Mixed-Use Property With Commercial
For Sale
$1,490,000
1104 Palama Street, Honolulu, HI 96817
Two-building property combines nine residential rooms with a street-facing commercial space and an existing Conditional Use Permit.
Property Size3,296 SF
Days on Market58
Property Features for 1104 Palama Street
General Information
Standard status
Active
Size
3,296 SF
Property subtype
Multi Family
Zoning
R-5
Additional Details
Asking Price
$1,500,000
Road Access
Yes
Taxes and HOA fees
Annual Taxes
$13,524
Building Details
Building Size
3,296 SF
Year Built
1905
Buildings
2
Listing Agency:
Fogarty Realty, Inc.
(808) 388-5411
Listed By:
Mike Tavepholjalern · License #RS-28810
(808) 388-5411
Source:
Commercialinvestmentstrategies
Added: Jun 26
Changed: Aug 14
Last Checked: Aug 21 at 11:54AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Fogarty Realty, Inc.
Investment Insights
Based on property information with market context.
This mixed-use property includes two buildings and nine residential rooms. The ground-floor commercial space features a roll-up door and direct frontage along the street, with retail, grocery, and light industrial uses identified in the property information. A Conditional Use Permit is in place for the commercial unit within the R-5 residential zone. Building A is undergoing renovation, while Building B is occupied. Constructed in 1905, the property is located on Palama Street in Honolulu’s Kalihi area. The stated stabilized cap rate range is 7.8% to 9.0%.
Key Highlights
- Two‑building mixed‑use property with nine residential rooms
- Ground‑floor commercial unit with roll‑up door access
- Direct street frontage for the commercial space
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$87,243
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.86%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,744,860
$1.7M
Cap Rate 7%
$1,246,329
$1.2M
Cap Rate 9%
$969,367
$969.4K
Market Conditions
NOI Build-Up for 3,296 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$130.9K $39.72/SF
− Vacancy
−$6.3K −$1.91/SF
EGI
$124.6K $37.81/SF
− OpEx
−$37.4K −$11.34/SF
NOI
$87.2K $26.47/SF
Area
Honolulu County, HI
Vacancy
4.80%
Lease Rate
$39.72 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,744,860
Cap Rate 7%
$1,246,329
Cap Rate 9%
$969,367
Alternative Uses
Best Use
Retail
$1.25M
$1.09M – $1.45M
NOI $87,243 @ 7.0% cap · market cap 5.86%
Second Best
Apartment 5plus
$863.3K
$755.4K – $1.01M
NOI $60,432 @ 7.0% cap · market cap 4.06%
Theoretical Best
Specialty Retail
$1.34M
$1.17M – $1.56M
NOI $93,475 @ 7.0% cap · market cap 6.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Paved road access
Location Intelligence
Demographics for 96817, HI
56,823
Population
21,489
Households
2.6
Avg Household Size
46
Median Age
30%
College-Educated
84%
High-School Grad
9.3 sq mi
ZIP Area
6,110
Density / Sq Mi
$74,690
Median Household Income
$42,492
Median Earnings
$1,419
Median Rent
$930,000
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Two-building property combines nine residential rooms with a street-facing commercial space and an existing Conditional Use Permit.
Where is this mixed-use property located?
The property is located at 1104 Palama Street Honolulu, HI.
What is the asking price?
The asking price for this property is $1,490,000.
What are key features of this property?
This property features: Two‑building mixed‑use property with nine residential rooms; Ground‑floor commercial unit with roll‑up door access; Direct street frontage for the commercial space
