Modern Industrial Distribution
For Sale
$4,000,000
73-5573 Lawehana Street, Kailua Kona, HI 96740
Built in 2019 and fully leased, this 13,500 SF industrial building is zoned ML-1a in West Hawaii.
Property Size13,500 SF
Price / SF$296.30
Days on Market87
Property Features for 73-5573 Lawehana Street
General Information
Standard status
Active
Size
13,500 SF
Property subtype
Industrial
Zoning
ML-1a
Occupancy
100%
Building Details
Building Size
13,500 SF
Year Built
2019
Construction
modern
Listing Agency:
GO COMMERCIAL, LLC
Listed By:
Gregory Ogin · License #HI #RB-16053
(808) 987-6446
Source:
Svn
Added: Jun 11
Changed: Aug 31
Last Checked: Sep 5 at 5:47AM
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 GO COMMERCIAL, LLC
Investment Insights
Based on property information with market context.
Built in 2019, this modern 13,500 SF industrial distribution building offers an efficient layout designed for warehouse and distribution, along with light industrial operations. The property is currently fully leased, and it benefits from industrial-grade infrastructure and amenities intended to support day-to-day operations.
Located in the West Hawaii area, the building sits within the Kaloko Light Industrial Area, with ML-1a zoning supporting a range of industrial uses. The contemporary construction and functional design make it suitable for investors seeking an income-producing industrial asset and for owner-users looking for a purpose-built facility in an established light industrial market.
Zoned ML-1a, the building’s configuration is centered on warehouse and operational capacity, aligning with distribution and light industrial requirements.
Located in the West Hawaii area, the building sits within the Kaloko Light Industrial Area, with ML-1a zoning supporting a range of industrial uses. The contemporary construction and functional design make it suitable for investors seeking an income-producing industrial asset and for owner-users looking for a purpose-built facility in an established light industrial market.
Zoned ML-1a, the building’s configuration is centered on warehouse and operational capacity, aligning with distribution and light industrial requirements.
Key Highlights
- 13,500 SF modern industrial building built in 2019
- Fully leased industrial property
- Zoned ML‑1a (Kaloko Light Industrial Area in West Hawaii)
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
$212,234
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
5.31%
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%
$4,244,680
$4.2M
Cap Rate 7%
$3,031,914
$3.0M
Cap Rate 9%
$2,358,156
$2.4M
Market Conditions
NOI Build-Up for 13,500 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
$252.7K $18.72/SF
− Vacancy
−$3.0K −$0.22/SF
EGI
$249.7K $18.50/SF
− OpEx
−$37.5K −$2.77/SF
NOI
$212.2K $15.72/SF
Area
Hawaii County, HI
Vacancy
1.20%
Lease Rate
$18.72 /SF/Yr
Expense Ratio
15.00%
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%
$4,244,680
Cap Rate 7%
$3,031,914
Cap Rate 9%
$2,358,156
Alternative Uses
Best Use
Warehouse
$3.03M
$2.65M – $3.54M
NOI $212,234 @ 7.0% cap · market cap 5.31%
Second Best
Industrial
$2.50M
$2.18M – $2.91M
NOI $174,781 @ 7.0% cap · market cap 4.37%
Theoretical Best
Specialty Retail
$4.61M
$4.03M – $5.38M
NOI $322,510 @ 7.0% cap · market cap 8.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Location Intelligence
Demographics for 96740, HI
38,234
Population
19,119
Households
2
Avg Household Size
45
Median Age
35%
College-Educated
94%
High-School Grad
242.4 sq mi
ZIP Area
158
Density / Sq Mi
$94,091
Median Household Income
$42,605
Median Earnings
$1,692
Median Rent
$730,600
Median Home Value
Market
Vacancy Rate% for Industrial in West region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Distribution center - Built in 2019 and fully leased, this 13,500 SF industrial building is zoned ML-1a in West Hawaii.
Where is this distribution center located?
The property is located at 73-5573 Lawehana Street Kailua Kona, HI.
What is the asking price?
The asking price for this property is $4,000,000.
What are key features of this property?
This property features: 13,500 SF modern industrial building built in 2019; Fully leased industrial property; Zoned ML‑1a (Kaloko Light Industrial Area in West Hawaii)
