Building Details

Year Built 1957

Buildings 1

Tenancy Multi

Listing Agency: HAWAII & PACIFIC COMMERCIAL PROPERTIES Show Phone

Listed By: GLENNON T GINGO

Source: Corcoran

Added: Sep 15 Changed: Sep 16 Last Checked: Sep 16 at 2:00PM

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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 HAWAII & PACIFIC COMMERCIAL PROPERTIES

Investment Insights

Based on property information with market context.

The property is a retail-oriented storefront asset with four commercial rental units. All four units are currently occupied under lease agreements, creating a multi-suite commercial configuration within one building. On-site parking serves both the businesses and their customers.

The building fronts the main highway at 81-6629 Hawaii Belt Road in Kealakekua, Hawaii. Kona Community Hospital is 5 minutes away, adding a nearby healthcare destination to the surrounding context. Constructed in 1957, the property combines an established commercial building with active occupancy and customer parking.

Key Highlights

• 4 commercial rental units within one storefront property
• All units currently occupied under lease agreements
• Fronts the main highway at 81‑6629 Hawaii Belt Road

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

$61,426

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

6.84%

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%

$1,228,520 $1.2M

Cap Rate 7%

$877,514 $877.5K

Cap Rate 9%

$682,511 $682.5K

Market Conditions

NOI Build-Up for 2,844 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

$93.9K $33.00/SF

− Vacancy

−$6.1K −$2.15/SF

EGI

$87.8K $30.86/SF

− OpEx

−$26.3K −$9.26/SF

NOI

$61.4K $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%

$1,228,520

Cap Rate 7%

$877,514

Cap Rate 9%

$682,511

Alternative Uses

Best Use

Retail

$877.5K

$767.8K – $1.02M (±1% cap)

NOI $61,426 @ 7.0% cap · market cap 6.84%

Second Best

—

—

no second resolved use

Theoretical Best

Specialty Retail

$970.6K

$849.3K – $1.13M (±1% cap)

NOI $67,942 @ 7.0% cap · market cap 7.57%

Zoning and permitted uses should be independently verified with authorities.

Property Analytics

Current Use

Storefront properties

Lease Details

100%

Occupancy

Multi-tenant

Tenancy

Location Intelligence

Demographics for 96750, HI

3,806

Population

1,220

Households

3.1

Avg Household Size

47

Median Age

28%

College-Educated

89%

High-School Grad

19.8 sq mi

ZIP Area

192

Density / Sq Mi

$86,293

Median Household Income

$42,024

Median Earnings

$1,076

Median Rent

$613,800

Median Home Value

Market

Vacancy Rate% for Retail in West region

7% 2020

6.3% 2021

5.5% 2022

5.3% 2023

5.5% 2024

5.8% 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 storefront properties located? What is the asking price? Find similar properties What are key features of this property?

Frequently Asked Questions

What type of property is this?

Storefront property - Four commercial suites are leased and occupied, with parking available for tenants and customers.

Where is this storefront property located?

The property is located at 81-6629 HAWAII BELT RD Kealakekua, HI.

What is the asking price?

The asking price for this property is $898,000.

What are key features of this property?

This property features: 4 commercial rental units within one storefront property; All units currently occupied under lease agreements; Fronts the main highway at 81‑6629 Hawaii Belt Road