Renovated Three-Unit Multifamily
For Sale
$737,000
76 E Palai St, Hilo, HI 96720
Separate electric metering and carports serve three leased residential units.
Property Size2,092 SF
Price / SF$352.29
Days on Market130
Property Features for 76 E Palai St
General Information
Standard status
Active
Size
2,092 SF
Property subtype
Residential Income
Additional Details
Utilities to Site
Yes
Multifamily Units
3
Taxes and HOA fees
Annual Taxes
$3,705
Amenities
carports
Building Details
Buildings
3
Listing Agency:
Big Island Properties
(808) 345-2202
Listed By:
Patricia Summers
(808) 345-2202
Source:
Exprealty
Added: Apr 14
Changed: Aug 20
Last Checked: Aug 20 at 2:03PM
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 Big Island Properties
Investment Insights
Based on property information with market context.
This multifamily property comprises three separate rental units totaling 2,092 square feet, with carports serving the residences. The units are renovated and currently rented. Improvements include new roofing, interior and exterior paint, flooring, lighting, fans, hardware, faucets, bathrooms, windows in unit B, and quartz countertops in unit B. Additional carpentry work was completed throughout, and fumigation has been performed.
Each unit has its own electric meter installed by HELCO. The three structures were built in 1976 and are permitted under the Hawaii County building code in effect at that time. They are recognized as a legal non-conforming use that does not require a variance from Hawaii County. The property is held under one TMK number and is located at 76 E Palai St in Hilo, Hawaii. Subdivision is identified as a possible option in the property information.
Each unit has its own electric meter installed by HELCO. The three structures were built in 1976 and are permitted under the Hawaii County building code in effect at that time. They are recognized as a legal non-conforming use that does not require a variance from Hawaii County. The property is held under one TMK number and is located at 76 E Palai St in Hilo, Hawaii. Subdivision is identified as a possible option in the property information.
Key Highlights
- Three separate rental units totaling 2,092 square feet
- All units renovated and currently rented
- Three permitted structures built in 1976
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
$28,736
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
3.90%
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%
$574,720
$574.7K
Cap Rate 7%
$410,514
$410.5K
Cap Rate 9%
$319,289
$319.3K
Market Conditions
NOI Build-Up for 2,092 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
$54.0K $25.80/SF
− Vacancy
−$1.7K −$0.83/SF
EGI
$52.2K $24.97/SF
− OpEx
−$23.5K −$11.24/SF
NOI
$28.7K $13.74/SF
Area
Hawaii County, HI
Vacancy
3.20%
Lease Rate
$25.80 /SF/Yr
Expense Ratio
45.00%
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%
$574,720
Cap Rate 7%
$410,514
Cap Rate 9%
$319,289
Alternative Uses
Best Use
Apartment 5plus
$410.5K
$359.2K – $478.9K
NOI $28,736 @ 7.0% cap · market cap 3.90%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$714.0K
$624.7K – $833.0K
NOI $49,977 @ 7.0% cap · market cap 6.78%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
3
Residential units
Yes
Utilities to site
Location Intelligence
Demographics for 96720, HI
46,615
Population
19,826
Households
2.4
Avg Household Size
43
Median Age
34%
College-Educated
95%
High-School Grad
287.8 sq mi
ZIP Area
162
Density / Sq Mi
$78,537
Median Household Income
$41,268
Median Earnings
$1,346
Median Rent
$458,100
Median Home Value
Market
Vacancy Rate% for Multifamily in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Multifamily property - Separate electric metering and carports serve three leased residential units.
Where is this multifamily property located?
The property is located at 76 E Palai St Hilo, HI.
What is the asking price?
The asking price for this property is $737,000.
What are key features of this property?
This property features: Three separate rental units totaling 2,092 square feet; All units renovated and currently rented; Three permitted structures built in 1976
