The price of $5,350,000 includes a separate 15,000 SF paved vacant parking lot zoned M-1 directly across the street from the building just steps to the ocean. The gas station and minute stop (Suites 101 & 101A) are not included in this sale and the parking has been adjusted accordingly. This is an incredibly unique opportunity to take advantage of the B-2 zoning on the 2nd floor which allows up to 20 transient vacation rentals pursuant to Maui County Ordinance 19.18.020. I have prepared an extensive analysis of the property which is available on "Assoc Docs." There are 9 Docs. The property is zoned M-1 light industrial Maui County Ordinance 19.24.020 which allows any use permitted in a B-1,B-2, B-3 Business District. The building size is 34,255 SF on two floors. There are a total of 23 rent-able spaces in the building. There are 48 parking spaces not counting the parking lot across the street. The total gross operating income is $413,589.00. The projected 2019 NOI is $292,830.48 or 5.47% Cap Rate. There were over $100,000 in capital improvements in 2018 yielding a much lower cap rate. See associated docs. To put this superb property to its highest and best use the plan is to relocate the 2nd floor suites to the 1st floor and convert the 2nd floor to the 20 TVR's. The current rate of capitalization (Cap rate) is 3.68% without the 2nd floor conversion. At $125 per room per night @20 rooms the gross income is $900,000 separate from the commercial income. The projected NOI from the TVR's is $675,552.00. If you combine the $675,552.00 with the $299,119 projected NOI for the now higher occupancy based on 2nd floor moving to the first floor the NOI is now $974,671. The cap rate based on the conversion and moving the 2nd floor to the 1st floor is 18.21%. Another value added possibility is converting the 1st floor to commercial condominiums yielding 21,772 sf. Of the 23 rentable spaces 14 are occupied and 9 are vacant. Assuming the upstairs tenants agree to move downstairs (with incentives) only 7,772 sf of vacant space remains. The upside potential is enormous. CB Richard Ellis are the new leasing agents.
|Price Reduced (from $535,000,000)||$5,350,000||$529,650,000 (99.00%)|
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