NNN Office Building with
For Sale
$3,238,000
891 Ululani St, Hilo, HI 96720
Two-story, single-tenant property with ADA-compliant space, private offices, meeting rooms, and secure paved parking.
Property Size11,996 SF
Price / SF$269.92
Days on Market542
Property Features for 891 Ululani St
General Information
Standard status
Active
Size
11,996 SF
Elevators
Yes
Property subtype
Office
Additional Details
Cap Rate
6.78%
Road Access
Yes
Amenities
private offices
conference rooms
flexible-use spaces
central reception areas
restrooms
showers
laundry room
A/C - Zone, Air Cond. Unit
3
CG-7.5
Covered, Unassigned.
Interior Lot, Paved Road, Country Road, Clear lot.
Building Details
Year Built
1995
Buildings
1
Stories
2
Tenancy
Single
Owner Occupied
No
Listing Agency:
Pacific Image Properties
(808) 386-5548
Listed By:
Pacific Image Properties
(808) 386-5548
Source:
Xome
Added: Mar 8, 2025
Changed: Aug 31
Last Checked: Aug 31 at 1:21PM
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 Pacific Image Properties
Investment Insights
Based on property information with market context.
This two-story commercial property contains approximately 11,996 square feet of ADA-compliant interior space and is leased to a single tenant under a long-term True Triple Net structure. The building includes an elevator, private offices, conference rooms, flexible-use areas, central reception areas on both floors, men’s and women’s restrooms, ground-floor showers, and a laundry room with washer/dryer hookups. A new air conditioning system was installed in 2024, and secure paved off-street parking is provided.
The property is located at 891 Ululani St in downtown Hilo, directly across from the Hilo Police Department and near government offices, legal centers, and medical facilities. It is outside the Tsunami Evacuation Zone and has a south-facing entrance. The tenant is responsible for property taxes and maintenance costs, while scheduled lease increases are tied to the Honolulu annual CPI. The current annual cap rate is 6.78%.
The property is located at 891 Ululani St in downtown Hilo, directly across from the Hilo Police Department and near government offices, legal centers, and medical facilities. It is outside the Tsunami Evacuation Zone and has a south-facing entrance. The tenant is responsible for property taxes and maintenance costs, while scheduled lease increases are tied to the Honolulu annual CPI. The current annual cap rate is 6.78%.
Key Highlights
- Approximately 11,996 square feet of ADA‑compliant interior space
- Long‑term True Triple Net lease with a single tenant
- Current annual cap rate of 6.78%
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
$170,772
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
5.27%
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%
$3,415,440
$3.4M
Cap Rate 7%
$2,439,600
$2.4M
Cap Rate 9%
$1,897,467
$1.9M
Market Conditions
NOI Build-Up for 11,996 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
$266.3K $22.20/SF
− Vacancy
−$38.6K −$3.22/SF
EGI
$227.7K $18.98/SF
− OpEx
−$56.9K −$4.75/SF
NOI
$170.8K $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%
$3,415,440
Cap Rate 7%
$2,439,600
Cap Rate 9%
$1,897,467
Alternative Uses
Best Use
Office B
$2.44M
$2.13M – $2.85M
NOI $170,772 @ 7.0% cap · market cap 5.27%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$4.09M
$3.58M – $4.78M
NOI $286,580 @ 7.0% cap · market cap 8.85%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Single-tenant
Tenancy
Yes
Paved road access
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 Office in West region
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
NNN property - Two-story, single-tenant property with ADA-compliant space, private offices, meeting rooms, and secure paved parking.
Where is this nnn property located?
The property is located at 891 Ululani St Hilo, HI.
What is the asking price?
The asking price for this property is $3,238,000.
What are key features of this property?
This property features: Approximately 11,996 square feet of ADA‑compliant interior space; Long‑term True Triple Net lease with a single tenant; Current annual cap rate of 6.78%
