A PREMIER FEE SIMPLE WAIKIKI HIGH STREET RETAIL OFFERING ... · 1 WAIKIKI BEACH, HAWAII A PREMIER FEE SIMPLE WAIKIKI HIGH STREET RETAIL OFFERING ON THE FAMED KALAKAUA AVENUE Holliday

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WAIKIKI BEACH, HAWAII

A PREMIER FEE SIMPLE WAIKIKI HIGH STREET RETAIL OFFERING ON THE

FAMED KALAKAUA AVENUE

Holliday Fenoglio Fowler, L.P. (“HFF”), acting by and through Holliday GP Corp, a California licensed real estate broker, California License Number 01385740 (“HFF”)Marketed in co-operation with Avalon Commercial, LLC Hawaii RB-18967, licensed Real Estate Broker, State of Hawaii

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KA

LAK

AU

A A

VEN

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KALAKAUA AVENUE

#1 MALL IN

AMERICA

WAIKIKI

WAIKIKI BEACH, HAWAII

5 .6 MILLION

VISITORS TO WAIKIKI PER YEAR

MOST VISITED

BEACH IN HAWAII

$7.6 BILLION($1,300 PER PERSON) ANNUAL TOURISTSPENDING ON OAHU

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THE OPPORTUNITYAs exclusive advisor, HFF is pleased to offer the unique

opportunity to acquire the fee simple interest in 2181 Kalakaua

(“the Property”), a trophy high street retail condo in the

heart of Waikiki Beach in Honolulu, Hawaii. The Property

is prominently located on Kalakaua Avenue, one of the

world’s most renowned high street retail destinations, and is

surrounded by top global brands, including Tiffany, Hermes,

Gucci, Louis Vuitton, and Moncler. Currently 100% occupied

by First Hawaiian Bank (over $819 million in deposits at this

location) and Quiksilver, 2181 Kalakaua presents the rare

opportunity to acquire a generational fee simple property

that anchors one of Waikiki’s most desirable corners.

PRICING: Best Offer

ADDRESS: 2181 Kalakaua Ave Honolulu, HI 86815

SQUARE FEET: 11,417 SF

OCCUPANCY: 100%

YEAR BUILT: 1967

SIZE: 0.511 Acres / 22,260 SF

INTEREST: Fee Simple Condominium

PARKING: 19 Spaces

YEAR ONE NOI: $2,031,814

PRO FORMA STABILIZED NOI: $3,647,534

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KALAKAUA AVENUE

PROPERTY SUMMARY

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IRREPLACEABLE LOCATION ON HAWAII’S HOTTEST RETAIL STREET

The Property is prominently located in the heart of Waikiki

Beach (5.6 million visitors per year) on Kalakaua Avenue, a

world famous high street retail destination that features co-

tenants such as Louis Vuitton, Hermes, Tiffany, Cartier, Fendi,

Ralph Lauren, Prada, Burberry, and Salvatore Ferragamo,

amongst others.

GENERATIONAL INVESTMENT OPPORTUNITY

Fee simple properties of this caliber in Waikiki rarely change

hands – this is a generational investment opportunity.

STRATEGICALLY POSITIONED IN NEW RETAIL EPICENTER OF WAIKIKI

Due to recent investment by JP Morgan in the adjacent

Royal Hawaiian Center, the focal point of Kalakaua Avenue

has shifted north to center directly around this Property,

dramatically increasing foot traffic and tenant demand.

INVESTMENT HIGHLIGHTS

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40,000+ DAILY FOOT TRAFFIC

VOLUME ON KALAKAUA AVENUE

7.60 % ANNUAL

NOI GROWTHOVER 10 YRS

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TENANT SUMMARY

FIRST HAWAIIAN BANKS&P CREDIT RATING: A- SF: 8,803 (77% OF GLA)EXPIRATION: DEC-21

QUIKSILVER

SF: 2,614 (23% OF GLA)EXPIRATION: DEC-21

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THETENANTS

$1.4 BILLION ANNUAL REVENUE IN 2015

10RETAIL LOCATIONSIN HAWAII

57BRANCH LOCATIONSIN HAWAII

HEADQUARTERED IN HONOLULU

SINCE 1858

$20 BILLION+ IN TOTAL ASSETS

A GLOBAL SURF-WEAR & BOARD-SPORT MANUFACTURER

+/-2,100 EMPLOYEESONE OF THE LARGEST EMPLOYERS IN HAWAII

TENANT SQ. FT. % OF GLA START EXP

First Hawaiian Bank 8,803 77.1% Aug-91 Dec-21

Quiksilver* 2,614 22.9% Aug-91 Dec-21

TOTAL 11,417 100.0%

*Quiksilver sub-leases its space directly from First Hawaiian Bank.

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NEAR-TERM TANGIBLE NOI GROWTH

Current rents at the Property are below market, providing

near-term value creation through mark-to-market rent

opportunities when the current lease term expires in

December 2021.

LONG TERM CAPITAL APPRECIATION

Due to the irreplaceable Waikiki location, 2181 Kalakaua

offers investors long term capital appreciation with minimal

downside risk.

EXCEPTIONAL TENANT PERFORMANCE

This First Hawaiian Bank branch location has over $819

million in deposits, demonstrating the strength of this retail

location and the affluence of the customer base.

$819 MILLIONIN BANK DEPOSITS

AT THIS BRANCH

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LUXURY ROW

INTERNATIONAL MARKETPLACE

T GALLERIA BY DFS, HAWAII

PRINCESS KAIULANI

KALAKAUA AVENUE

IS THE NATION’S 5TH MOST

PRODUCTIVE SHOPPING STREET

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ADJACENT TO THE ROYAL HAWAIIAN

CENTER WITH ANCHORS

THAT INCLUDE

WAIKIKI SHOPPING

PLAZA

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WAIKIKI

91 WALKSCORE

KALAKAUA AVENUE TRAFFIC

COUNTS EXCEED

55,000 VPD

This Offering Memorandum has been prepared by HFF for use by a limited number of recipients. All information contained herein has been obtained from sources other than HFF, and neither Owner nor HFF, nor their respective equity holders, officers, employees and agents makes any representations or warranties, expressed or implied, as to the accuracy or completeness of the information contained herein. Further, the Offering Memorandum does not constitute a representation that no change in the business or affairs of the property or the Owner has occurred since the date of the preparation of the Offering Memorandum. All analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the recipient. HFF and Owner and their respective officers, directors, employees, equity holders and agents expressly disclaim any and all liability that may be based upon or relate to the use of the information contained in this Offering Memorandum.

Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors.

Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to any recipient reviewing this Offering Memorandum or making an offer to purchase the property unless and until such offer is approved by Owner, a written agreement for the purchase of the property has been fully executed, delivered and approved by Owner and its legal counsel, and any obligations set by Owner thereunder have been satisfied or waived.

The recipient (“Recipient”) agrees that (a) the Offering Memorandum and its contents are confidential information, except for such information contained in the Offering Memorandum, which is a matter of public record, or is provided from sources available to the public (b) the Recipient, the Recipient’s employees, agents and consultants (collectively, the “need to know parties”) will hold and treat it in the strictest of confidence, and the Recipient and the need to know parties will not, directly or indirectly, disclose or permit anyone else to disclose its contents to any other person, firm, or entity without the prior written authorization of HFF and the Owner, and (c) the Recipient and the need to know parties will not use or permit to be used this Offering Memorandum or its contents in any fashion or manner detrimental to the interest of the Owner or HFF or for any purpose other than use in considering whether to purchase the property. The Recipient and the need to know parties agree to keep this Offering Memorandum and all confidential information contained herein permanently confidential and further agree to use this Offering Memorandum for the purpose set forth above. If the Recipient has no interest in the property, or if in the future the Recipient or owner discontinue such negotiations, the Recipient will return this Offering Memorandum to HFF.

10250 CONSTELLATION BLVD

SUITE 1000

LOS ANGELES, CA 90067

310.407.2100

BRYAN LEYManaging DirectorCA License #[email protected]

STEVEN PASKOVERDirectorCA RE Lic. #[email protected]

AVALON COMMERCIALHI RE Lic. #[email protected]

TONY ENSBURYAnalystCA License #[email protected]

JUSTIN KUNDRAKDirectorCA License #[email protected]

INVESTMENT ADVISORS

DEBT ADVISORMARKETED IN COOPERATION WITH