Q4 2023 Market Data
There were 14 properties that traded in the fourth quarter of ’23 for a total volume of $32.17M. The median price per unit was $251k and the average cap rate of the deals that closed was 3.92%. In 2023 we saw 52 transactions throughout the year for a total deal volume of $154.34M.
The notable sale of the quarter was 2398 Kuhio Avenue in Waikiki, a mixed-use property that was sold by 218 Kaiulani LLC an entity related to Food Pantry Ltd., in an off-market deal to Queen Emma Land Company for $4.363M. The property consisting of 24 units and situated on 15,766 square feet of land is likely slated for future redevelopment. Download Market Comps Below!
Current Inventory Snapshot
There are 42 properties currently on the market for a total consideration of $184M. The average days on the market has decreased from 194 to 148 days with 17 new properties listed in '24 leading to a healthy supply. The average cap rate of deals listed on the market is 3.86% compared to the 3.92% cap rate, where deals are trading, a 6 basis point spread, indicative of buyers and sellers expectations being much closer in alignment.
If you’re interested in receiving our Hawaii Multifamily Inventory Sheet which tracks all the active listings, consolidated into one sheet, reply to this email to be added to the distribution.
The market is in constant flux and thus your criteria for acquiring property may have changed as a result.
Please complete our 2024 Buyer Criteria Survey so we can be sure to provide you access to the deals that match your preferences.
Asset Management Tip – Prepare Your Property for Sale
Multifamily owners must consider making these upgrades to ensure their property is sustainable.
Multifamily owners must consider the following items to sell for big profits!
Maximize Curb Appeal:
- Refresh the landscaping.
- Trim overgrown hedges and trees.
- Pick up trash and dead leaves.
Obtain Quotes to Repair Parking Lot:
- Patch potholes.
- Reseal and restripe parking lot.
Replace Lighting:
- Replace common area lighting to LED fixtures.
- Ensure all lighting works and matches.
Unit Doors:
- Touch up paint or stain doors to match
- Match door hardware and unit numbers.
Deep Clean:
- Pressure wash walkways and siding.
- Clean dumpster / trash areas.
- Tidy entryways and mail or laundry areas.
- Clean exterior fence line if needed.
By addressing these items, your property will show in its best light in photos and on tours and ultimately attract higher offers, resulting in greater returns in your pocket when it’s time to sell.
Multifamily In the News
Condemned Waikiki Walk-Up is Eyed for Affordable Housing
Bill Would Let Only Current, Former Residents Buy Hawaii Homes
How Much Housing Should be Allowed in Oahu’s Business Districts?
Bill Would Activate $10M in Affordable Housing Development Incentive
“Real Estate Speculation” Surcharge Proposed to Benefit Public Education
Should Foreigners Be Banned from Purchasing Land in Hawaii
“Monster Homes” Measure Nears Final Vote
Fed Hits Snooze On Rates, Signals Change This Year
Cautious Optimism at NMHC Apartment Strategies
Networking Events
2024 CCIM – General Membership Meeting: What’s New in Downtown Honolulu – Feat. Christine Camp, Avalon
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