Download 3049 Ualena Street

FOR SALE > 14-STORY MULTI-TENANT OFFICE BUILDING
3049 Ualena Street
HONOLULU, HAWAII 96819 (Adjacent to Honolulu International Airport)
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www.auction.com | Item Number: B150-114
Investment Summary
Property Highlights
Auction Date:
February 23-25, 2015
via Auction.com,
Item Number B150-114
Starting Bid:
$4,500,000
2014 Actual NOI:
$1,130,000
Tenure:
Fee Simple
Gross Leaseable Area: ±111,109 square feet
Land Area:
±26,102 square feet
Parking:
281 stalls
TMK No.:
(1) 1-1-14:6
Zoning:
Industrial (I-2)
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14 Story Multi-Tenant Office Building
281 Secured Parking Spaces
Conveniently located adjacent to the Honolulu International Airport
Easy Access to the H-1 and H-3 Freeway
24 Hours Security
Conveniently located within walking distance of two planned rail
stations, making the Property more easily accessible to large
nearby populations
• Demand for parking stalls for tenants should be reduced due to
the close proximity to planned rail stations
• The Property’s largest tenant, Na Hoku, operating over 60 fine
jewelry stores in Hawaii and the U.S., has been at the Property
since 1997
Property tours will be held on February 9, 2015 from 10am - 2pm. Please contact Mark Bratton at 808.523.9708 to arrange a tour.
*Bratton Realty Advisers, Ltd. Exclusively contracted to Colliers International HI, LLC
Copyright © 2015 Colliers International. 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). All rights reserved.
FOR SALE > 14-STORY MULTI-TENANT OFFICE BUILDING
3049 Ualena Street
HONOLULU, HAWAII 96819 (Adjacent to Honolulu International Airport)
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ND E S
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www.auction.com | Item Number: B150-114
Property Description
Airport Center is a 14-story multi-tenant office
building located adjacent to the Honolulu
International Airport. The Airport submarket
consists primarily of industrial and service retail
users and a limited amount of office inventory.
Airport Center is the only high-rise office building
in this submarket and is easily identified by the
building size murals on the east and west facades.
This full service office building offers 24 hours
security, secured parking on 7 floors, and a
complete office operating system for its tenants.
The Property is offered on a no representation or
warranty, “As-Is” basis.
Property Location
Airport Center is considered a centrally located
building, which proves valuable to those tenants who
have both clientele and staff members across all
parts of the islands. Located adjacent to the Honolulu
International Airport, it is also next to Pearl Harbor,
Fort Shafter, and 5 miles from Downtown Honolulu.
As one of the few office buildings and the only office
high-rise in the Airport submarket, Airport Center
is arguably the most sought-after building for office
tenants looking in the Airport submarket.
Demographics
POPULATION
AVG HH INCOME
MEDIAN AGE
BA DEGREE OR HIGHER
3 Mile
106,394
$77,624
35.6 yrs
15,054
5 Mile
237,946
$79,522
38.8 yrs
46,014
10 Mile
660,724
$87,547
39.3 yrs
139,988
*Bratton Realty Advisers, Ltd. Exclusively contracted to Colliers International HI, LLC
Copyright © 2015 Colliers International. 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). All rights reserved.
FOR SALE > 14-STORY MULTI-TENANT OFFICE BUILDING
3049 Ualena Street
HONOLULU, HAWAII 96819 (Adjacent to Honolulu International Airport)
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Koapaka Street
Ualena Street
PROPOSED
AIRPORT
RAIL STATION
Lagoon Drive
N. Nimitz HIghway
Ohohia Street
www.auction.com | Item Number: B150-114
PROPOSED
LAGOON DRIVE
RAIL STATION
Aolele Street
RAIL STATION
Value Enhancement Opportunities
Discount To Replacement Costs
• Convert property to “for-sale” condos
• Owner-user can grow into full occupancy by 2021
• Opportunity to expand potential tenant pool as
close proximity to planned rail station(s) will likely
alleviate demand by tenants for the already limited
amount of existing parking in the building
• Limited alternatives for displaced tenants from rail
in nearby areas
• Evaluate window installation feasibility on Ewa (west)
side of Property which will demand higher rents
• Create spec suite for windowless space with new
age lighting concepts meant to mimic natural light
• Upgrade ground floor tenant mix
• Secure parking nearby and/or provide shuttle service
• Public transit incentive programs for tenants who
require larger parking allotments
• New office building construction in Hawaii has been limited
due to high construction costs and the lack of rents high
enough to support a financially feasible development.
• Replacement costs for Airport Center are estimated at $49.2
million with an additional $2.35 million to purchase the land,
for a total of $52.55 million.
Honolulu Rail Transit System
Construction has begun on the long-awaited Honolulu Rail
Transit System which will service 21 rail stations between
Kapolei and Ala Moana. Rail service is anticipated to
commence in 2019. Airport Center is conveniently located
within walking distance of two newly planned rail stations the Airport and Lagoon Drive. Implementation of the rail will
make the Property more easily accessible to large populations
in the surrounding areas.
*Bratton Realty Advisers, Ltd. Exclusively contracted to Colliers International HI, LLC
Copyright © 2015 Colliers International. 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). All rights reserved.
FOR SALE > 14-STORY MULTI-TENANT OFFICE BUILDING
3049 Ualena Street
HONOLULU, HAWAII 96819 (Adjacent to Honolulu International Airport)
LE FE
ND E S
ER IM
OW PLE
NE
D
www.auction.com | Item Number: B150-114
Market Overview
Airport Center is part of the Airport/Mapunapuna office submarket which consists of approximately 815,000 square
feet of office space centered around the Airport area south of Nimitz Highway to the Moanalua Freeway to the
north. The small size of the submarket and significant barriers to entry such as high construction costs and the
lack of available fee simple land for development, should indicate strong performance. However, current demand
constraints from slow market conditions, as well as more competitive rents in nearby submarkets, have hampered
occupancy for this market. As economic conditions improve and rents increase in the central business district and
other urban markets, occupancy levels should increase.
Since a record high vacancy rate for this submarket of over 17.0% in 2008, the market has seen improvement
over the past few years ending with a year-end 2011 vacancy rate of 8.3%. Third quarter 2014 vacancy rate of
10.75%. Rental rates for the third quarter of 2014 averaged a low of $1.61 psf/mo and a high of $1.69 psf/mo,
while the overall island-wide average ranged between $1.54 and $1.69 psf/mo and CBD rents were between
$1.26 and $1.46 psf/mo. Current asking rates at Airport Center range from $1.25 to $1.30 psf/mo.
Contact Us
Mark D. Bratton* (R), CCIM
Investment Services`
Tel: 808 523 9708
E-Mail: [email protected]
Brandon Bera (S)
Office Services & Investments
Tel: 808 523 8309
E-Mail: [email protected]
Karen M. Birkett (S)
Office Services & Investments
Tel: 808 523 9729
E-Mail: [email protected]
COLLIERS INTERNATIONAL
220 South King Street, Suite 1800 | Honolulu, HI 96813
www.colliers.com
*Bratton Realty Advisers, Ltd. Exclusively contracted to Colliers International HI, LLC
Copyright © 2015 Colliers International. 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). All rights reserved.