Strategically Positioned Between Downtown and Kaka‛ako
Kaka‛akoOffice Portfolio Opportunity
Brandon Bera (S), CCIM, SIORLic# RS-72793Office Services Division808 523 [email protected]
Karen Birkett (S) SIORLic# RS-50512Office Services Division808 523 [email protected]
Address598 Halekauwila
Street571 Quinn
Lane560 Halekauwila
Street576 Halekauwila
Street
Property Information
Asking Price $1,600,000 $6,250,000 $9,900,000 $1,400,000
Tenure Fee Simple (Leased Fee) Fee Simple Fee Simple Fee Simple
Land Area 5,042 sf 14,877 sf 16,020 sf 3,606 sf
Building Area 2,500 sf 14,200 sf 24,353 sf n/a
Zoning KAK KAK KAK KAK
TMK (1) 2-1-31:2 (1) 2-1-31:20 (1) 2-1-31:8 (1) 2-1-31:39
Portfolio Offerings
Plat Map
21
15
31
3724 39
19
18
10
1
8
20
38 33
2 305
32
12
29
49.00
29.51
52.1
0
15.53
R=30
30.7
0
107.42
105.
66
8.10
103.
33
78.4
7
74.6
7
85.05
109.27
R=10
69.63
52.3
7
48.99
259.
44
10.05
106.
50
R=20
88.0
9
192.
73
394.43
77.42
9.22
30.00
48.9
0
175.73
72.86
100.75
87.4
5
R=30
115.33
62.68
162.
37
102.74
110.70
39.31
160.52
70.1
0
81.1
0
72.02
100.
50
21.6
7
201.
28
53.7
0
10.5
7
104.68
118.
15
132.
36
R=20
100.00
7.42
160.
38
10.7
3
85.59 28.0
1
143.
90
87.73
70.83
187.00
71.3
9
180.00
171.
2296
.55
23.85
160.
1045.68
230.89
181.
29
6.10
149.74
20.00
25.2
0 R=1015.62
115.
00
73.3
8
67.2
0
46.86
50.07
90.0
3
115.37
53.0
1
78.53
63.00
22.95
50.60
20.13
R=1
347
98.2
0
110.
77
159.75
5.17
64.63
60.0
0
R=20 91.46
14.95
8.00
50.6
4
48.90
29.7
9
52.3
6
69.14
21.88
10.05
162.
37
49.4
9
87.78
22.0
1
62.7
6
362.73
67.3
8
20.00
R=30
64.00
104.
70
209.
00
100.38
10.00
46.84
47.1
9
10.0
0
212.89
138.93
175.
00
243.50
37.50
77.8
0
17.81
20.58 87.50
106.
14
2581 sf
16,020 sf
14,877 sf
49,384 sf
96,799 sf
11,705 sf
25,870 sf
3606 sf23 sf
64,705 sf
18,392 sf
17,885 sf5095
sf
14,952 sf
20,039 sf
5042 sf
11,207 sf
17,555 sf
75,714 sf
20,449 sf
(1587 sf)
(7524 sf)
(151
4 sf
)
(9040 sf)
(5628 sf)
(7639 sf)
(107
4 sf
)
(6765 sf)
(920 sf)
(34,078 sf)
(2665 sf)
(12,810 sf)
(215
4 sf
)
(8187 sf)
WAT
ER
PIPE
LIN
E E
SMT
"A
" [2
36 sf
]
RD. P
AR.
"21"
RD.
PAR
. "18
"
RD.
PAR.
"19
"
RD. PAR. "14"
RD. P
AR.
"20"
ING
RES
S
&
EG
RES
S
ESM
T
[145
2 sf
]
ING
RES
S
&
EG
RES
S
E
SMT
[178
5 sf
]
A
4-B
A
B
1-B-2
B
6-B
3
6-A
4-A
1-B-1
5
1-A-1
8
1-A-2
C
11
A
1
2
P
L
A
T
2
6
P L
A T
5 1
P L A T 3 2
P L A T 3 0
P L A T 4 8
P U N C H B O W L S T R E E T
Q U I N N L A N E
KE
AW
E
ST
RE
ET
S O U T H S T R E E T
Q U E E N S T R E E T
H A L E K A U W I L A S T R E E T
EXEC. ORDER NO. 2343
K A K A ' A K O F I R E S T A T I O N
STATE OFFICEBUILDING COMPLEX SITE
EXEC. ORDER NO. 335
EXEC. ORDERNO. 2161
LD. CT. APP. 1495
R. P. 7429, Mahele Aw. 61
R. P. 1
245,
L. C
.
Aw.
677
LD. CT. A
PP. 414
L. C
.
Aw.
729
Por.
R.
P.
5722
, L
. C.
Aw.
7
35
Por. L. C. Aw. 805
LD. CT. APP. 76
Grant
3550
LD. C
T. A
PP. 1488
L. C. Aw. 6489:1
L. C. Aw. 1082
LD.
CT.
APP.
1
264Grant 3495
LD.
C
T.
APP
.
1506
Grant 3568Grant 3634
LD. CT. A
PP. 560
LD.
CT.
APP.
345
SCALE: 1 INCH = 40 FEETFOR PROPERTY ASSESSMENT PURPOSES, PARCELS MAY NOT BE LEGALLY SUBDIVIDED LOTS - SUBJECT TO CHANGECOPYRIGHT CITY & COUNTY OF HONOLULU - ALL RIGHTS RESERVED 2016
Date:
11/01
/2016
lgs
POR. HONOLULU, OAHU, HAWAII.
FIRST TAXATION DIVISIONZONE SECTION PLAT
REAL PROPERTY ASSESSMENT DIVISIONTAX MAPS BRANCH
CITY & COUNTY OF HONOLULU
DEPARTMENT OF BUDGET & FISCAL SERVICES
TAX MAP
2 1 031
DROPPED PARCELS: 3, 4, 6, 7, 9, 11, 13,14, 16, 17, 22, 23, 25-28, 34-36
TRUE NORTH
Scale: 1 in. = 40 ft.
21
15
31
3724 39
19
18
10
1
8
20
38 33
2 305
32
12
29
49.00
29.5152
.10
15.53
R=30
30.7
0
107.42
105.
66
8.10
103.
33
78.4
7
74.6
7
85.05
109.27
R=10
69.63
52.3
7
48.99
259.
44
10.05
106.
50
R=20
88.0
9
192.
73
394.43
77.42
9.22
30.00
48.9
0
175.73
72.86
100.75
87.4
5
R=30
115.33
62.68
162.
37
102.74
110.70
39.31
160.52
70.1
0
81.1
0
72.02
100.
50
21.6
7
201.
28
53.7
0
10.5
7
104.68
118.
15
132.
36
R=20
100.00
7.42
160.
38
10.7
3
85.59 28.0
1
143.
90
87.73
70.83
187.00
71.3
9
180.00
171.
2296
.55
23.85
160.
10
45.68
230.89
181.
29
6.10
149.74
20.00
25.2
0 R=1015.62
115.
00
73.3
8
67.2
0
46.86
50.07
90.0
3
115.37
53.0
1
78.53
63.00
22.95
50.60
20.13
R=1
347
98.2
0
110.
77
159.75
5.17
64.63
60.0
0
R=20 91.46
14.95
8.00
50.6
4
48.90
29.7
9
52.3
6
69.14
21.88
10.05
162.
37
49.4
9
87.78
22.0
1
62.7
6
362.73
67.3
8
20.00
R=30
64.00
104.
70
209.
00
100.38
10.00
46.84
47.1
9
10.0
0
212.89
138.93
175.
00
243.50
37.50
77.8
0
17.81
20.58 87.50
106.
14
2581 sf
16,020 sf
14,877 sf
49,384 sf
96,799 sf
11,705 sf
25,870 sf
3606 sf23 sf
64,705 sf
18,392 sf
17,885 sf5095
sf
14,952 sf
20,039 sf
5042 sf
11,207 sf
17,555 sf
75,714 sf
20,449 sf
(1587 sf)
(7524 sf)
(151
4 sf
)
(9040 sf)
(5628 sf)
(7639 sf)
(107
4 sf
)
(6765 sf)
(920 sf)
(34,078 sf)
(2665 sf)
(12,810 sf)
(215
4 sf
)
(8187 sf)
WAT
ER
PIPE
LIN
E E
SMT
"A
" [2
36 sf
]
RD. P
AR.
"21"
RD.
PAR
. "18
"
RD.
PAR.
"19
"
RD. PAR. "14"
RD. P
AR.
"20"
ING
RES
S
&
EG
RES
S
ESM
T
[145
2 sf
]
ING
RES
S
&
EG
RES
S
E
SMT
[178
5 sf
]
A
4-B
A
B
1-B-2
B
6-B
3
6-A
4-A
1-B-1
5
1-A-1
8
1-A-2
C
11
A
1
2
P
L
A
T
2
6
P L
A T
5 1
P L A T 3 2
P L A T 3 0
P L A T 4 8
P U N C H B O W L S T R E E T
Q U I N N L A N E
KE
AW
E
ST
RE
ET
S O U T H S T R E E T
Q U E E N S T R E E T
H A L E K A U W I L A S T R E E T
EXEC. ORDER NO. 2343
K A K A ' A K O F I R E S T A T I O N
STATE OFFICEBUILDING COMPLEX SITE
EXEC. ORDER NO. 335
EXEC. ORDERNO. 2161
LD. CT. APP. 1495
R. P. 7429, Mahele Aw. 61
R. P. 1
245,
L. C
.
Aw.
677
LD. CT. A
PP. 414
L. C
.
Aw.
729
Por.
R.
P.
5722
, L
. C.
Aw.
7
35
Por. L. C. Aw. 805
LD. CT. APP. 76
Grant
3550
LD. C
T. A
PP. 1488
L. C. Aw. 6489:1
L. C. Aw. 1082
LD.
CT.
APP.
1
264Grant 3495
LD.
C
T.
APP
.
1506
Grant 3568Grant 3634
LD. CT. A
PP. 560
LD.
CT.
APP.
345
SCALE: 1 INCH = 40 FEETFOR PROPERTY ASSESSMENT PURPOSES, PARCELS MAY NOT BE LEGALLY SUBDIVIDED LOTS - SUBJECT TO CHANGECOPYRIGHT CITY & COUNTY OF HONOLULU - ALL RIGHTS RESERVED 2016
Date:
11/01
/2016
lgs
POR. HONOLULU, OAHU, HAWAII.
FIRST TAXATION DIVISIONZONE SECTION PLAT
REAL PROPERTY ASSESSMENT DIVISIONTAX MAPS BRANCH
CITY & COUNTY OF HONOLULU
DEPARTMENT OF BUDGET & FISCAL SERVICES
TAX MAP
2 1 031
DROPPED PARCELS: 3, 4, 6, 7, 9, 11, 13,14, 16, 17, 22, 23, 25-28, 34-36
TRUE NORTH
Scale: 1 in. = 40 ft.
Investment Highlights• Multiple opportunities for owner users.
• Conveniently located on the cusp of downtown in the heart of the growing neighborhood of Kaka'ako.
• Favorable zoning makes the properties highly desirable due to the wide range of users that can operate out of the properties.
• Great location for a Hawaii business owner looking to take advantage of a rare offering that provides the potential to customize a building specifically to their needs.
• A great opportunity for an investor to buy into a healthy submarket with strong demographics.
• Part of the Kaka'ako Community Development District (KCDD) near the Civic Center Station of the long-awaited Honolulu Rail Transit System. The site is subject to development under the KCDD TOD Overlay Plan (Draft) which outlines unique development opportunities.
• High demand residential market with limited inventory in the surrounding areas of Downtown Honolulu to serve business professionals not wanting to commute and for those seeking an urban lifestyle.
• High quality tenant improvements within the portfolio.
• Opportunity for healthy cash flow and potential for future redevelopment upon ground lease expiration of 598 Halekauwila.
The MarketsExecutive SummaryThis highly attractive portfolio of four (4) properties in the heart of Kaka‛ako is being offered in bulk or individually. The properties include two office buildings with Class A finishes, a leased fee with stable income, as well as an adjacent parcel primed to elevate the development potential or to be used for additional parking.
Investment MarketThe pandemic derailed investment activity not just in Hawaii, but throughout the country. Colliers International recently conducted its 2021 Global Investor Outlook Survey which indicated there is reason for optimism in the new year. Notwithstanding the widespread distribution of COVID-19 vaccinations, an overwhelming 98% of survey respondents indicated that they planned on expanding their real estate portfolios during the coming year. Initial projections estimated a 50% boost to investment activity in 2021.
Office MarketAt the end of 2019, the island’s vacancy rate fell below 10% for the first time in over a decade and landlords were beginning to enjoy the change in market dynamics. Seemingly overnight, the COVID-19 pandemic forced businesses throughout the State of Hawaii to adhere to government Shelter-In-Place directives and adopt stringent social distancing and sanitation requirements.
As a result of the pandemic, at the end of December 2020, Honolulu County's unemployment rate was 8%. The office market, which is directly correlated to changes in employment, posted a year-to-date loss of 132,380 square feet of occupancy, as vacancy rates rose from 9.93% at year-end 2019 to 11.58% at year-end of 2020. This rise in vacancy corresponded to the loss of 8,200 office sector positions since year-end 2019.
With this shift, the market has experienced increased activity for owner-users looking to acquire their own properties to avoid the masses in larger office buildings. The trends resulting from the pandemic along with low interest rates has created a prime opportunity for reasonable entry for buyers to own their own buildings.
Kaka‛ako Revitalization
2021Population
211,3972021 Average Household Income
Demographics
$90,117
Bike Score
69Walk Score
94
Transport Score
783-Mile
Kaka‛ako has evolved to become an exciting community due to developments by Kamehameha Schools and Howard Hughes, including new restaurants, mixed-use development condominiums, apartments, and retail. Kamehameha Schools’ master plan is to redevelop a total of 29 acres spread over nine blocks. Notable completed developments near the property include SALT at Our Kaka‛ako just three blocks away, which is comprised of 85,000 square feet of retail, restaurant and mixed-use space. SALT is designed for exploration and engagement with the community.
Kaka‛ako has also become a highly desirable neighborhood for businesses and foreign buyers seeking real estate opportunities. Kamehameha Schools and Howard Hughes have created their master plans with the HCDA to revive a community. The Howard Hughes project in Ward Village features ultra-luxury condominiums (Waiea, Anaha, Aeo, Victoria Place) and has a mixture of retail and residential on the east side of the Kaka‛ako district. The Ward Village plan includes 60 acres of land which is proposed to be a gathering place filled with restaurants and sidewalk cafes. The neighborhood will be walk and bike-friendly and eventually include the Honolulu rail, with stops along Halekauwila and end at Ala Moana Center.
This Master Plan includes most of Kamehameha Schools’ major properties in the Kaka‛ako Mauka Area. The subject of this KKMP application is the nine land blocks mauka of Ala Moana Boulevard, identified by Kamehameha Schools as totaling approximately 28.9 acres (shaded in purple). These nine land blocks have great potential to be transformed into a vibrant urban neighborhood that is attractive, healthy and sustainable. Kamehameha Schools’ other mauka lands (shaded in green) are not proposed for redevelopment under this Master Plan application. Kamehameha Schools’ Kaka‛ako makai properties (shaded orange) are currently being planned for an Innovation Center including high technology and life science uses (not a part of this application).
Kamehameha Schools envisions a mauka neighborhood that provides housing, retail, office, industrial, and associated spaces that
support these emerging makai developments. The proposed areas for redevelopment under this Master Plan application are labeled Blocks A through I. Currently, these blocks are characterized by low density retail and limited light industrial uses.
Through this plan, the redevelopment of Kaka‛ako into a vibrant, mixed-use urban neighborhood can be realized. Kamehameha Schools believes this plan provides a strong balancing of objectives that provides for a beautiful, healthy, sustainable neighborhood which contributes to the image of the city. Not only does this plan provide for a variety of new housing opportunities for area residents, by embracing smart growth principles, it discourages suburban sprawl. We believe this plan and this area are catalysts to help the City and State provide for thoughtful future growth in Hawaii.
Kamehameha Schools Kaka‛ako Master Plan (KKMP) – Mauka Area
Subject Properties
Residential Developments
Phase 1 of the Kamehameha Schools Master Plan for residential development involved Six Eighty Ala Moana, 54 workforce apartment rental units and 8,000 square feet of commercial retail space nearby the Collection, an A&B Properties condominium development.
In 2012, the first phase of the development plan was released for 54-unit rentals at Six Eighty Ala Moana. A former office building that had been converted into rentals and were restricted to families earning between 100% and 140% of Honolulu’s AMI.
Another project for reserved housing that was introduced was 400 Keawe, which features 88 units for rent. Keauhou Lane also features 388 units in a 400-foot tower and a mid-rise tower with 35 townhomes. Keauhou Place is the tower across the street from the subject property and the future Civic Center rail station will front the property along Halekauwila Street.
Rail
Honolulu Rail Transit – Civic Center StationThe property is located within a block of the proposed Civic Center Station and is part of a designated TOD zone. The Civic Center Station will serve as the primary station for the district’s many local, state, and federal employees and visitors. Important anchors for this district include Honolulu City & County buildings, State Capital District, Social Security Administration, and the U.S. Customs & Immigration. This will be the 19th station for the rail and only 4 minutes away from Ala Moana Mall and approximately 13 minutes from the Daniel K. Inouye Airport.
Owners and developers alike will be able to have one of the last remaining available properties in the vibrant and flourishing KCDD.
The Civic Center Station area has what some consider the greatest redevelopment potential of any station along the project alignment. Underutilized parcels here surround the station, existing uses include surface parking lots, low-rise warehouses and garages.
Civic Center Station
The State of Hawaii created the Hawaii Community Development Authority (HCDA) in an effort to guide the Kaka‛ako district through this redevelopment process. The regulating plan is divided into seven neighborhood zones in the mauka area plan of Kaka‛ako . The subject property is located in the
Civic Center Zone which allows for various uses including multifamily, retail, office, parking, and public uses and structures. The zoning requires reduced building heights to respect the scale of the existing historic buildings nearby.
ZoningSubject Properties
Property Gallery
576 Halekauwila
598 Halekauwila
560 Halekauwila
571 Quinn
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding theinformation including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally allinferred or implied terms, conditions and warranties arising out of this document and excludes all l iability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and /or itslicensor(s). © 2021. All rights reserved. Data source: ESRI, HERE, Garmin, FAO, NOAA, USGS, © OpenStreetMap. Map id: B_1614198463966 1 inch represents 926 feet
Nearby Amenities
Ala Moana Boulevard
1
5
4
1
2
3
5
2
3
4
3
4
5
1
2
Legend and Amenities
Down to Earth
H Mart
Salt at Our Kaka‛ako
Waterfront Plaza
Orange Theory
Aloha Tower Marketplace
Office Max
South Shore Market
Ala Moana Center
EARL Sandwich
Max & Lucy’s
Bevvy’s
Moku’s Kitchen
Highway Inn
Ruth Chris’s Steak House
Starbucks
Irifune Restaurant
Honolulu Fire Department
Hawaii Tax Department
Hawaii Transportation Department
USGIS Honolulu Field Office
Social Security Administration
Ka’ahumanu Hale Circuit Court
Hawaii Supreme Court
'Iolani Palace
Fedex Office Print & Ship
UFC Gym
Crossfit Oahu
Subject Properties
HART Line
Bike Path
Transit Stop
Retail Services Restaurants/Cafe
6
8
76
6
7
12
3
4
5
1
2
34
5
6
7
1
2
4
5
6
7
8
7
8
War
d Ave
nue
King Street
South Street
Kapiolani Boulevard
Queen Street
Punchbowl Stre
et
Civic Center Station
Kaka'ako Station
Ala Moana Station
Downtown Station
3
9
8
9
6
7
8
8
9
10
11
9
10
11
Central Business District
Asking Price: $9,900,000
Tenure: Fee Simple
Land Area: 16,020 sf
Building Area: 24,353 sf
Zoning: KAK
TMK: (1) 2-1-31:8
560 HalekauwilaProperty Overview• Well maintained four-story
building with ground floor parking
• Located within the Kaka‛ako Community District – Civic Center
• Ample parking (50 parking stalls)
• 1/2 block from the US District Court, State of Hawaii Courts, and from “Restaurant Row”
• Restrooms on each floor
• Floor plan layouts include private offices, conference rooms, and kitchens
Investment Highlights• Rare opportunity for a large
owner user to acquire a high quality asset
• Well maintained property with high quality finishes
• Lack of new office building development/competition
• Opportunity for temporary sale leaseback with credit tenant during design process
• Below replacement cost
• Excellent central location adjacent to Waikiki and the Central Business District
Asking Price: $6,250,000
Tenure: Fee Simple
Land Area: 14,877 sf
Building Area: 14,200 sf
Zoning: KAK
TMK: (1) 2-1-31:20
571 QuinnProperty Overview• Highly visible corner in
Kaka‛ako
• Ample parking
• Located within the Kaka‛ako Community District – Civic Center
• Men & Women locker rooms included within gym
• Floor layout includes conferences rooms, privates offices, and kitchen
Investment Highlights• Upgraded asset with Class A
finishes
• Lack of new office building development/competition
• Opportunity for short term sale leaseback with credit tenant
• Opportunity for owner-user or investor to create multi-tenant asset
• Below replacement cost
• Excellent central location adjacent to Waikiki and Central Business District
Property Overview• Leasehold interest owned
by B E & C Properties
• Highly visible corner in Kaka‛ako
• 1/2 block from the US District Court, State of Hawaii Courts, and from “Restaurant Row”
• Close proximity to numerous dining amenities
• Located within the Kaka‛ako Community District – Civic Center
Investment Highlights• Opportunity for healthy cash
flow and potential for future redevelopment upon ground lease expiration
• Ground lease income with reliable ground lessee in place through November 30, 2033
• Lack of new office building development/competition
• Excellent central location adjacent to Waikiki and Central Business District
Asking Price: $1,600,000
Tenure: Fee Simple
Land Area: 5,042 sf
Building Area: 2,500 sf
Zoning: KAK
TMK: (1) 2-1-31:2
598 Halekauwila
Property Overview• Vacant land currently used
for parking
• 1/2 block from the US District Court, State of Hawaii Courts, and from “Restaurant Row”
• Close proximity to numerous dining amenities
• Located within the Kaka‛ako Community District – Civic Center
Asking Price: $1,400,000
Tenure: Fee Simple
Land Area: 3,606 sf
Zoning: KAK
TMK: (1) 2-1-31:39
576 Halekauwila
Investment Highlights• Combine with adjacent lot(s) for
large redevelopment
• Ideal opportunity to create parking revenue for adjacent assets or expand redevelopment opportunities
• Excellent central location adjacent to Waikiki and Central Business District
• Could be potential site for HART staging during development process
This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). ©2021. All rights reserved.
Brandon Bera (S), CCIM, SIORLic# RS-72793Office Services Division808 523 [email protected]
Karen Birkett (S) SIORLic# RS-50512Office Services Division808 523 [email protected]
