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 aloha@hawaiisands.com

David “Dave” Moyer

Principal Broker, RB-18853 Realtor, GRI, ABR, e-Pro 808.379.3016 dmoyer@hawaiisands.com

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 awatson@hawaiisands.com