August 2024 Market Data
In August 2024, there were just 2 properties that sold for a total volume of $5.99M a sluggish month. 2810 Varsity Circle, a 6-unit building, went into escrow after being on the market for only 8 days. Originally listed at $1.8M but sold for $1.7M or $283K/unit and a 4.68% cap rate. The second property that traded was 2408 Prince Edwards St., also known as the Stay Condominium, an 11-unit (1bd/1ba) resort zoned property. The transaction was off-market and sold for $4.29M or $390K a unit and a 6.23% cap rate.
Download Sales Comps Below
Inventory Snapshot
While demand was stagnant through the summer, there are 43 properties listed on the market for a total consideration of $159M. The median days on market (DOM) is down to 101 days as there are 12 new listings since the beginning of August. The median Cap rate of deals listed is 3.94%.
To receive our Hawaii Multifamily Inventory Sheet, which compiles all active listings as well as off-market opportunities into one convenient document, simply reply to this email requesting to be added to the distribution list.
September 2024 FED Decision
During the FED’s September meetings, they elected to slash the short-term FED Funds rate by 0.50%, easing monetary policy for the first time in four years as the committee has gained greater confidence that inflation is trending towards their 2 percent target. The results of the poll for “How much will the FED slash rates by?” that we ran last month were - 76% of the vote went to a 0.25% cut and 20% of you thought that there would be a 0.50% cut, and 4% voted for no change. Thank you for participating in the poll. It is widely anticipated that the FED will move to cut rates another 0.50% by the end of the year and will continue its easing into 2025. Investors that were waiting for the improvement in their cost of capital, it’s a great time to get off the sidelines and start underwriting deals again.
Done Deal!
Excited to announce the successful closing of a 3-unit multifamily property at 366 Lehua St., Hilo, HI 96720!
Challenge:
The buyer's goal was to invest in a multifamily property but didn't know where to start. Facing limited inventory and frustrated by the lack of options, she was ready to give up her search.
Action
We stepped in to develop a strategic plan, starting by helping her get pre-qualified, determining her budget, and carefully evaluating investment opportunities that aligned with her goals.
Result
We found a 3-unit property in Hilo that was a perfect fit. The buyer was able to live in one unit while renting the other two (a house hacking strategy), reducing her housing expenses and generating passive income. This property not only provided immediate financial relief but set the stage for her to continue building a real estate portfolio and create generational wealth.
Testimonial
"Through my past experiences in real estate, I can confidently say that Kynan was the best agent I’ve ever worked with. He was the right person for a purchase of this caliber—knowledgeable, experienced, and highly responsive. He kept me updated throughout the entire transaction and maintained a positive attitude. I’ll definitely be working with him again."
Multifamily in the News
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Networking Events
CCIM General Membership Meeting – Hawaii Pacific Health Project Update
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