Waimea Town Investment
For Sale
$4,500,000
65-1291 KAWAIHAE RD, Kamuela, HI 96743
Two buildings on nearly an acre with highway frontage.
Property Size11,615 SF
Lot Size0.99 Acres
Price / SF$387.43
Days on Market151
Property Features for 65-1291 KAWAIHAE RD
General Information
Standard status
Active
Size
11,615 SF
Lot size
0.99 Acres
Property subtype
Commercial
Taxes and HOA fees
Annual Taxes
$29,898
Building Details
Year Built
1910
Listing Agency:
COMPASS
(808) 378-5447
Listed By:
ERIK JACOBSON · License #RB-21678
Source:
Corcoran
Added: Apr 2
Changed: Aug 27
Last Checked: Aug 29 at 8:46AM
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 COMPASS
Investment Insights
Based on property information with market context.
This unique property, located in Waimea Town, presents an exceptional investment opportunity. Zoned CV 7.5, the property includes two distinct buildings situated on nearly an acre of prime real estate with direct highway frontage. The larger building, constructed in 1999, features 16 units, offering significant income potential. Complementing this is a charming historic landmark home built in 1910, adding character and versatility to the portfolio. The property includes two parking lots and benefits from a highly visible location on Kawaihae Road, positioning it well for a variety of business ventures. The property has 11615 square feet of space. Both buildings are currently at full occupancy.
Key Highlights
- High income potential with 16 units in a building constructed in 1999.
- Prime real estate location with direct highway frontage on Kawaihae Road.
- Zoned CV 7.5, suitable for a variety of business ventures.
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
$219,197
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
4.87%
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%
$4,383,940
$4.4M
Cap Rate 7%
$3,131,386
$3.1M
Cap Rate 9%
$2,435,522
$2.4M
Market Conditions
NOI Build-Up for 11,615 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
$383.3K $33.00/SF
− Vacancy
−$32.6K −$2.81/SF
EGI
$350.7K $30.20/SF
− OpEx
−$131.5K −$11.32/SF
NOI
$219.2K $18.87/SF
Area
Hawaii County, HI
Vacancy
8.50%
Lease Rate
$33.00 /SF/Yr
Expense Ratio
37.50%
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%
$4,383,940
Cap Rate 7%
$3,131,386
Cap Rate 9%
$2,435,522
Alternative Uses
Best Use
Mixed Use
$3.13M
$2.74M – $3.65M
NOI $219,197 @ 7.0% cap · market cap 4.87%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$3.96M
$3.47M – $4.62M
NOI $277,478 @ 7.0% cap · market cap 6.17%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Demographics for 96743, HI
13,339
Population
6,690
Households
2
Avg Household Size
44
Median Age
42%
College-Educated
95%
High-School Grad
292.3 sq mi
ZIP Area
46
Density / Sq Mi
$98,177
Median Household Income
$51,000
Median Earnings
$2,023
Median Rent
$724,700
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Mixed-use property - Two buildings on nearly an acre with highway frontage.
Where is this mixed-use property located?
The property is located at 65-1291 KAWAIHAE RD Kamuela, HI.
What is the asking price?
The asking price for this property is $4,500,000.
What are key features of this property?
This property features: High income potential with 16 units in a building constructed in 1999.; Prime real estate location with direct highway frontage on Kawaihae Road.; Zoned CV 7.5, suitable for a variety of business ventures.
