Federal Register #2026-17142

Exemption for Sale of Honolulu Property by Hawai'i Pacific Health Retirement Plan to Straub Clinic & Hospital

This opportunity involves an exemption granted by the U.S. Department of Labor's Employee Benefits Security Administration for the sale of real property in Honolulu, Hawaii. - Government Buyer: - U.S. Department of Labor, Employee Benefits Security Administration, Office of Exemption Determinations - OEMs and Vendors: - Hawai'i Pacific Health Retirement Plan (seller) - Straub Clinic & Hospital (buyer) - Central Pacific Bank (Qualified Independent Fiduciary) - Lesher Chee Stadlbauer (Qualified Independent Appraiser) - Products/Services Requested: - Sale of a parcel of real property at 888 South King Street, Honolulu, HI - Minimum sale price: $16,247,000 or 110% of appraised value (whichever is greater) - Fiduciary services to oversee and approve the transaction - Appraisal services to determine fair market and investment value - Unique or Notable Requirements: - Sale must be overseen by a Qualified Independent Fiduciary and appraiser - Sale price must exceed fair market value, considering unique property features and restrictions - Repayment of certain property expenses by Straub or Hawai'i Pacific Health prior to sale - Six-year recordkeeping requirement for audit and examination - Transaction structured to comply with ERISA and Internal Revenue Code - OSHA variance (unrelated to the property sale) granted to NASA for Neutral Buoyancy Laboratory Operations Contract

Description

This notice announces an exemption permitting the Hawai'i Pacific Health Retirement Plan to sell property to Straub Clinic & Hospital for the greater of $16,247,000 or 110% of the appraised value of the property as of the sale date. The exemption ensures the sale complies with prohibited transaction restrictions under ERISA and the Internal Revenue Code. The sale price was negotiated to exceed the property's fair market value, considering its unique features and investment value to Straub. The exemption includes conditions to protect the plan and its participants, including repayment of certain property expenses by Straub prior to sale.

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