State Green-Lights Queen’s Acquisition of Shuttered Ewa Facility
- Aug 27, 2012
Hawaii’s Health Planning and Development Agency has approved the sale of Hawaii Medical Center West in Ewa to Queen’s Health Systems for $73.2 million.
According to the Honolulu Star-Advertiser, Queen’s Health Systems will spend $21.2 million to purchase the West Oahu hospital building and land from St. Francis Healthcare System of Hawaii and $52 million in upgrades and equipment. The company expects to reopen the 134-bed facility in August 2013.
Hawaii Medical Center West, along with Hawaii Medical Center East in Liliha, was shuttered in December of last year, as part of the lengthy bankruptcy process of their owner, Hawaii Medical Center (HMC). In April 2012, U.S. Bankruptcy Judge Robert Faris ordered that the two HMC hospitals be returned to their former owner, St. Francis, the largest secured creditor in the company’s bankruptcy.
In May, Queen’s Health Systems signed a letter of intent and confidentiality agreement with St. Francis to explore the feasibility of acquiring and reopening the Ewa facility. Queen’s Health, Hawaii’s oldest health-care system, also owns the Queen’s Medical Center in Honolulu.
In other news, the Office of Hawaiian Affairs (OHA) purchased the 185,787-square-foot Gentry Pacific Design Center in Honolulu. The Pacific Business News reported that the state agency paid $21.4 million for the building and its three parcels, as shown by public conveyance tax documents.
The sale will not have any near-term impact on the existing tenants at the property, which include Indich Collection and Architectural Surfaces Inc. Colliers International Hawaii will continue to serve as property manager. OHA intends to honor current leases and move its offices to the building as space becomes available. Honolulu-based Bishop Street Commercial L.L.C. brokered the transaction on behalf of the seller.
The center was built in 1930 for the American Can Co. and purchased by Gentry Pacific in 1985. The purchase price was almost $8 million. In 2008, the assessed value of the property was about $28.8 million.
Photo credits: www.city-data.com