." Although he declined to name his investors, he said that most of the money is coming from Canada, with some from Maryland.
Overall, the seven projects will generate $100 million in construction, and employ 250 to 300 workers in full-time service jobs, Zane said. For every 80 units, about 40 employees are needed.
Zane, whose local developments have included $275 million of housing at West Loch, figures construction of all seven projects should be completed in about three years.
Paradigm Senior Living Inc. of Portland, Ore., will manage his projects, which will will operate as Paradigm Pacific Senior Living LLC. Paradigm manages four seniors projects in Washington and Oregon. Lee Cory, company president, has worked with seniors projects since 1983.
Zane's biggest competition could come in Hawaii Kai where Holiday Retirement Corp./Colson & Colson is moving to expand its 193-unit project, which includes 43 units of assisted living.
But Zane said Colson & Colson, based in Salem, Ore., is known more for independent living. "We won't be competing directly with them," Zane said. Zane plans about 280 to 300 assisted living units, and another 170 affordable units with a nonprofit group at the location on Hawaii Kai Drive near the post office.
Colson's Hawaii Kai Retirement project is in Kaalakei Valley, closer to Honolulu. It is expanding with 177 additional rental apartments for seniors, and also building a 120-unit project at Kihei, Maui.
Janet Johnson, project manager at the Hawaii Kai Retirement, believes that both independent living and assisted living are needed.
"Those who come to our independent side can shift over to assisted living (if needed)," Johnson said. "A lot of residents in the islands are independent and still very active."
The Kihei project will have 42 assisted-living units and about 78 for independent living.
Holiday Retirement Corp./Colson & Colson has done seniors projects in more than 220 locations in the United States, Canada and England. The next phase at Hawaii Kai and the Maui housing will both be completed in June or July, Johnson said.
