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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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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What type of property is this? Where is this shopping centers located? What is the asking price? Find similar properties What are key features of this property?

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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