Kailua Kona Medical Office
For Sale
$2,700,000
75-137 Hualalai Road, Kailua Kona, HI 96740
Prime commercial opportunity in the heart of Kailua Kona.
Property Size5,400 SF
Lot Size0.76 Acres
Price / SF$500
Days on Market169
Property Features for 75-137 Hualalai Road
General Information
Standard status
Active
Size
5,400 SF
Class
C
Lot size
0.76 Acres
Property subtype
Office
Building Details
Building Size
5,400 SF
Year Built
1956
Listing Agency:
GO COMMERCIAL, LLC
(808) 987-6446
Listed By:
Gregory Ogin · License #HI #RB-16053
(808) 987-6446
Source:
Svn
Added: Mar 6
Changed: Aug 21
Last Checked: Aug 22 at 4:45AM
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 GO COMMERCIAL, LLC
Investment Insights
Based on property information with market context.
This strategically located office building in Hawaii County, HI, offers an exceptional investment opportunity. The property features 5,400 SF of space and is currently 100% occupied as a medical office. This presents a compelling opportunity for an office building owner-user or investor, as the current medical operation transitions to retirement. Constructed in 1956 and renovated in 1976, the two-story building sits on 33,118 square feet of fee simple land and is zoned V-.75, providing a flexible framework for various business ventures. The property is centrally located in the heart of Kailua Kona on Hualalai Road, across from the Kona Public Library. It benefits from high visibility and vehicle and foot traffic. The location is adjacent to Alii Drive and close to the ocean, restaurants, retailers, and professional businesses. Onsite, gated private parking is available for employees and customers, with the ability to create numerous parking stalls.
Key Highlights
- 100% Occupancy as a Medical Office: Provides immediate income.
- Prime Kailua Kona Location: Centrally located with high visibility.
- Large Fee Simple Land Parcel: 33,118 square feet offers potential.
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
$76,873
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
2.85%
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%
$1,537,460
$1.5M
Cap Rate 7%
$1,098,186
$1.1M
Cap Rate 9%
$854,144
$854.1K
Market Conditions
NOI Build-Up for 5,400 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
$119.9K $22.20/SF
− Vacancy
−$17.4K −$3.22/SF
EGI
$102.5K $18.98/SF
− OpEx
−$25.6K −$4.75/SF
NOI
$76.9K $14.24/SF
Area
Hawaii County, HI
Vacancy
14.50%
Lease Rate
$22.20 /SF/Yr
Expense Ratio
25.00%
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%
$1,537,460
Cap Rate 7%
$1,098,186
Cap Rate 9%
$854,144
Alternative Uses
Best Use
Office B
$1.10M
$960.9K – $1.28M
NOI $76,873 @ 7.0% cap · market cap 2.85%
Second Best
Healthcare Medical
$1.07M
$933.9K – $1.25M
NOI $74,708 @ 7.0% cap · market cap 2.77%
Theoretical Best
Specialty Retail
$1.84M
$1.61M – $2.15M
NOI $129,004 @ 7.0% cap · market cap 4.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Demographics for 96740, HI
38,234
Population
19,119
Households
2
Avg Household Size
45
Median Age
35%
College-Educated
94%
High-School Grad
242.4 sq mi
ZIP Area
158
Density / Sq Mi
$94,091
Median Household Income
$42,605
Median Earnings
$1,692
Median Rent
$730,600
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?
Medical Office Space - Prime commercial opportunity in the heart of Kailua Kona.
Where is this medical office space located?
The property is located at 75-137 Hualalai Road Kailua Kona, HI.
What is the asking price?
The asking price for this property is $2,700,000.
What are key features of this property?
This property features: 100% Occupancy as a Medical Office: Provides immediate income.; Prime Kailua Kona Location: Centrally located with high visibility.; Large Fee Simple Land Parcel: 33,118 square feet offers potential.
