2144 Palolo Ave Honolulu, HI 96816

Property Details for 2144 Palolo Ave

Year built

1947

Property size

5,416 SF

Property type

Land

Property subtype

Apartment buildings

Description

This exceptional 8-unit apartment building, located in the heart of Honolulu's desirable Palolo Valley at 2144 Kauhana Street and 2141 Palolo Avenue (APN: 1-3-4-23-38&39), presents a compelling investment opportunity. The property boasts 5,416 square feet of building area on a 9,880 square foot lot, encompassing seven one-bedroom, one-bathroom units and a ground floor commercial space. Currently operating at 100% occupancy, the building offers immediate cash flow with significant upside potential. Built in 1947 and renovated in 1962, the property is classified as Class B. The asking price is $2,213,000, translating to $408.60 per square foot and $276,625 per unit, with a projected cap rate of 5.75%. The property's central location provides residents easy access to numerous amenities, including restaurants, shopping, and employment centers. A key feature is an included vacant R-5 zoned lot, currently used for parking, offering future development possibilities. A leaseback agreement is in place for the office and vacant yard space, allowing for planning and permitting of a new residential development during the lease term. This presents a unique opportunity to capitalize on existing income while pursuing future expansion. The current rents are approximately 7% below market value, indicating a substantial opportunity to increase profitability through renovations and market-rate adjustments. The combination of high occupancy, strong demand, and a flexible exit strategy makes this a highly attractive investment.