Value-Add Multifamily with Retail
For Sale
$2,595,000
3154 Waialae Avenue, Honolulu, HI 96816
Two hollow-tile buildings include bakery space, separately metered apartments, and 10 covered parking stalls.
Property Size8,661 SF
Price / SF$299.62
Days on Market49
Property Features for 3154 Waialae Avenue
General Information
Standard status
Active
Size
8,661 SF
Property subtype
Multi Family
Taxes and HOA fees
Annual Taxes
$26,929
Building Details
Building Size
8,661 SF
Year Built
1942
Listing Agency:
Commercial Inv. Strategies
(808) 429-1098
Listed By:
Christina L Dwight · License #RB-20978
(808) 429-1098
Source:
Careyluxury
Added: Jul 6
Changed: Aug 23
Last Checked: Aug 21 at 10:29AM
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 Commercial Inv. Strategies
Investment Insights
Based on property information with market context.
This offering consists of two hollow-tile buildings with a mixed configuration. The front building includes a 3-bedroom / 1-bath unit over an existing bakery space. The back building features nine one-bedroom units. The property provides 10 covered parking stalls.
Public remarks indicate the asset is located to the right of the St. Louis/Chaminade entrance. Unit utilities are managed with separate metering: there are two gas meters and two water meters, and all units are separately metered for electric. The bakery pays their own gas plus 1 CAM for laundry, per the provided remarks.
As of the information in the public remarks, some units have been renovated, with four vacant units and three units on term.
Public remarks indicate the asset is located to the right of the St. Louis/Chaminade entrance. Unit utilities are managed with separate metering: there are two gas meters and two water meters, and all units are separately metered for electric. The bakery pays their own gas plus 1 CAM for laundry, per the provided remarks.
As of the information in the public remarks, some units have been renovated, with four vacant units and three units on term.
Key Highlights
- Year built 1970 two hollow‑tile buildings with bakery space and separately metered apartments.
- Front building has 3 bed/1 ba over an existing bakery; back building has 9 one‑bedroom apartments.
- 10 covered parking stalls included.
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
$158,798
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
6.12%
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%
$3,175,960
$3.2M
Cap Rate 7%
$2,268,543
$2.3M
Cap Rate 9%
$1,764,422
$1.8M
Market Conditions
NOI Build-Up for 8,661 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
$311.8K $36.00/SF
− Vacancy
−$23.1K −$2.66/SF
EGI
$288.7K $33.34/SF
− OpEx
−$129.9K −$15.00/SF
NOI
$158.8K $18.33/SF
Area
Honolulu County, HI
Vacancy
7.40%
Lease Rate
$36.00 /SF/Yr
Expense Ratio
45.00%
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%
$3,175,960
Cap Rate 7%
$2,268,543
Cap Rate 9%
$1,764,422
Alternative Uses
Best Use
Apartment 5plus
$2.27M
$1.98M – $2.65M
NOI $158,798 @ 7.0% cap · market cap 6.12%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$3.51M
$3.07M – $4.09M
NOI $245,627 @ 7.0% cap · market cap 9.47%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
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?
Apartment building - Two hollow-tile buildings include bakery space, separately metered apartments, and 10 covered parking stalls.
Where is this apartment building located?
The property is located at 3154 Waialae Avenue Honolulu, HI.
What is the asking price?
The asking price for this property is $2,595,000.
What are key features of this property?
This property features: Year built 1970 two hollow‑tile buildings with bakery space and separately metered apartments.; Front building has 3 bed/1 ba over an existing bakery; back building has 9 one‑bedroom apartments.; 10 covered parking stalls included.
