KAILUA, OAHU (HawaiiNewsNow) - Hawaii Pacific University officials are calling the sale of the Hawaii Loa campus to Castle Medical Center a "win-win-win."
“It's good for us, it's good for Castle, it's great for the community," said Richard Rapoza, director of strategic communication at HPU.
The sale is in a 120-day due diligence period, in which everything on the property will be evaluated.
No price has been set yet.
Once the transaction is complete, Castle Medical Center will lease back the property to HPU for three to five years so the school can gradually transition all students to HPU's Fort Street Mall campus.
"We're going to need to relocate not only classrooms, but also administrative offices and laboratories," said Rapoza.
The sale will allow HPU to consolidate resources, reduce overhead, and brand themselves better to prospective students, officals said.
The challenge, though, will be replacing the lost space in a competitive Honolulu real estate market.
"We are talking to a number of different people about housing opportunities downtown both building our own dorms and talking to companies that would build our dorms for us," Rapoza said.
For Castle Medical Center, the sale means being able to grow. The Hawaii Loa campus is on 135 acres, 32 acres of which are usable. Castle's current campus is a landlocked 10 acres.
"It's way too small. We want to be sustainable into the future. We want to have health care services are efficient and effective and we're just really landlocked here," said Kathy Raethel, president and CEO of Castle Medical Center.
HPU was selective in who it sold the land to. Rapoza said Castle was the right partner for not only the transaction, but the needs of the community moving forward.
"We're deeply committed to the Windward community. We love this community and we want to provide the services we have historically into the future," said Raethel.