OHA announces commercial acquisition of two properties next to Nā Lama Kukui
News Release from OHA, October 1, 2021
HONOLULU, HI (October 1, 2021) – The Office of Hawaiian Affairs (OHA) announced today it has finalized the purchase of two properties, one at 500 N. Nimitz Highway and the other at 501 Sumner Street. They are both adjacent to Nā Lama Kukui, the OHA headquarters at 560 N. Nimitz Highway.
The Board of Trustees voted to purchase the properties for $47 million.
OHA’s acquisition of these commercial properties represents a long-term investment that is expected to generate more than $1 million per year in net income as well as provide a larger presence in the Iwilei area. All funds generated by OHA are directed toward the betterment of conditions for Native Hawaiians and spending is guided by OHA’s strategic plan and related investment and spending policies.
500 N. Nimitz currently houses popular national retail chains Ross Dress for Less, Long’s (CVS Pharmacy) and PetSmart. 501 Sumner Street is an industrial property that also houses a host of small businesses.
The purchase follows OHA’s 15-year strategic plan which calls for increasing the value of investments and the value from financial, commercial, and land resources.
“The decision by our trustees to invest in these two properties was ultimately based on what is best for our Native Hawaiian beneficiaries. These properties are a long-term investment for our people and the due diligence accomplished by our team was extensive,” said OHA Board Chair Carmen “Hulu” Lindsey, who has owned her own real estate company for more than 40 years. “Our Mana i Mauli Ola Strategic Plan calls for us to increase the value of our commercial and land resources and to steward our financial and commercial resources. We feel that acquiring these two properties provides us with another revenue stream and increases our ability to deliver programs and services to more Native Hawaiians.”
OHA has seen its 2012 purchase of Nā Lama Kukui (NLK) more than double in value. The net income generated from lease rent at NLK has provided additional funding for OHA. OHA anticipates a similar outcome for these new properties.
OHA’s revenue generating commercial properties are comprised of Nā Lama Kukui and 30-acres in Kakaʻako Makai.
OHA has a decades-long track record of responsible land management beginning with the legacy lands acquired in 1988 when Pahua Heiau in Maunalua was deeded to it. Since then, OHA has acquired and currently manages over 26,000 acres of legacy lands to protect Hawaiʻi’s natural and cultural resources making it the 13th largest landowner in Hawaiʻi. These legacy properties include the Wahiawā lands surrounding the Kūkaniloko Birthstones, Wao Kele o Puna on Hawai‘i Island, and the Palauea Cultural Preserve on Maui.
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