Kailua Mixed-Use Investment
For Sale
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32 Kainehe St, Kailua, HI 96734
Mixed-use property in Kailua with retail, office, and industrial spaces.
Property Size5,549 SF
Price / SF$576.68
Days on Market841
Property Features for 32 Kainehe St
General Information
Standard status
Active
Size
5,549 SF
Property subtype
Retail, Office, Industrial
Zoning
U/32/30
Listing Agency:
Colliers - Honolulu, Hawaii
Listed By:
William (Bill) Froelich JD SIOR CCIM · License #HI RB-21658
Source:
Crexi
Added: Apr 23, 2024
Changed: Aug 8
Last Checked: Aug 8 at 4:04AM
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 Colliers - Honolulu, Hawaii
Investment Insights
Based on property information with market context.
This mixed-use building, under the same ownership for over 40 years, features a diverse tenant mix of retail, office, and industrial spaces. All leases are NNN and set to expire within the next 12 months. The property has over 90% tenant occupancy, with the remainder utilized by the seller. The property offers opportunities for both owner-users and investors. Constructed partially with CMU, the building benefits from a high walk score and convenient access from Kailua. The property has a size of 5549 square feet and minimal deferred maintenance.
Key Highlights
- High Tenant Occupancy: Boasting over 90% occupancy.
- Diverse Tenant Mix: Featuring a blend of retail, office, and industrial spaces.
- NNN Leases: All leases are NNN and expiring within 12 months.
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
$146,879
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
4.59%
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%
$2,937,580
$2.9M
Cap Rate 7%
$2,098,271
$2.1M
Cap Rate 9%
$1,631,989
$1.6M
Market Conditions
NOI Build-Up for 5,549 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
$220.4K $39.72/SF
− Vacancy
−$10.6K −$1.91/SF
EGI
$209.8K $37.81/SF
− OpEx
−$62.9K −$11.34/SF
NOI
$146.9K $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%
$2,937,580
Cap Rate 7%
$2,098,271
Cap Rate 9%
$1,631,989
Alternative Uses
Best Use
Retail
$2.10M
$1.84M – $2.45M
NOI $146,879 @ 7.0% cap · market cap 4.59%
Second Best
Office B
$2.03M
$1.78M – $2.37M
NOI $142,020 @ 7.0% cap · market cap 4.44%
Theoretical Best
Specialty Retail
$2.25M
$1.97M – $2.62M
NOI $157,370 @ 7.0% cap · market cap 4.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Demographics for 96734, HI
49,922
Population
18,208
Households
2.7
Avg Household Size
38
Median Age
53%
College-Educated
98%
High-School Grad
21.7 sq mi
ZIP Area
2,301
Density / Sq Mi
$131,554
Median Household Income
$56,374
Median Earnings
$3,297
Median Rent
$1,246,300
Median Home Value
Market
Vacancy Rate% for Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Mixed-use property - Mixed-use property in Kailua with retail, office, and industrial spaces.
Where is this mixed-use property located?
The property is located at 32 Kainehe St Kailua, HI.
What is the asking price?
The asking price for this property is $3,200,000.
What are key features of this property?
This property features: High Tenant Occupancy: Boasting over 90% occupancy.; Diverse Tenant Mix: Featuring a blend of retail, office, and industrial spaces.; NNN Leases: All leases are NNN and expiring within 12 months.
