Q3 2023 Market Data
During the 3rd quarter of 2023, twelve (12) properties traded for a total volume of $32.78M up 5.80% year over year. The median price per unit was $302k / unit up 40.76% year over year. The average cap rate of these deals was 4.12%. Activity has picked up from the beginning of the year as investors are looking to place capital amidst the current economic environment, bringing the total sales volume through the 3rd quarter of 2023 to $121.11M.
The notable sale of the quarter was the sale of 44-707 Puamohala Street located in Kaneohe. The 18-unit building sold for $7.12M, purchased by the Council for Native Hawaiian Advancement to support their programs. Download the market comps below!
Current Inventory Snapshot
There are 35 properties currently on the market for a total consideration of $135M. The average days on market is 145 days. The average cap rate of deals listed is 3.86% compared to the 4.12% of where deals are trading.
If you’re interested in receiving my Hawaii Multifamily Inventory Sheet which tracks all the active listings, consolidated into one sheet, reply to this email to be added to the distribution.
November FED Meeting Recap
The Federal Reserve has raised interest rates 11 times since it began tightening back in March 2022, but has elected to hold steady on rates for the second straight time at the conclusion of its November meeting and kept the Fed Funds target rate at 5.25% to 5.5%.
Inflation has been tough to tackle as it still sits at 4.1% and Fed Chair Jerome Powell added “The process of getting inflation sustainably down to 2% has a long way to go.”
Asset Management Tip – Fireproof Your Building
Considering the recent fire events across the state, here are a handful of tips to properly protect your most valuable asset, your apartment building:
Fire Detection & Alarm Systems
- Install smoke detectors and fire alarms throughout the building. Regularly test and maintain them to ensure they are in proper condition.
Fire Sprinklers or Extinguishers
- If your building has sprinklers, great, test them routinely. If not, providing units and common areas with extinguishers is highly recommended.
Electrical Safety
- Is the building’s electrical wiring up to code, if not, it’s best to add it to your capital expense budget and upgrade it as soon as possible.
Install Fire Rated Materials
- Install fire-rated doors and windows to prevent the spread of flames, smoke, and heat. These should be kept closed and in good working condition.
Utilize Emergency Lighting & Exit Signs
- Install emergency lighting and properly placed exit signs to ensure tenant safety during a fire or power outage.
Reply to this email if you would like to discuss strategies to protect your building from fire and other hazards!
Multifamily In the News
Makiki Affordable Rental Project to Break Ground
Makiki Affordable Project Completed
Construction Underway for Chinatown Project
Senior Housing Construction Begins on old Aiea Sugar Mill Site
Governor Green's Second Proclamation Relating to Affordable Housing
Networking Events
CCIM Hawaii's Annual Cocktail Party
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We have so much to be grateful for, be sure to enjoy your Thanksgiving with family and friends! | 
