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2319 Ala Wai Boulevard
The Ala Wai
21 UNIT APARTMENT BUILDING FOR SALE
Investment Summary
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The Ala Wai consists of two (2) multi-family buildings containing twenty-one (21) apartments, ten (10) parking stalls, and coin operated community laundry. Centrally located in Waikiki, the state’s most popular tourist destination, The Ala Wai is located on a highly traveled roadway with convenient access to amenities such as hotels, restaurants, shopping, entertainment, recreational areas and world famous Waikiki Beach.
Building 1: Year Built: 1947 | Effective Year Built: 1970:
A three (3) story low-rise masonry/CMU walk-up containing seven (7) apartments numbered A through G. Two (2) one bed, one bath apartments, four (4) studio, one bath apartments, and one (1) two bed, one bath apartment. Approximately 3,120 interior square feet.
Building 2: Year Built: 1953 | Effective Year Built: 1978:
A four (4) story low-rise walk-up masonry skeleton/prefab with curtain walls containing fourteen (14) apartments numbered 101 through 404. Currently configured as five (5) one bed, one bath apartments and nine (9) two bed, one bath apartments. Approximately 4,678 interior square feet.
The offering includes fee simple interest in both buildings together with 7,907 square feet of land zoned apartment precinct. With a stable long-term tenant mix, this is a relatively low-risk investment opportunity and priced accordingly with plenty of upside as rents have not been increased since March 2020 due to the Governor’s 21st Proclamation related to Covid-19.
For more information visit “The Ala Wai” on our site by scanning the QR code here or visiting: www.TheAlaWai.com
• Virtual Tours of the Units
• Photos and Videos
• Supplemental Documents
2319 Ala Wai Blvd.
* Based on trailing 12 month cash-flow for the property as of September 3, 2021. This information is deemed reliable, but not guaranteed. All information should be independently verified.
Building 1Building 2
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Asking Price $ 8,000,000.00 (FS)
Address 2319 Ala Wai Blvd., Honolulu, HI 96815
Parcel TMK No (1) 2-6-021-047-0000
Land Area 7,907 square feet
Zoning Waikiki Apartment Precinct
Flood Zone AE, Flood Zone Date: 01/19/2011
Total Number of Units: 21
Current Estimated Gross Income $ 373,726.89*
Current Estimated NOI $ 229,755.00*
Estimated IRR 5.54%*
Estimated CAP Rate 2.88%*
Estimated Cash-on-Cash Return 142.83%*
INVESTMENT HIGHLIGHTS
• Fee Simple 21 unit apartment building
• Stable long-term tenant mix
• Very Desirable Waikiki Location
• 100% Occupancy, Easy to Rent
• Professional Management in Place
• Potential for increased ROI
The Pro-Forma Based on Historical Data
* Projections based on 8% annual rent increases starting in 2022 and a 3-5% increase in expenses.
HISTORICAL PROJECTED
Trailing 1yr FY 2022 FY 2023 FY2024
REVENUE
Gross Rent: $ 354,484.68 $ 382,843.45 $ 413,470.93 $ 446,548.61
Laundry Receipts: $ 3,904.26 $ 3,905.00 $ 3,905.00 $ 3,905.00
Parking Income: $ 8,258.33 $ 12,000.00 $ 12,000.00 $ 12,000.00
Other: $ 7,079.62 $ 7,000.00 $ 7,000.00 $ 7,000.00
Potential Gross Revenue: $ 373,726.89 $ 405,748.45 $ 436,375.93 $ 469,453.61
EXPENSES
Property Management: $ 30,592.26 $ 30,627.48 $ 33,077.67 $ 35,723.89
Insurance: $ 21,168.00 $ 21,803.04 $ 22,457.13 $ 23,130.85
RPT: $ 14,899.50 $ 15,187.90 $ 15,947.30 $ 16,744.66
GET: $ 16,817.71 $ 18,258.68 $ 19,636.92 $ 21,125.41
Utilites: $ 36,348.48 $ 37,438.93 $ 38,562.10 $ 39,718.97
CapEx & Other: $ 24,145.94 $ 24,870.32 $ 25,616.43 $ 26,384.92
Total Expenses: $ 143,971.89 $ 148,186.35 $ 155,297.55 $ 162,828.69
Net Operating Income: $ 229,755.00 $ 257,562.11 $ 281,078.38 $ 306,624.91
NOI Margin: 61.48% 63.48% 64.41% 65.32%
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AN OPPORTUNITY TO ADD VALUE Visiting the Past
The Ala Wai is currently rented below
market value due to a rent freeze
initiated by the Governor’s Emergency
Proclamation #21.
This is an amazing opportunity for the
right investor to create robust cash flow
by offering month-to-month furnished
rentals for a booming visitor industry.
Potential guests include:
• Extended Stay Tourism
• University of Hawaii and Hawaii
Pacific University Students
• Incoming/outgoing military
personnel and their families
• Traveling Nurses
• DOD Contractors
• Honolulu Convention Center
Visitors
• Transitioning Residents
Furnished short-term rentals in Waikiki
often rent for up to twice as much as a
long-term rentals. With this in mind, The
Ala Wai could realize an earnings
potential up to $8.00 per square foot.
As a short term rental property
additional revenue streams from daily
parking, pet fees, increased laundry
receipts, and more could provide an
impressive ROI.
See a pro-forma estimating short-term rental income potential on the next page.
The Pro-Forma Based on Potential Short Term Rentals
The following estimations are based on: $8.00 per square foot annual rent at 80% occupancy increasing 5% per year and 3-5% increase in expenses; Laundry income based on $3/wash/dry; Parking income based on $20/day at 80% occupancy.
Hawaii Sands Realty makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information contained herein, including, but not limited to warranties of content, accuracy, and reliability. Buyers shall perform their own due diligence.
Estimated as Short Term Rentals
FY2023 FY2024 FY2025
REVENUE
Gross Rent: $ 598,886.40 $ 628,830.72 $ 660,272.26
Laundry Receipts: $ 7,800.00 $ 7,800.00 $ 7,800.00
Parking Income: $ 58,400.00 $ 58,400.00 $ 58,400.00
Other: $ 7,000.00 $ 7,000.00 $ 7,000.00
Potential Gross Revenue: $ 672,086.40 $ 702,030.72 $ 733,472.26
EXPENSES
Property Management: $ 71,866.37 $ 75,459.69 $ 79,232.67
Insurance: $ 21,168.00 $ 21,803.04 $ 22,457.13
RPT: $ 15,187.90 $ 15,947.30 $ 16,744.66
GET: $ 30,243.89 $ 31,591.38 $ 33,006.25
TAT: $ 61,385.86 $ 64,455.15 $ 67,677.91
Utilites: $ 40,000.00 $ 41,200.00 $ 42,436.00
CapEx & Other: $ 20,000.00 $ 20,600.00 $ 21,218.00
Total Expenses: $ 259,852.01 $ 271,056.55 $ 282,772.62
Net Operating Income: $ 412,234.39 $ 430,974.17 $ 450,699.64
NOI Margin: 61.34% 61.39% 61.45%
COMPARISON (Short vs. Long Term)
Less: Net Operating Incomes based on historical values:
$ 131,156.00 $ 124,349.25
Potential Increase: 31.82% 28.85%
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AN OPPORTUNITY TO ADD VALUE Short-Term vs. Long-Term Rentals
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AN OPPORTUNITY TO ADD VALUE Renovate
Building 2, Unit 102
Building 2, Unit 401
Building 2, Unit 301
Being a skeleton frame property (no interior load bearing walls) with high ceilings and curtain walls, The Ala Wai holds great potential for inexpensive renovations to make it an architectural showcase
SAMPLE UNIT FLOOR PLANS Building 1: Year Built: 1947 | Effective Year Built: 1970
A three (3) story low-rise masonry/CMU walk-up containing seven (7) apartments numbered A through G. Two (2) one bed, one bath apartments, four (4) studio, one bath apartments, and one (1) two bed, one bath apartment. Approximately 3,120 interior square feet.
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Building 1, Unit D
Studio / 1 Bath
Gross Internal Area: 250 sq. ft
Building 1, Unit B
2 Bedroom / 1 Bath
Gross Internal Area: 554 sq. ft
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Building 1, Unit G
2 Bedroom / 1 Bath
Gross Internal Area: 984 sq. ft
SAMPLE UNIT FLOOR PLANS Building 2: Year Built: 1953 | Effective Year Built: 1978
A four (4) story low-rise walk-up masonry skeleton/prefab with curtain walls containing fourteen (14) apartments numbered 101 through 404. Currently configured as five (5) one bed, one bath apartments and nine (9) two bed, one bath apartments. Approximately 4,678 interior square feet.
Building 2, Unit 204
2 Bedroom / 1 Bathroom
Gross Internal Area: 815 sq. ft
Building 2, Unit 102
1 Bedroom / 1 Bathroom
Gross Internal Area: 618 sq. ft
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SAMPLE UNIT FLOOR PLANS Building 2: Year Built: 1953 | Effective Year Built: 1978
Building 2, Unit 303
2 Bedroom / 1 Bathroom
Gross Internal Area: 665 sq. ft
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Building 2, Unit 401
2 Bedroom / 1 Bath
Gross Internal Area: 684 sq. ft
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SAMPLE UNIT FLOOR PLANS Building 2: Year Built: 1953 | Effective Year Built: 1978
Building 2, Unit 301
1 Bedroom / 1 Bathroom
Gross Internal Area: 670 sq. ft
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10Morning Reflection on the Ala Wai Canal
LOCATION HIGHLIGHTS
• Located in the Waikiki
Special District overlooking
the Ala Wai Canal and Golf
Course
• “The Ala Wai” is located in
close proximity to:
• Ala Moana Shopping
Center
• The Royal Hawaiian
Shopping Center
• International Market Place
• Kapiolani Park
• Honolulu Convention Center
• University of Hawaii at Manoa
• Convenient access to mass transit,
employment, Ala Moana Beach
Park, Kakaako, and Downtown
Honolulu
• Average of 38,756 vehicles pass
this property in a 24-hour period.
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LOCATION HIGHLIGHTS
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The Ala Wai
2319 Ala Wai Blvd.
Honolulu, HI 96815
444 Nahua
Holiday Surf
Ilima
International MarketplaceWaikiki Business Plaza
Hyatt Regency
Ala Wai Golf Course
11Kaimana Beach Park in Waikiki
DEMOGRAPHIC INFORMATION FOR WAIKIKI
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• Permanent Population: 25,261
• Median Age: 43.8
• Average Household Income: $84,816.00
Source: US Census, Hawaii DBEDT
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• The Waikiki long-term
rental market has
rebounded since 2020 and
rents are up 17.6% year
over year
• The average number of
days on market for a rental
is 14, a decrease of 46.2%
year over year.
• The average rental price
per square foot if $4, a
33.3% increase year over
year.
• Average number of
months rental supply is 1.5,
a 70.6% decrease year over
year.
Source: Honolulu Board of Realtors as of July 2021
OTHER RENTAL HIGHLIGHTS
Median Rent of All types 0 - 1 Bedrooms 2 Bedrooms
$2,000.00, $4/sf $ 1,898.00, $4/sf $ 2,795.00, $3/sf
There is increased demand for long-term housing in the Waikiki Apartment Precinct. New
condominium developments have been focused on luxury market units, with limited inventory
for affordable housing.
POSITIVE RENTAL MARKET INDICATORS
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Hawaii Sands Realty License: RB-21815
1888 Kalakaua Ave #C312 Honolulu, HI 96815
POB 201443 Honolulu, HI 96820 Office/Fax: 808.664.3084 [email protected]
David “Dave” Moyer
Principal Broker, RB-18853 Realtor, GRI, ABR, e-Pro 808.379.3016 [email protected]
For more information visit “The Ala Wai” on our site by scanning the QR code here or visiting:
www.TheAlaWai.com
• Virtual Tours of the Units
• Photos and Videos
• Supplemental Documents
Alex Watson
Partner | Broker | RB-23517 Realtor 808.725.2521 [email protected]