Ala Moana Boulevard Retail
For Sale
Contact for pricing
1778 Ala Moana Blvd, Honolulu, HI 96815
World-class retail property with income growth potential in Honolulu, Hawaii.
Property Size36,956 SF
Price / SF$811.78
Days on Market175
Property Features for 1778 Ala Moana Blvd
General Information
Standard status
Active
Size
36,956 SF
Total Parking Spaces
250
Property subtype
Retail
Occupancy
93%
Lease Type
NNN
Investment Type
Value Add
Net Operating Income
$1,735,027
Building Details
Tenancy
Multi
Listing Agency:
Marcus & Millichap - Orange County
Listed By:
Adam Attia · License #RB22546
Source:
Crexi
Added: Feb 17
Changed: Aug 8
Last Checked: Aug 10 at 10:21AM
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 Marcus & Millichap - Orange County
Investment Insights
Based on property information with market context.
Located at 1778 Ala Moana Boulevard, Discovery Bay is a fee-simple retail property positioned at the entrance to Waikiki. This established property serves the essential needs of 660 residential units while capturing tourist spending. The property generates approximately $1.727MM of annual NOI and has over 40 years of operating history, providing defensive cash flow with potential for NOI growth through parking income optimization. The property includes 250 parking spaces in the complex’s parking structure, producing approximately $477,000 annually at below-market rates, offering an immediate NOI enhancement opportunity. The property size is 36956 square feet.
Key Highlights
- World‑class retail opportunity at the beginning of Waikiki retail (1778 Ala Moana Boulevard).
- Generates approximately $1.727MM of annual NOI with a 40+ year operating history.
- Opportunity for NOI growth through long‑term parking income optimization.
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
$978,203
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
3.26%
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%
$19,564,060
$19.6M
Cap Rate 7%
$13,974,329
$14.0M
Cap Rate 9%
$10,868,922
$10.9M
Market Conditions
NOI Build-Up for 36,956 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
$1.47M $39.72/SF
− Vacancy
−$70.5K −$1.91/SF
EGI
$1.40M $37.81/SF
− OpEx
−$419.2K −$11.34/SF
NOI
$978.2K $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%
$19,564,060
Cap Rate 7%
$13,974,329
Cap Rate 9%
$10,868,922
Alternative Uses
Best Use
Retail
$13.97M
$12.23M – $16.30M
NOI $978,203 @ 7.0% cap · market cap 3.26%
Second Best
Industrial
$6.93M
$6.06M – $8.08M
NOI $484,938 @ 7.0% cap · market cap 1.62%
Theoretical Best
Specialty Retail
$14.97M
$13.10M – $17.47M
NOI $1,048,075 @ 7.0% cap · market cap 3.49%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Demographics for 96815, HI
28,786
Population
22,804
Households
1.3
Avg Household Size
48
Median Age
47%
College-Educated
94%
High-School Grad
2.2 sq mi
ZIP Area
13,085
Density / Sq Mi
$75,020
Median Household Income
$55,543
Median Earnings
$1,903
Median Rent
$627,600
Median Home Value
Market
Vacancy Rate% for Retail in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Shopping center - World-class retail property with income growth potential in Honolulu, Hawaii.
Where is this shopping center located?
The property is located at 1778 Ala Moana Blvd Honolulu, HI.
What is the asking price?
The asking price for this property is $30,000,000.
What are key features of this property?
This property features: World‑class retail opportunity at the beginning of Waikiki retail (1778 Ala Moana Boulevard).; Generates approximately $1.727MM of annual NOI with a 40+ year operating history.; Opportunity for NOI growth through long‑term parking income optimization.
