FOR SALE | FIVE (5) COMMERCIAL CONDO UNITS

WITH RIGHTS TO 110 PARKING STALLS

CANTERBURY PLACE1910 ALA MOANA BOULEVARD WAIKIKI, HONOLULU, HAWAII

www.WaikikiRetailForSale.com

2 | Cushman & Wakefield |

THE

OFFERING

Five 110*

18,117 SF

COMMERCIAL CONDOS

PARKING STALLS

RENTABLE AREA

Cushman & Wakefield ChaneyBrooks is pleased to offer a rare opportunity to acquire the leasehold interest in five (5) commercial condominium units in Canterbury Place together with 110 parking stalls, located at 1910 Ala Moana Boulevard, Waikiki, Honolulu, Oahu, Hawaii (the “Property”). The Property benefits from excellent street visibility along Ala Moana Boulevard and high pedestrian traffic from both locals and visitors.

The original developer from 1978 has been the sole owner of the Property and has not been focused on maintaining and maximizing leasing efforts for the Property. This presents significant value add opportunities for a buyer. With proper repositioning, Canterbury Place can serve as a desirable destination for both locals and visitors, connecting Ala Moana and Waikiki.

The Canterbury Place condominium project is comprised of a 40-story concrete, steel, and glass high-rise tower containing 151 apartments and 283 parking stalls. Of the 151 condominium units, 5 are designated as commercial and 146 are residential units. The 5 commercial units are located on the lower and upper floors of the project facing Ala Moana Boulevard. Access to these units is via Ala Moana Boulevard or from the parking garage. *Parking stalls may be assigned separately or in bulk.

110*

18,117 SF

PROPERTY SUMMARY

Asking Price $5,200,000

Stabilized NOI $699,000

NOI 2017 Actual $413,000

Address 1910 Ala Moana BoulevardWaikiki, Honolulu, Hawaii 96815

Tax Map Key (1) 2-6-8:15, CPR No. 1, 2, 3, 4, & 5

Number of Subject Units 5 Commercial Condominium Units

Total Floor Area Commercial Units 19,572 SF

Rentable Area

Unit 1 - 2,480 SF 1,661 SF Outdoor Seating

Unit 2 - 670 SF

Unit 3 - 900 SF

Unit 4 - 1,570 SF

Unit 5 - 10,836 SF

Total - 18,117 SF

Occupancy 36%

Parking Stalls 110*

Land Area 35,365 SF

Tenure Leasehold with known rents through June 30, 2025 (expiration June 30, 2051)

Year Built 1978

Zoning Apartment Mixed Use Subprecinct

Special District Waikiki Special District

*Parking stalls may be assigned separately or in bulk.

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INVESTMENT HIGHLIGHTS

• MINIMAL GROUND RENT PAYMENTS THROUGH JUNE 2025 - The Property is held by way of a long-term lease with low ground rent payments of $603.33 per month through June 30, 2025.

• RARE GROUND FLOOR COMMERCIAL CONDOS - Commercial condos in Waikiki rarely become available for purchase in Waikiki.

• OWNER-USER OR ANCHOR TENANT OCCUPANCY - This asset is well positioned to accommodate an owner-user or anchor tenant. Businesses requiring more than 10,000 SF of space in the area (especially those with street frontage along a major thoroughfare) have limited options.

• BEST IN CLASS PARKING RATIO - The large number of subject parking stalls provides a competitive advantage for the subject Property in a market with limited parking.

• SIGNIFICANT BARRIERS TO ENTRY - Waikiki has a very limited supply of ground floor retail space with street frontage along a major thoroughfare. Within Waikiki’s supply-constrained inventory, seldom do these types of properties becomes available for purchase.

• DISCOUNT TO REPLACEMENT COST - Development is limited due to lack of available land in Waikiki, high construction costs, and low unemployment rate.

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TOP PERFORMING DESTINATION MARKET WITH LARGE VISITOR POPULATION

Waikiki benefits from 4.65 Million visitors annually and $15.6 Billion in total visitor expenditures. Nearby hotels include the Hilton Hawaiian Village, Hale Koa, Ilikai Hotel, the Modern, Doubletree by Hilton.

UNIQUE HAWAIIAN LOCATION

Prominent corner location at the entrance of the world-famous submarket, Waikiki, with 182 feet of street frontage along major thoroughfare, Ala Moana Boulevard. Within a one to two minute walk from Kalakaua Avenue, the primary corridor through Waikiki, and about a 10 minute walk from Ala Moana Center (one of the highest grossing malls in the U.S. with over 2 million visitors annually).

WELL-LOCATED ASSET ON HIGHLY TRAVELED ROAD

Enjoys visual prominence within the neighborhood due to its corner exposure and high volume of pedestrian and vehicular traffic (20,755 cars per day) in the immediate area.

DENSELY POPULATED AREA

Surrounded by several apartment buildings and residential condo units in the most densely populated residential demographic bases in Hawaii with over 26,000 people within 1/2-mile radius.

LOCATION HIGHLIGHTS

6

VALUE ENHANCEMENT OPPORTUNITIES

OWNER-USER OPPORTUNITY

Condo Unit Nos. 4 & 5 contain 10,836 SF of rentable area and recently became available for immediate occupancy. This presents an excellent opportunity for an owner-user to purchase the commercial condominium units, occupy Units 4 & 5, or a portion thereof, while offsetting ownership expenses with income received from the other commercial condo units.

SELL OFF INDIVIDUAL CONDO UNITS

An investor or owner-user could sell off individual condos which typically trade for more than a portfolio/bulk sale.

UPGRADE THE AESTHETIC APPEAL OF THE COMMON AREAS

Current ownership has not been focused on the maintenance of the Property. The building exterior, walkways and landscaping should be renovated and modernized to attract more customers.

NEW ANCHOR TENANT

Condo Units 4 & 5 are currently being marketed for lease. By securing a strong anchor tenant, the upgraded tenant mix will draw patrons to the Property resulting in an increase in sales and higher NOI for the Property.

INCREASE PARKING REVENUE

The parking garage is currently under-utilized. Enforcing an aggressive marketing plan and advertising public parking will attract more customers and increase revenue. Additionally individual stalls may be assigned separately or in bulk.

DEMISE CONDO UNIT NO. 5

Units 4 & 5 could be demised into two (2) approximately 5,000 SF spaces which would expand the rental pool in a submarket with higher demand for spaces in this size range. In addition, this may result in increased income since smaller spaces typically achieve higher PSF rents than larger spaces.

7

PROVIDE MORE VISIBLE SIGNAGE

Exposure and visibility is limited for the lower level units located below Units 4 & 5. By developing a master signage plan, tenants’ signage can be maximized while having a more cohesive look which will entice more foot and vehicular traffic.

IMPLEMENT A MARKETING PLAN/PROMOTIONS PROGRAM

Target a more diversified consumer base by implementing a marketing plan/promotions program. Advertising of the Property and its tenants in local and tourist publications will generate additional business and increased sales.

LOWER OPERATING EXPENSES BY FURTHER ENHANCING ENERGY

EFFICIENCY

Hawaii is ranked #1 as having the most expensive electricity rates in the U.S. Cost savings can be realized by retrofitting to energy efficient fixtures and appliances.

Other Operating Enhancements (amortize Cap Ex in CAM, remove extraneous recurring operating expenses).

MAXIMIZE GROSS SALES BY EXTENDING EVENING HOURS FOR THE

CENTER

Percentage Rent may increase by extending the hours of the center.

UPSIDE POTENTIAL DUE TO BELOW MARKET RENTS AND MONITORING OF

GROSS SALES

In-place rents are below market rates with upside potential.

POTENTIAL TO RECOVER GROUND RENT

The tenant leases currently do not allow for the pass through of ground rent. There is potential to recover additional operating expenses by converting to true net leases for all new leases and renewals.

8

SITE PLAN

Drawing not to scale

9

Drawing not to scale

N

1910 Ala Moana Blvd

The Royal Hawaiian

Hale KoaLuxury Row

T Galleria

Diamond Head

International Marketplace

Waikiki Shopping Plaza

Hyatt Regency Waikiki

Waikiki Beach

Sheraton Waikiki

10

VISITOR AIR ARRIVALS

DOMESTIC: 5.97M

INTERNATIONAL: 2.85M

Source: Hawaii DBEDT & HTA,

Tourism Research

KAUAI

OAHU

MAUI

HAWAII

NIHUA

LANAI

KAHOOLAWE

MOLOKAI

HONOLULU

LIHUE

OAHU

HONOLULU

KAHALUI

HILO

KAILUA-KONA

WAIKOLOA

LAHAINA

Hawaii tourism is expected to have its best year ever in

2018

The State is on pace in 2018 to post its seventh straight year of record

arrivals and spending

March 2018 set the record for the most visitors in a single month at

903,550

LENGTH OF AVERAGE STAY

9.85

TOTAL VISITOR EXPENDITURE

$15.6B

DAILY SPENDING PER VISITOR

$209

$

Hawaii visitor spending increased 10.1% to $4.82 Billion in First Quarter 2018

Section

11

VISITORS TO HAWAII GO TO WAIKIKI

4.65M

The State Department of Business, Economic Development and Tourism expects arrivals will

increase 2.7% in 2018 and that spending will grow 4.5%.

TOTAL VISITORS (BY CRUISE SHIP)

211K

PASSENGERS ANNUALLY

9.38M

JULY BUSIEST MONTH FOR TOURISM

891,878

12 | Cushman & Wakefield |

Investment

CONTACTS

JOSEPH T. HAAS (B) Managing Director +1 808 544 1886 jhaas@chaneybrooks.com

ANDREW D. STARN (B) Senior Vice President +1 808 544 1888 astarn@chaneybrooks.com

CUSHMAN & WAKEFIELD CHANEYBROOKS 1440 Kapiolani Blvd., Suite 1010 Honolulu, Hawaii 96814

ChaneyBrooks.com | CushmanWakefield.com

©2018 CUSHMAN & WAKEFIELD CHANEYBROOKS. NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IS MADE TO THE ACCURACY OR COMPLETENESS OF THE INFORMATION CONTAINED HEREIN, AND SAME IS SUBMITTED SUBJECT TO ERRORS, OMISSIONS, CHANGE OF PRICE, RENTAL OR OTHER CONDITIONS, WITHDRAWAL WITHOUT NOTICE, AND TO ANY SPECIAL LISTING CONDITIONS IMPOSED BY THE PROPERTY OWNER(S). AS APPLICABLE, WE MAKE NO REPRESENTATION AS TO THE CONDITION OF THE PROPERTY (OR PROPERTIES) IN QUESTION.