Building Details

Building Size 35,809 SF

Year Built 1983

Tenancy Multi

Listing Agency: Marcus Realty

Listed By: Kevin Y Nishikawa · License #RB-17304 Show Phone

Source: Deepbluehi

Added: Apr 1 Changed: Aug 31 Last Checked: Sep 2 at 1:11PM

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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 Realty

Investment Insights

Based on property information with market context.

This multi-tenant shopping center occupies two contiguous fee simple parcels totaling approximately 2.2 acres. The property contains approximately 36,000 square feet of leasable area, including 6,300 square feet of second-floor offices, along with 95 parking stalls. Approximately 65% of the space is occupied, and the improvements were built in 1983.

The property is located at 41-1537 Kalanianaole Highway in Waimanalo, Hawaii. Both parcels are currently subject to a Master Ground Lease scheduled to expire on 12/14/2026. The sale includes TMK 1-4-1-009: 275 and 278.

Key Highlights

• Approximately 36,000 square feet of leasable area
• Two contiguous fee simple parcels totaling approximately 2.2 acres
• Includes 6,300 sq. ft. of second floor offices

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

$952,899

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

9.08%

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%

$19,057,980 $19.1M

Cap Rate 7%

$13,612,843 $13.6M

Cap Rate 9%

$10,587,767 $10.6M

Market Conditions

NOI Build-Up for 36,000 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

$1.43M $39.72/SF

− Vacancy

−$68.6K −$1.91/SF

EGI

$1.36M $37.81/SF

− OpEx

−$408.4K −$11.34/SF

NOI

$952.9K $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%

$19,057,980

Cap Rate 7%

$13,612,843

Cap Rate 9%

$10,587,767

Alternative Uses

Best Use

Retail

$13.61M

$11.91M – $15.88M (±1% cap)

NOI $952,899 @ 7.0% cap · market cap 9.08%

Second Best

Office B

$13.16M

$11.52M – $15.36M (±1% cap)

NOI $921,375 @ 7.0% cap · market cap 8.77%

Theoretical Best

Specialty Retail

$14.59M

$12.76M – $17.02M (±1% cap)

NOI $1,020,963 @ 7.0% cap · market cap 9.72%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Shopping centers

Lease Details

65%

Occupancy

Multi-tenant

Tenancy

Location Intelligence

Demographics for 96795, HI

11,064

Population

2,662

Households

4.2

Avg Household Size

39

Median Age

22%

College-Educated

92%

High-School Grad

11.5 sq mi

ZIP Area

962

Density / Sq Mi

$118,365

Median Household Income

$44,581

Median Earnings

$1,710

Median Rent

$746,700

Median Home Value

Market

Vacancy Rate% for Office in West region

11% 2019

14.1% 2020

15.5% 2021

17.2% 2022

19.9% 2023

21% 2024

20.8% 2025

Questions? Ask Rey

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Frequently Asked Questions

What type of property is this?

Shopping center - The center offers second-floor offices, substantial parking, and multiple occupied tenant spaces within a shopping center setting.

Where is this shopping center located?

The property is located at 41-1537 Kalanianaole Highway Waimanalo, HI.

What is the asking price?

The asking price for this property is $10,500,000.

What are key features of this property?

This property features: Approximately 36,000 square feet of leasable area; Two contiguous fee simple parcels totaling approximately 2.2 acres; Includes 6,300 sq. ft. of second floor offices