Honolulu Office Building For
For Sale
$4,700,000
1542 Young Street, Honolulu, HI 96826
Three-story Honolulu building with versatile space and redevelopment potential.
Property Size14,718 SF
Price / SF$319.34
Days on Market722
Property Features for 1542 Young Street
General Information
Standard status
Active
Size
14,718 SF
Property subtype
Industrial
Taxes and HOA fees
Annual Taxes
$53,633
Building Details
Building Size
14,718 SF
Year Built
1986
Listing Agency:
TARO FUJISAWA HAWAII FUDOSAN
Listed By:
Taro Fujisawa · License #RB-23668
(808) 800-2421
Source:
Careyluxury
Added: Sep 13, 2024
Changed: Sep 4
Last Checked: Sep 4 at 12:16PM
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 TARO FUJISAWA HAWAII FUDOSAN
Investment Insights
Based on property information with market context.
The Imperial Business Plaza, located at 1542 Young St. Honolulu, HI 96826, is a three-story, free-standing building offering 14,718 square feet of versatile space. The property features ground-level parking and two floors currently utilized for office use. Zoned BMX-3 and situated in McCully, this masonry building is ideal for an owner-user or potential multi-family redevelopment. The property has 27 parking stalls and is located just off Kalakaua Ave, providing easy access to the H-1 Freeway. It is also within 5 minutes of downtown Honolulu, Waikiki, and the University of Hawaii.
Key Highlights
- Prime Honolulu location, easy access to H‑1 Freeway, downtown, Waikiki, and University of Hawaii.
- Fee‑simple, free‑standing three‑story building with 14,718 SF of versatile space.
- Potential for multi‑family redevelopment under Bill 7.
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
$376,689
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
8.01%
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%
$7,533,780
$7.5M
Cap Rate 7%
$5,381,271
$5.4M
Cap Rate 9%
$4,185,433
$4.2M
Market Conditions
NOI Build-Up for 14,718 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
$574.0K $39.00/SF
− Vacancy
−$71.8K −$4.88/SF
EGI
$502.3K $34.13/SF
− OpEx
−$125.6K −$8.53/SF
NOI
$376.7K $25.59/SF
Area
Honolulu County, HI
Vacancy
12.50%
Lease Rate
$39.00 /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%
$7,533,780
Cap Rate 7%
$5,381,271
Cap Rate 9%
$4,185,433
Alternative Uses
Best Use
Office B
$5.38M
$4.71M – $6.28M
NOI $376,689 @ 7.0% cap · market cap 8.01%
Second Best
Mixed Use
$3.63M
$3.17M – $4.23M
NOI $253,886 @ 7.0% cap · market cap 5.40%
Theoretical Best
Specialty Retail
$5.96M
$5.22M – $6.96M
NOI $417,404 @ 7.0% cap · market cap 8.88%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Demographics for 96826, HI
30,092
Population
16,564
Households
1.8
Avg Household Size
44
Median Age
38%
College-Educated
91%
High-School Grad
1.1 sq mi
ZIP Area
27,356
Density / Sq Mi
$67,743
Median Household Income
$44,393
Median Earnings
$1,604
Median Rent
$485,200
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?
Office building - Three-story Honolulu building with versatile space and redevelopment potential.
Where is this office building located?
The property is located at 1542 Young Street Honolulu, HI.
What is the asking price?
The asking price for this property is $4,700,000.
What are key features of this property?
This property features: Prime Honolulu location, easy access to H‑1 Freeway, downtown, Waikiki, and University of Hawaii.; Fee‑simple, free‑standing three‑story building with 14,718 SF of versatile space.; Potential for multi‑family redevelopment under Bill 7.
