In The News
Carmel outlines plans for Kukui Gardens
July 29, 2006
Public Business News
Carmel Partners says it intends to complete the acquisition of Kukui Gardens Apartments as soon as possible after getting federal approval.
The U.S. Department of Housing and Urban Development must approve the $140 million purchase before it can go to closing. Carmel outlined its plans Friday in apparent response to concerns about possible displacement of tenants.
“Our long-term business plan is to operate Kukui Gardens as rental housing,” Carmel Managing Partner Chris Beda said. “In the short term, we will operate the property consistent with the rental terms established in the standard form HUD use agreement.”
San Francisco-based Carmel intends to seek county and state tax exemptions to fund monthly discounts for qualifying households. At the federal level, Carmel will seek a rental voucher program to be used by qualifying families towards rent subsidies after May 2011. Carmel favors a system whereby the subsidy stays with the recipient rather than with the property.
“If a subsidized resident moves to a different location, the subsidy should travel with him, Beda said. “It is the person who is in need — not the property.”
Beda said the company is also willing to discuss building high-density housing on a portion of the property. And he committed Carmel to cooperating with any future transit station on the land.
“Carmel Partners is a long-term real estate investor,” Beda said. “Hawaii is one of our core markets, and we currently have other real estate holdings here and intend to expand our presence. It is not our business plan to acquire and ‘flip’ real estate, and our track record demonstrates that we have not done this.”
Carmel’s Hawaii projects include the Aloha Surf Hotel and a 520-unit residential project at Kalaeloa that is managed as workforce housing.
