Joel La Pinta
Hawaii Island nonprofit Hope Services Hawaii recently closed on the $2.7 million purchase of a 12-unit apartment building in Kailua-Kona, which it plans to use to provide housing for individuals and families experiencing homelessness.
The Hilo-based nonprofit financed the acquisition using funds from the Bezos Day 1 Families Fund, the Oak Foundation Fund at the Hawaii Community Foundation and the U.S. Department of Housing and Urban Development.
The Kani Lea Apartments building at 75-5706 Kalawa St. was built in 1972 and has 12 two-bedroom, one-bath apartments.
“We are thrilled to grow our capacity to serve our community in West Hawaii,” Hope Services Hawaii CEO Brandee Menino said in a statement. “The No. 1 reason people experience homelessness is the high cost of housing. We took action when we saw an opportunity to create more stable, affordable homes.”
Brokers Joel La Pinta and Richard Wheelock of Pacific Realty Organization LLC represented the seller, an entity owned by Denver-based SouthWestern Property Corp. Amberlyn Castro of Equity Hawaii Real Estate LLC represented Hope Services.
La Pinta told Pacific Business News that there was a lot of investor interest in the building, but Hope Services came in with the best offer.
The location is ideal for people who work in Kailua-Kona, he noted.
“There’s a lot of jobs within walking distance of that property — food service, hotel, tourism businesses,” he said.
Gideon Ramos, Hope Services’ director of West Hawaii, said he is “deeply inspired by the new direction we at Hope are taking to directly address homelessness in Kona and across West Hawaii.”
“These apartment units represent a profound step forward, offering tangible solutions by providing homes for our most vulnerable unsheltered neighbors,” he said.
The Kani Lea Apartments is the first apartment building acquired by Hope Services, which is working to add more housing in other areas on Hawaii Island.
In 2018, Hope Services partnered with HPM Building Supply to build 20 micro-shelters on 14.5 acres in Pahoa near Pahoa Sacred Heart Church in response to the eruption of Kilauea volcano. The nonprofit completed a second phase with 12 more housing units there and is working on plans for a third phase, a spokeswoman told PBN.
It recently purchased 23.4 acres in Mountain View to develop new housing with funding from the Oak Foundation at HCF and is working on a master plan for the land.
Hope Services also entered into a five-year lease with Our Lady of Lourdes Catholic Church in Honokaa, also with funds from the Oak Foundation Fund at HCF. Hope Services is renovating the old convent house, which will have 10 permanent housing units for kupuna on the same property as the church, the spokeswoman said.
In Hilo, Hope Services recently entered into a five-year lease for a youth supportive housing program on Kinoole Street and is in discussions with the owner about purchasing the building. Hope Services also leased part of the old Hilo Hotel and is using 10 units there as permanent housing.
The nonprofit also master leases homes “as it’s the quickest way to add housing inventory for our community,” the nonprofit’s spokeswoman said.