Building Details

Year Built 1925

Buildings 1

Construction Hawaiian plantation-style

Tenancy Multi

Listing Agency: Kohala Coast Properties h***@earthlink.net Show Phone

Listed By: Kit Muhs · License #RB-22486 Show Phone

Source: Exprealty

Added: Jul 1 Changed: Aug 20 Last Checked: Aug 20 at 11:37AM

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Investment Insights

Based on property information with market context.

Built in 1925, this mixed-use property combines a retail storefront and café with a separate office and a furnished 1-BR/1-BA apartment. The building contains 2,784 square feet on a 10,479-square-foot parcel and features koa and redwood construction associated with Hawaiian plantation-style architecture. The real estate offering includes the land and building; the operating art gallery business is offered separately.

Recent improvements include gallery air-conditioning units installed in 2024, electrical work completed in 2025, café flooring and custom cabinetry, and a septic conversion from a cesspool in 2011. One bathroom was updated to ADA requirements in 2024, while the second received a new vanity. The apartment includes a refrigerator, washer/dryer, bed frame, mattress, and other furnishings.

The property is at 48-5416 Kukuihaele Rd in Honokaa, a short distance from Honokaa town and approximately 1/2 mile from the Waipio Valley overlook. Commercial zoning supports a range of uses, and the office and apartment are currently leased.

Key Highlights

• 1925‑built mixed‑use building with koa and redwood construction
• 2,784 SF building on a 10,479 sq. ft. parcel
• Retail storefront, café, separate office, and 1‑BR/1‑BA apartment

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

$60,130

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

7.71%

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%

$1,202,600 $1.2M

Cap Rate 7%

$859,000 $859.0K

Cap Rate 9%

$668,111 $668.1K

Market Conditions

NOI Build-Up for 2,784 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

$91.9K $33.00/SF

− Vacancy

−$6.0K −$2.15/SF

EGI

$85.9K $30.86/SF

− OpEx

−$25.8K −$9.26/SF

NOI

$60.1K $21.60/SF

Area

Hawaii County, HI

Vacancy

6.50%

Lease Rate

$33.00 /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%

$1,202,600

Cap Rate 7%

$859,000

Cap Rate 9%

$668,111

Alternative Uses

Best Use

Retail

$859.0K

$751.6K – $1.00M (±1% cap)

NOI $60,130 @ 7.0% cap · market cap 7.71%

Second Best

Mixed Use

$750.6K

$656.7K – $875.7K (±1% cap)

NOI $52,539 @ 7.0% cap · market cap 6.74%

Theoretical Best

Specialty Retail

$950.1K

$831.4K – $1.11M (±1% cap)

NOI $66,509 @ 7.0% cap · market cap 8.53%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Property Profile

Current Use

Waipi'o Na'alapa Stables Horseback Riding Service Waipio Valley Artworks Art Gallery We Buy Your ... Real Estate Agency Waipio Valley Shuttle Freight Service

Lease Details

1

Office units

Multi-tenant

Tenancy

Location Intelligence

Demographics for 96727, HI

4,990

Population

1,642

Households

3

Avg Household Size

45

Median Age

24%

College-Educated

91%

High-School Grad

189.5 sq mi

ZIP Area

26

Density / Sq Mi

$83,534

Median Household Income

$37,124

Median Earnings

$1,218

Median Rent

$559,900

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

Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.

What type of property is this? Where is this mixed-use properties 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?

Mixed-use property - Commercial property combining retail, café, office, and furnished residential space in a well-maintained plantation-style building.

Where is this mixed-use property located?

The property is located at 48-5416 Kukuihaele Rd Honokaa, HI.

What is the asking price?

The asking price for this property is $780,000.

What are key features of this property?

This property features: 1925‑built mixed‑use building with koa and redwood construction; 2,784 SF building on a 10,479 sq. ft. parcel; Retail storefront, café, separate office, and 1‑BR/1‑BA apartment