Kahului Industrial Warehouse
For Sale
$5,529,953
220 Lalo Street, Kahului, HI 96732
Industrial asset with expansion potential in Maui's supply-constrained submarket.
Property Size12,000 SF
Lot Size2.00 Acres
Price / SF$460.83
Days on Market141
Property Features for 220 Lalo Street
General Information
Standard status
Active
Size
12,000 SF
Lot size
2.00 Acres
Property subtype
Industrial
Listing Agency:
(808) 541-5149
Listed By:
Nicholas Adler · License #RS-78419
(808) 541-5149
Source:
Cbre
Added: Mar 25
Changed: Jul 6
Last Checked: Aug 11 at 6:55PM
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 Nicholas Adler
Investment Insights
Based on property information with market context.
Located in the Kahului Industrial Area on Maui, Hawaii, this property provides logistical advantages due to its proximity to Kahului Harbor and island-wide access. The property features a steel-frame light industrial warehouse with an attached wood-frame retail/office facility. The gross leasable area is approximately 12,000 square feet. A photo voltaic system is in place. Situated on a 2-acre parcel, the property has a coverage ratio of 13%, while typical commercial/industrial properties have a 40-60% coverage ratio. The estimated surplus land area is approximately 63,930 square feet. Zoned M-2 Heavy Industrial, the property offers expansion potential supported by market fundamentals. This property presents an opportunity for investors and owner-users to acquire an industrial asset in a supply-constrained submarket.
Key Highlights
- Prime location in Kahului Industrial Area, near Kahului Harbor, providing superior logistics and island‑wide access.
- Significant expansion potential due to M‑2 Heavy Industrial zoning and low 13% site coverage.
- Large 2‑acre parcel (approximately 63,930 sq. ft. surplus land area) offering operational flexibility and outdoor yard usage.
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
$286,675
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
5.18%
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%
$5,733,500
$5.7M
Cap Rate 7%
$4,095,357
$4.1M
Cap Rate 9%
$3,185,278
$3.2M
Market Conditions
NOI Build-Up for 12,000 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
$432.0K $36.00/SF
− Vacancy
−$22.5K −$1.87/SF
EGI
$409.5K $34.13/SF
− OpEx
−$122.9K −$10.24/SF
NOI
$286.7K $23.89/SF
Area
Maui County, HI
Vacancy
5.20%
Lease Rate
$36.00 /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%
$5,733,500
Cap Rate 7%
$4,095,357
Cap Rate 9%
$3,185,278
Alternative Uses
Best Use
Retail
$4.10M
$3.58M – $4.78M
NOI $286,675 @ 7.0% cap · market cap 5.18%
Second Best
Office B
$3.41M
$2.98M – $3.98M
NOI $238,680 @ 7.0% cap · market cap 4.32%
Theoretical Best
Specialty Retail
$4.85M
$4.25M – $5.66M
NOI $339,807 @ 7.0% cap · market cap 6.14%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Demographics for 96732, HI
27,507
Population
8,728
Households
3.2
Avg Household Size
40
Median Age
26%
College-Educated
88%
High-School Grad
11.9 sq mi
ZIP Area
2,312
Density / Sq Mi
$94,360
Median Household Income
$45,071
Median Earnings
$1,479
Median Rent
$832,700
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Warehouse - Industrial asset with expansion potential in Maui's supply-constrained submarket.
Where is this warehouse located?
The property is located at 220 Lalo Street Kahului, HI.
What is the asking price?
The asking price for this property is $5,529,953.
What are key features of this property?
This property features: Prime location in Kahului Industrial Area, near Kahului Harbor, providing superior logistics and island‑wide access.; Significant expansion potential due to M‑2 Heavy Industrial zoning and low 13% site coverage.; Large 2‑acre parcel (approximately 63,930 sq. ft. surplus land area) offering operational flexibility and outdoor yard usage.
