Posted on: Saturday, September 25, 2004

New medical building proposed in Makiki

By Andrew Gomes
Advertiser Staff Writer

A Mainland real-estate investment trust is proposing to build a $41 million medical office building for the state's largest healthcare provider on the site of the former Meadow Gold ice cream plant in Makiki.

Tennessee-based Healthcare Realty Trust Inc. is negotiating with Hawaii Pacific Health to develop a complex for physicians on a roughly 1-acre property at the corner of Young and Ke'eaumoku streets.

Pat Oda, spokeswoman for Hawaii Pacific Health, said that while no definitive agreement has been reached, the healthcare provider is facing growing demand for services and therefore is contemplating expansion possibilities.

A Healthcare Realty official could not be reached late yesterday, but the company said in its most recent financial report that it anticipates constructing the medical building. An expected timetable and building size were not disclosed.

Healthcare Realty bought property for $5.8 million in May from Meadow Gold Dairies' parent, Dallas-based Dean Foods Co., and recently began demolishing the old ice cream production plant.

Meadow Gold quit ice cream production last year, saying it lost money on the operation, and now has ice cream produced by other local and Mainland manufacturers under the Meadow Gold name.

Kimberly Christy, a tenant renting an apartment above a bartending school next to the former ice cream factory, welcomes a medical building next door, though she doesn't expect she'll receive two gallons of free ice cream like she did a couple of years ago.

"We're really glad there's going to be improvements to the property around us," she said.

Healthcare Realty buys, develops and manages healthcare-related property, including facilities for office, outpatient, assisted-living, skilled-nursing, inpatient and independent-living use.

The publicly traded company established in 1992 has $1.8 billion invested in medical real estate in 32 states, including two buildings affiliated with Kapi'olani Health, which is part of Hawaii Pacific Health along with Straub Clinic & Hospital and Wilcox Health System.

Healthcare Realty last year paid $20.6 million for the Pali Momi Medical Office Building attached to Kapi'olani Medical Center at Pali Momi, and the Women and Children's Medical Office Building, also known as the Kapi'olani physicians' office tower.

Reach Andrew Gomes at agomes@honoluluadvertiser.com or 525-8065.