Q1 - 2025 Market Data
Our forecast headed into 2025 was very optimistic, however, the data following the first quarter of the year suggests that there is still a lot of uncertainty in the market as we saw volume decline sharply following a strong finish to 2024. In Q1-2025 there were a total of 7 properties (5+ units) that traded for a total sales volume of $20.84M a 53.49% decrease in volume from Q4-2024.The median price per unit was down 2.63% to $300,000 / Unit and the median CAP rate of these transactions was up 23 basis points to 4.17% expressing a softening in property valuations.
Download Sales Comps Below
Inventory Snapshot
The inventory across the market has been robust, there are a total of 57 properties on the market for a total consideration of $219.1M up from 48 properties and $175M at the end of Q4. The challenge in the market today is that Seller’s expectations are lofty relative to the hurdles that Buyers are faced with such as, higher interest rates, increased insurance premiums, and large renovation budgets to name a few. This is evident in the median CAP rate of the deals on the market which is 3.89% suggesting majority of the deals are “over-priced.” The properties that are priced in line with Buyers expectations are the properties that are trading.
To receive our Hawaii Multifamily Inventory Sheet, which compiles all active listings as well as off-market opportunities into one convenient document, reach out to us directly to be added to the distribution list.
Owner's Corner
Unlocking Wealth: The Benefits of a 1031 Exchange When Selling an Apartment Building
Selling an apartment building often triggers a large capital gains tax bill—but a 1031 exchange can help you defer those taxes and reinvest your full proceeds into another property. Here’s how that benefits you:
1. Defer Capital Gains Taxes
A 1031 exchange lets you reinvest in a “like-kind” property without paying capital gains taxes immediately—freeing up more capital to grow your wealth.
2. Expand and Diversify Your Portfolio
Use the deferred taxes to buy larger or multiple properties, or diversify across different asset types to reduce risk.
3. Upgrade or Consolidate
Trade up to a better-performing property or simplify your portfolio by consolidating several assets into one.
4. Improve Estate Planning
Your heirs can receive the property at a stepped-up basis, potentially erasing the deferred tax liability. A powerful for transferring wealth to the next generation without the tax burden.
5. Transition Into Retirement
Use a 1031 to move into passive investments like Delaware Statutory Trusts (DSTs), which generate income with minimal management.
At Excel Commercial Realty, we specialize in helping owners navigate 1031 exchanges and identify the right properties to meet their investment goals.
Contact us today to learn how a 1031 exchange can benefit your strategy.
Visit our Blog for More Tips & Best Practices
Multifamily in the News
City Announces New Department Dedicated to Affordable Housing
Uahi Ridge Breaks Ground in Lihue
New Bill-7 Affordable Housing Rental Complex Opens in Makiki
EAH on the Challenge of Building Affordable Housing in Hawaii
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708F Olokele Ave.
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