1192 alakea street - loopnet
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1192 ALAKEA STREETHonolulu CBD Development Opportunity OFFERING MEMORANDUM
www.1192Alakea.com
2 | 1192 Alakea Street
Executive SummaryExecutive Summary
The site at 1192 Alakea Street offers a rare opportunity to construct a dense high-rise infill development in Honolulu’s land-constrained Central Business District. In a marketplace with high barriers to entry and limited parking, this property offers significant optionality – from a 327 stall parking garage to residential, hotel, office, or retail uses.
PROPERTY DETAILS
ADDRESS: 1192 Alakea Street, Honolulu, HI 92813
TMK: 21010050:000
SIZE: 0.30 Acres / 12,842
CONFIGURATION: Level, corner site
ACCESS: One point of ingress/egress on Alakea Street
UTILITIES: All utilities are believed to be available at the site
CURRENT USE: 38 space parking lot leased to operator
ENTITLEMENTS: No entitlements are in place; however, plans were completed for a 12 story, 327 stall parking garage
SURROUNDING DEVELOPMENTS:
• Pinnacle Honolulu: Adjacent to Northwest. 36 floors, high-end residential condo units built in 2008.
• Capital Place: Across street to Northeast. 39 floors, 394 units, 396 feet tall, built in 2008.
• Hawaiian Telecom (HTI): Adjacent to West. Office building, approximately 250 feet tall.
• District Court of the State of Hawaii: Across street to South.• State of Hawaii Capital: One block to South.
OFFERING HIGHLIGHTS
• 0.30 acres / 12,842 Square Feet
• 7.5 maximum FAR with Open Space Bonus
• Currently 38 space parking lot leased at $19,000/month
• Plans for 327 stall parking garage
• BMX-4 Zoning allows residential, hotel, office, and retail uses
• Honolulu CBD location 1 block from State Capitol
Development Potential
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Parking Lease Terms
PARKING LEASE TERMS
OVERVIEW: The subject parking lot benefits from a favorable lease arrangement that can provide a developer with in-place income during the entitlement process
TENANT: United Parking Services, LLC
ORIGINAL EFFECTIVE DATE: December 15, 2007
EXTENSION DATE: February 1, 2017
EXPIRATION: January 31, 2019
BASE RENT: Annual rent is $228,000 + Hawaii General Excise Tax (GET), paid monthly
PERCENTAGE RENT: 50% of Gross Parking Revenue above $300,000 per lease year
EXTENSION OPTION: One 24 month extension is available with a rental rate of $252,000 per year, paid monthly
PREMISES: Excludes 12 striped spaces used by Hawaii Telecom as part of the agreement described later in this Offering Memorandum
LANDLORD RESPONSIBILITIES: Capital improvements and property taxes (reported at $47,772 in 2016)
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Locator Map
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Development Potential
DEVELOPMENT CRITERIA
ZONING: BMX-4 Central Business Mixed Use. The property is within the Transit Oriented Development (TOD) Plan.
ALLOWED USES: Multi-family residential (for sale or rent), hotel, office, various retail, parking, and other uses
HEIGHT: 400 feet
SETBACKS: Front: 5 feet / Side & Rear: 0 feet
PARKING: Dwellings (600 SF or less) 1 per unit + 1 guest per 10 units + 1 loading stall for 20 to 150 units / Boarding Facilities 2 + 0.75 per unit
FAR: 4.0 base FAR; 7.5 maximum with Open Space Bonus
TOTAL BUILDABLE AREA: 51,368 SF (96,315 SF with Open Space Bonus)
OPEN SPACE REQUIRED TO ACHIEVE BONUS: 4,495 SF
TOD PLAN: Allows for a reduction in required parking, provides for flexibility in type of Open Space provided, and requires building façade and fenestration designs that enhance the pedestrian experience.
LOCAL ARCHITECT & PLANNING CONTACT:
William A. Brizee733 Bishop Street, Suite 3100Honolulu, HI [email protected]
1192 ALAKEA STREET
CONCEPTUAL PLANNING JULY 31, 2015
AERIAL VIEWS
POTENTIAL BUILDING MASSING
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DEVELOPMENT OPTIONS
RESIDENTIAL CONDOMINIUMS:
2016 saw a record high Oahu condominium market. The median sale price was $390,000, a 20% increase from the previous high of $325,000 in 2007 & 2008. Additionally, the supply of available new and resale homes in Oahu continues to shrink, putting continued upward pressure on values. Additionally, many West Coast major metropolitan markets have seen median values grow at a faster rate, suggesting Oahu will remain an attractive market and may perhaps even be undervalued.
FOR-RENT MULTI-FAMILY: Rental rates for A and B product in the Honolulu market are
currently averaging above $2.25/SF, up almost 20% from 5 years
ago. With declining construction starts, decreasing inventory and
vacancy rates around 3.7% for the submarket, rents are likely to
continue trending upward.
HOTEL: The only hotel option in Downtown Honolulu is Aston at the
Executive Centre Hotel, a mixed-use condominium hotel developed
in 1984. With approximately 90 rooms starting at $209 per night,
the market appears to be under-served.
STUDENT HOUSING: Hawaii Pacific University has a current enrollment of over 6,700 students spread across 3 campuses, including the nearby Downtown campus, with less than 300 rooms. The University of Hawaii at Manoa, has approximately 20,000 students currently enrolled. With limited on- and off-campus housing offering modern amenities, developers have a substantial opportunity to capture the growing demand.
400’ Max Height
Building Envelope
Property Line
ALAKEA ST. BERETANIA ST.
400’ Max Height
Building Envelope
Property Line
ALAKEA ST. BERETANIA ST.
Potential Building Design Per Zoning
Development Potential
Development Potential
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HAWAII TELECOM AGREEMENTThe property is subject to an agreement with Hawaii Telecom (HTI) for the purpose of protecting
telecom infrastructure on their adjacent building. This agreement has the following key criteria:
• The foundation or structure of any building construction on the subject site cannot touch
the foundation or building of the adjacent HTI building. Additionally the wall facing the HTI
building must be solid.
• HTI has the right to buy 30 parking spaces in any proposed development on the subject site
for $1,000,000.
• The height of a development on the subject site is limited to 240 feet to prevent interference
with HTI’s rooftop transmission equipment.
The agreement with HTI substantially limits the potential FAR of the property; however, based
on preliminary conversations with HTI, Seller believes that the agreement could be amended to
remove the 240 foot height limit if the developer agrees to relocate the telecom equipment onto
the roof of the new structure. Additionally, the City’s TOD director has expressed a willingness to
assist with this effort as they would like to see a 400 foot tower developed at the site.
Potential Building Design with HTI Agreement In Place
1192 Alakea Street
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Hawaii State Capital
Ward Village Development
Kaka ‘ Ako Development
Waikiki Beach
Aerial Map
Hawaii Pacific University
1192 Alakea Street
University of Hawaii Manoa
Tax Map
www.1192Alakea.com
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Terms: Property is offered unpriced. Please submit propsals to listing agent.
Due Diligence: Please visit www.1192Alakea.com to download additional information about this opportunity.
BROKER CONTACT INFORMATION:S. STEVEN SOFOS, (B) CPM600 Kapiolani Boulevard, Suite 200Honolulu, HI [email protected]
Debt & Equity: Available via Ben Schwartz of Cushman & Wakefield at [email protected]
ADVISORY SERVICES PROVIDED BY:THE LAND GROUP
Cushman & Wakefield of San Diego, Inc.CA License #01329963
858.452.6500www.TheLandGroupCW.com
www.1192Alakea.com