Two firms take over Luana Koa project
By Andrew Gomes
Advertiser Staff Writer
Two California companies have acquired the development rights to the delayed Luana Koa retirement community in Kapolei as part of a move to advance the ambitious project.
A joint venture between home builder Brookfield Homes and retirement community developer and operator Kisco Senior Living bought out original Luana Koa developer Hawaii Village Associates Inc. in a deal completed last week for an undisclosed price.
The partnership intends to meet with prospective project residents, some of whom hold refundable deposits, and revise Luana Koa's master plan.
"Both companies are excited about the opportunity," said Mitch Brown, executive vice president of Carlsbad, Calif.-based Kisco.
Brown said it would be premature to lay out a new development timetable or conceptual details envisioned by the partnership, though he said Luana Koa will still be a continuing care retirement community with independent-living, assisted-living and skilled-nursing services.
Continuing-care communities typically charge seniors an entry fee, which is wholly or partly refundable if they move out or die, plus monthly rent for services such as meals, housekeeping, transportation, activities and wellness care. As residents age, their care level can be adjusted.
As originally envisioned, Luana Koa would have been the state's largest senior-living project, with 850 units, or a little more than twice those of Kahala Nui, a $183 million project with 393 units nearing completion in Kahala.
An estimated $70 million first phase for Luana Koa was to include 150 apartments and 26 cottages for independent living, a 28-unit assisted-living facility and 32 beds for skilled nursing.
Hawaii Village focused on retired military personnel as its primary market, and reported taking refundable reservations for half of phase one, which was anticipated to break ground last year with the first units completed in early 2005.
Nancy Schoocraft, president and chief executive officer of Honolulu-based Hawaii Village, said in a June interview that finding an operator delayed the project, and that Hawaii Village was looking for partners.
Schoocraft could not be reached for additional information yesterday. A Brookfield representative also could not be reached for comment.
Kisco and Brookfield, doing business as Kapolei Senior Village LLC, acquired Hawaii Village's agreement to lease 40 acres of Campbell Estate land and roughly 70 reservations from prospective Luana Koa tenants.
Del Mar, Calif.-based Brookfield is developing 270 townhouses at Ko Olina Resort & Marina near Kapolei. Earlier this year the publicly traded company partnered with Alexander & Baldwin Inc. to build luxury homes at Mauna Lani Resort on the Big Island. Luana Koa would be Brookfield's first partnership with Kisco.
Kisco owns and operates 24 retirement communities in six states. The company has completed more than $120 million in development work in the past six years, and is committed to another $80 million in projects.
"We view the joint venture with Brookfield as a great blending of our senior housing expertise and their local home development capability," Brown said.
Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.
