KALANI SALE news from Richard Koob, founder

 “Kalani Honua”, Hawaii’s coastal Retreat/Conference Center is available for new owner/operator.   

Kalani Honua is a beautifully landscaped, full-service retreat center on the Puna Coast of Hawai'i, the "Big Island".  Its current interest holders and not-for-profit manager are interested in selling both the business and the property on which it sits.  (The family partnership that holds the majority interest over the property and structures is at a point in time where the majority seeks to realize their investment and move on.)  For more than forty years, Kalani Honua, "harmony of heaven and earth," has provided educational programs, as well as food and lodging, welcoming thousands of participants from all over the world and offering an integrated appreciation of nature, culture, wellness, and sustainable living.  From its founding in 1975 through 2013, the retreat business grew an average of 20% annually, with gross revenue ultimately exceeding $5M (net over $1M); however, challenges including market fluctuations and competition, increases in staff numbers and compensation, plus a severe tropical storm and recent lava flows in the area made continued growth unsustainable.  Notwithstanding, there is a business plan in place which will restore Kalani Honua to full functionality and profitability.

The May-June, 2018 lava flow has ceased and the area is safe and accessible.  A facility-care crew remained throughout the shut-down, so the property has been properly maintained.  There are several areas that were overdue for infrastructure improvement (cesspools to septic tanks) and modernization (for example, the kitchen and dining lanai), and the projected cost for this work is between $250K and $500K.
 

The offer:   The developed 19 acre property and retreat business for $2M.  The current Hawai’i County Tax Office (land + building) assessment is $1,265,500 (was $2,110,000 prior to the May-June, 2018, nearby lava flows).  See http://qpublic9.qpublic.net/hi_hawaii_display.php?county=hi_hawaii&KEY=120090280000. Please note that the County assessment does not include the value of transfer of business, contacts, equipment, furniture, good will, etc.  Recent property sales in the area show that values have been restored and commercial development continues.  Pāhoa, the nearest town (about a 15 minute drive), although threatened by a lava flow in a 2014 has completely rebounded and become the regional center for the coastal area of the district of Puna. 

The 19 acre property is 2,300’ long with 350’ width across the top and 380’ across the bottom, which borders coastal road Hwy. 137.  The land on the ocean side of the road is State of Hawai’i conservation. Properties adjoining the retreat center are owned by investment companies supportive of the retreat center and have approximately 30 cottages available for rental by retreat center for additional, superior guest housing.  There is a paved road through the property.

Options for The Future: The 19 acres is zoned Ag 3, meaning it is for agricultural use, and can be subdivided into minimum 3 acre lots. So options include reviving the Special Use Permit (SUP) to operate as a retreat center or subdividing and selling six agricultural lots, each of which could have two farm dwellings, which could qualify for farming families and/or farm stays.  Some existing structures designed for staff and visitor retreat housing could be converted to farm dwellings.
   
CONTACT:

Elizabeth Koob
KOOB & MAGOOLAGHAN
221 Devoe Avenue
Yonkers, NY 10705
 elk@kmlaw-ny.com