‘Iolani School has purchased 5.5 acres of land adjacent to its campus from Lum Yip Kee, Ltd. and Lum Chang Tai, Inc. for $23 million, it was announced today.
‘Iolani plans to use the property over the long term for possible expansion of the school’s campus.
"The property has the long-term potential for addressing the needs of the school and the students we serve. It provides the next generation of leaders and educators an opportunity to think more expansively about our future," said Headmaster Val Iwashita. While some conceptual plans exist, nothing has been finalized. The school has no plans to increase enrollment. 
“Any potential development of this property is still years away,” emphasized Iwashita. “When the time comes to develop this property, we plan to begin along the 1.9 acre corridor between the school campus and Laau Street, and the vacant lot on the corner of Date and Laau Street,” explained Iwashita. “Most of the housing units will therefore remain in place for the long term.”
The property consists of 21 contiguous parcels bounded on two sides by Laau and Date streets, and on the other two sides by the ‘Iolani School campus, The Royal ‘Iolani and the Regency Tower condominiums. Included in the property is a private roadway (Laau Street), four vacant lots, two individually-owned apartment buildingsand ninecooperatively owned apartment buildings – Diana Apartments, Lani Home, Laau Gardens, ‘Iolani Gardens, Princess Anne Apartments, Canal House, Hale Laau, Hale Laau II, and ‘Iolani Banyan. The two individually-owned apartment buildings and nine cooperatively-owned apartment buildings are held under separate subleases. The master lease and the subleases covering the leasehold improvements all expire Dec. 4, 2012. Lum Yip Kee is selling the entire area and the fee will not be available to current owner-occupants for purchase. 
‘Iolani School has retained Bill Ramsey, Inc., the current property management company, to manage the rental units and to address tenant needs. The management company will also help the school to determine if repairs to the property are needed after the master lease and subleases expire in 2012.
As portions of the property are converted to school uses after 2012, the school plans to continue to rent units, consistent with the long term development schedule of the property for school purposes.
“It’s important to remember that any development is still years away, giving everyone lots of time to develop a reasonable transition plan,” said Iwashita. “When we are ready to develop, prior notice will be given to the tenants.”
The school’s property manager will also work closely with community leaders and organizations to help all tenants manage this transition, whether they wish to remain on the property, or move elsewhere.
‘Iolani School has set up a separate entity, Building Futures LLC, to facilitate this transaction and to hold and help maintain the properties.
Situated on a 25-acre campus serving more than 1,800 K – 12th grade students on Oahu, ‘Iolani School is a culturally diverse, co-educational, college preparatory school that was founded in 1863 with support from King Kamehameha IV and his queen, Emma. Through dynamic and personalized instruction in a multitude of disciplines, ‘Iolani develops liberally educated, well-rounded individuals who are well prepared for college and ready to assume their responsibilities as active, moral citizens. ‘Iolani is rated among the best independent schools in the country for its academic programs, as well as its performing and fine arts, and athletic programs. ‘Iolani School, which employs approximately 285 faculty and staff, has been located at its current campus location since 1946. ‘Iolani’s campus is regularly used for a number of community-based educational and sports events throughout the year.
Map of Property
Photos: Dr. Iwashita speaks to faculty and staff on June 30 about the land purchase.
