Building Details

Buildings 2

Listing Agency: Coldwell Banker Island Properties - Kamuela g***@islandproperties.com

Listed By: Hanalei De Rego Show Phone

Source: Exprealty

Added: Jan 23 Changed: Sep 18 Last Checked: Sep 21 at 10:35AM

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Investment Insights

Based on property information with market context.

This multifamily property includes two permitted residences totaling 2,692 square feet on a 1-acre parcel. The primary home was completed in 2021 with three bedrooms, two baths, a split-bedroom layout, vaulted living-room ceilings, built-in shelving, a walk-in closet, ensuite bath, split A/C, and an office area. The second residence was built in 2024 and provides two bedrooms and two baths with a modern farmhouse-inspired interior and butcher-block countertops.

The homes sit on a paved corner lot with a paved driveway, full chain-link fencing, two gated entrances, and Ghost openers. County water serves the property, while paid-off PV systems are installed at both residences. Mature fruit trees, vegetable and herb gardens, and dedicated catchment systems with irrigation spigots support agricultural and homesteading uses.

Key Highlights

• Two permitted homes on a 1‑acre parcel totaling 2,692 square feet
• Primary residence completed in 2021 with 3 bedrooms and 2 baths
• Second residence built in 2024 with 2 bedrooms and 2 baths

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

$40,370

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

3.76%

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%

$807,400 $807.4K

Cap Rate 7%

$576,714 $576.7K

Cap Rate 9%

$448,556 $448.6K

Market Conditions

NOI Build-Up for 2,692 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

$59.8K $22.20/SF

− Vacancy

−$2.1K −$0.78/SF

EGI

$57.7K $21.42/SF

− OpEx

−$17.3K −$6.43/SF

NOI

$40.4K $15.00/SF

Area

Hawaii County, HI

Vacancy

3.50%

Lease Rate

$22.20 /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%

$807,400

Cap Rate 7%

$576,714

Cap Rate 9%

$448,556

Alternative Uses

Best Use

Multifamily LT 5

$576.7K

$504.6K – $672.8K (±1% cap)

NOI $40,370 @ 7.0% cap · market cap 3.76%

Second Best

Apartment 5plus

$528.2K

$462.2K – $616.3K (±1% cap)

NOI $36,977 @ 7.0% cap · market cap 3.44%

Theoretical Best

Specialty Retail

$918.7K

$803.9K – $1.07M (±1% cap)

NOI $64,311 @ 7.0% cap · market cap 5.98%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Duplexes

Lease Details

2

Residential units

Yes

Paved road access

Yes

Utilities to site

Location Intelligence

Demographics for 96749, HI

20,503

Population

7,545

Households

2.7

Avg Household Size

42

Median Age

23%

College-Educated

92%

High-School Grad

59.8 sq mi

ZIP Area

343

Density / Sq Mi

$74,633

Median Household Income

$41,366

Median Earnings

$1,268

Median Rent

$396,400

Median Home Value

Market

Vacancy Rate% for Multifamily in West region

7% 2022

7.8% 2023

8.6% 2024

8.6% 2025

Questions? Ask Rey

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What type of property is this? Where is this multifamily properties located? What is the asking price? Find similar properties What are key features of this property?

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Frequently Asked Questions

What type of property is this?

Multifamily property - Two permitted residences offer flexible owner-occupant and rental arrangements on a fenced, landscaped parcel.

Where is this multifamily property located?

The property is located at 15-1634 Paradise Dr Keaau, HI.

What is the asking price?

The asking price for this property is $1,075,000.

What are key features of this property?

This property features: Two permitted homes on a 1‑acre parcel totaling 2,692 square feet; Primary residence completed in 2021 with 3 bedrooms and 2 baths; Second residence built in 2024 with 2 bedrooms and 2 baths