Details:Price: $ 5,395,000 Sold Address: 1841 A Palolo Avenue Honolulu HI 96816
• 18 units
• 18 parking spaces
• 12,480 SF lot
• Avg SF per unit is 528+
• Built in 1969, Renovated in 2015.
• Turn Key Building with BRAND NEW: Spalling Repair Paint Asphalt Parking Lot Roof Many Renovated Units
• Individually metered Gas and Electric, paid by tenants
TURN KEY BUILDING: So many improvements (exteriors: new spalling, paint, asphalt, roof, railings, gutters, many interiors, and more!)
DESIRABLE PRODUCT: Unobstructed view of Diamond Head. Hollow tile apartment opportunity in desirable area with few comparable buildings and an established, stable rental pool. Home prices in Palolo are reaching the million dollar mark & $/psf residential sales are higher than the Kahala. Very little competition in the area bc property is legal, non-conforming. And yet, all apartments of the same vintage, according to the DPP, are also legal, non-conforming. In other words, if they were to be built today, all apartment buildings would have higher parking requirements & set backs + green space.
LOW MONTHLY EXPENSES: Tenants pay H2O, gas & electric.
LOTS OF UPSIDE : Market rents are $1650 for ones, $1850 for twos, but not a lot of comps because the area is mostly single family houses ($2,000+). Pro forma analysis uses super conservative rents to produce $336,600/year. The property is rented below market with 7 section 8 tenants; these leases, a few of which have remaining on their terms, would be subject to the Landlord Tenant Code, just like any other tenant (ie, 45 days notice to vacate).
CLEAN INSPECTION REPORT & ENVIRONMENTAL
BONUS Pristine inspection report available from a previous buyer unable to sell property in his 1031 exchange.