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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 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) • • • • • • 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) LE FE ND E S ER IM OW PLE NE D 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) LE FE ND E S ER IM OW PLE NE D 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.