Triplex with Ocean and Diamond Head
For Sale
$1,250,000
2281 Palolo Avenue, Honolulu, HI 96816
Three-unit residential property with two full kitchens and a separate kitchenette.
Property Size3,304 SF
Price / SF$378.33
Days on Market281
Property Features for 2281 Palolo Avenue
General Information
Standard status
Active
Size
3,304 SF
Property subtype
Multi-Family / Multi-Family
Zoning
05 - R-5 Residential District
Net Operating Income
$1.00
Units
Unit Mix
1 x 3BR/2BA, 1 x 3BR/1.5BA, 1 x 1BR/1BA
Multifamily Units
3
Amenities
Asphalt Shingle
Telephone
Above Ground, Wood Frame
Building Details
Year Built
1946
Listing Agency:
2K Realty Inc.
(808) 520-4111
Listed By:
Ethan Robert Lema · License #RB-23866
(808) 520-4111
Source:
Compass
Added: Nov 23, 2025
Changed: Aug 31
Last Checked: Aug 31 at 2:20AM
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 2K Realty Inc.
Investment Insights
Based on property information with market context.
This 3,304-square-foot triplex contains three distinct living areas within a wood-frame structure built in 1946. The upper residence offers three bedrooms, two bathrooms, a full kitchen, and a family room. A second three-bedroom residence below includes one and a half bathrooms, another full kitchen, and its own family room. The property also includes a one-bedroom apartment with a full bathroom and kitchenette.
Located at 2281 Palolo Avenue in Honolulu, the property sits in Palolo Valley with views toward Diamond Head and the ocean, including sightlines from ground level. It is designated 05 - R-5 Residential District. The existing configuration provides multiple kitchens and varied living arrangements within one property.
Located at 2281 Palolo Avenue in Honolulu, the property sits in Palolo Valley with views toward Diamond Head and the ocean, including sightlines from ground level. It is designated 05 - R-5 Residential District. The existing configuration provides multiple kitchens and varied living arrangements within one property.
Key Highlights
- 3,304‑square‑foot triplex on 2281 Palolo Avenue
- Upper unit has 3 bedrooms, 2 bathrooms, full kitchen, and family room
- Lower unit includes 3 bedrooms, 1.5 bathrooms, full kitchen, and family room
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
$65,796
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
5.26%
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%
$1,315,920
$1.3M
Cap Rate 7%
$939,943
$939.9K
Cap Rate 9%
$731,067
$731.1K
Market Conditions
NOI Build-Up for 3,304 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
$101.1K $30.60/SF
− Vacancy
−$7.1K −$2.15/SF
EGI
$94.0K $28.45/SF
− OpEx
−$28.2K −$8.53/SF
NOI
$65.8K $19.91/SF
Area
Honolulu County, HI
Vacancy
7.03%
Lease Rate
$30.60 /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%
$1,315,920
Cap Rate 7%
$939,943
Cap Rate 9%
$731,067
Alternative Uses
Best Use
Multifamily LT 5
$939.9K
$822.5K – $1.10M
NOI $65,796 @ 7.0% cap · market cap 5.26%
Second Best
Apartment 5plus
$865.4K
$757.2K – $1.01M
NOI $60,578 @ 7.0% cap · market cap 4.85%
Theoretical Best
Specialty Retail
$1.34M
$1.17M – $1.56M
NOI $93,702 @ 7.0% cap · market cap 7.50%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Location Intelligence
Demographics for 96816, HI
51,586
Population
19,818
Households
2.6
Avg Household Size
45
Median Age
48%
College-Educated
94%
High-School Grad
9.6 sq mi
ZIP Area
5,374
Density / Sq Mi
$114,744
Median Household Income
$48,929
Median Earnings
$1,879
Median Rent
$1,121,400
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?
Triplex - Three-unit residential property with two full kitchens and a separate kitchenette.
Where is this triplex located?
The property is located at 2281 Palolo Avenue Honolulu, HI.
What is the asking price?
The asking price for this property is $1,250,000.
What are key features of this property?
This property features: 3,304‑square‑foot triplex on 2281 Palolo Avenue; Upper unit has 3 bedrooms, 2 bathrooms, full kitchen, and family room; Lower unit includes 3 bedrooms, 1.5 bathrooms, full kitchen, and family room
