Kamehameha Schools has reportedly turned down a request from the association of apartment owners of The Kahala Beach condominium to extend the lease on the property beyond its scheduled expiration in July 2027, according to a current owner.
If the report is correct, and the decision is not reconsidered and reversed, it means the buildings and all 196 apartments will revert to Kamehameha Schools in ten years at the end of the current lease.
Apartments in the once prestige building at 4999 Kahala Avenue, located between the Waialae Country Club and the Kahala Hotel, have been selling at heavily discounted prices in recent years due to uncertainty about the building’s future.
The 196 condominium apartments, which range in size from 1,050 square feet up to 3,510 feet, still command high lease rents, despite their limited future. Lease rents for the current period are over $5,600 per month for the largest apartments, with most apartments paying at least $2,000 per month. The association has been in negotiations to set the new lease rent for the final ten year period of the lease, which begins in July, while simultaneously seeking a lease extension.
A group of Kahala Beach owners previously tried to qualify under the city’s former leasehold conversion law, which under certain conditions would force landowners to sell the fee simple interest to qualified lessees. That case went all the way to the Hawaii Supreme Court, which ruled against the apartment owners in a 2005 decision. The city repealed the law in that same year.
Both the Kahala Hotel and the Waialae Country Club are also subject to Kamehameha Schools leases. There is some speculation that Kamehameha may be considering a long-term plan that includes the eventual takeover of the entire area stretching from Waialae Beach Park to the eastern end of the golf course.
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Has there been any change on the lease in 2018 ?
Any change in lease for 2020? What plans does the Kamehameha school district have for the properties??
They would be smart to take all three pieces of land together or at least the hotel and the Condo then they would have something fabulous!!!! One piece competes with the other!!!!!
Guess you’re not an owner there
No, I’m not.
does anyone know what will happen in 2027?
I’m curius as well. What will happen to the homeowners? What is the process if the lease is not renewed?
Well, when the lease expires, the homeowners will be expected to walk away. Kamehameha Schools will go to court for an order of possession, pretty much a formality, I believe. If they aren’t ready to make use of the property, they may let people stay on a month-to-month basis. But essentially homeowners will have no right to hold on to their property once the lease has expired.
Nobody knows what they will do! We are all second guessing them! Actually I don’t think they know
What they want to do with the property! They hart have the money to do whatever they want! But they are bright people and it depends on the economy.
They don’t want to sit with aWhite Elephant !if the timiing is right they will take it if not they probably will
Renew
I would think that the school district makes a nice income from leasing. Would they sell for a lump sum and then what of the condo’s and hotel?
What does the term lease rent mean dont you have to buy these places?
You buy the condo apartment, but it was built on land that was leased from a large estate landowner. When the lease runs out, if it doesn’t get extended or converted to fee simple ownership, the landowner takes back the building. It was common in the mid 20th century as a way to keep housing costs down, but in the long run it didn’t work that way.
Was curious if anyone has called them for an update. I’m looking at a spot there Friday but worried it is a waste for 5 years of bliss to lose 100k. I believe I’ll offer far less as to the uncertainty of this property.
There has been no change in the situation, no willingness by Kamehameha Schools to extend the current lease, at least as I’ve heard to date.