1525 Liholiho Street

Cushman & Wakefield ChaneyBrooks is pleased to present for sale 1525 Liholiho Street, a fully entitled, ready to issue permit development opportunity to build 37 apartment units in the heart of urban Honolulu. The entitled plans contain a mix of 20 two-bedroom units and 17 studio units with 14 parking stalls. The building has two sizeable spaces dedicated exclusively for amenities allowing for enough space to include both a fitness center and multimedia/entertainment room, giving residents the option to host parties or football Sunday get togethers in amenity rooms usually only found in luxury projects.

Having made use of density bonuses offered through Honolulu’s affordable rental housing program, the building’s income restricted units are the perfect option for Honolulu families, young professionals, university professors and students who want to live in the heart of Urban Honolulu at affordable rental rates. With a multitude of potential incentives and rebates being offered by the City, the project may allow a developer property tax exemptions for units rented to those making less than 80% AMI, whilst also providing the option of renting units up to 100% AMI. The shortage of affordable housing options makes this the perfect opportunity for those looking for an opportunity to own a new, CMU building where the location and demographics should ensure low vacancy rates for decades to come.

Investment Highlights
DEVELOPMENT OPPORTUNITY – The Property offers an excellent opportunity for development of a ready-to-issue 6-story affordable low-rise apartment building.

PERMITTED PROJECT WITH APPROVED PLANS – The Property is permitted for 37 affordable residential units. The Seller’s securement of these entitlements provides a potential buyer a substantial time and cost savings in the pre-development stage as the planning and entitlement process can be arduous and lengthy.

SHORTAGE OF AFFORDABLE HOUSING UNITS – According to the 2019 Hawaii Housing Planning Study*, Oahu needs an additional 22,168 housing units over a five-year period to meet projected demand for housing. The City found approximately 95% of Honolulu’s low-rise apartment buildings are more than 40 years old and need to be renovated or reconstructed. Old low-rises were built prior to present restrictive codes and cannot be rebuilt under current codes.

AFFORDABLE HOUSING INCENTIVES – Various incentives are offered or proposed for affordable housing projects, including property tax exemptions, pre-construction grants and completion bonuses.

PRIME LOCATION WITH EASY ACCESS – Centrally located in urban Honolulu, just minutes from Honolulu’s Central Business District (CBD), Waikiki, Ala Moana and Kakaako. The site has easy access to the H-1 Freeway, University of Hawaii and Punahou School.

DENSELY POPULATED AREA – The asset is surrounded by several low and mid-rise apartment buildings, in a densely populated residential demographic base, with over 60,000 people living within 1-mile radius. There is a strong demand for rental units with limited supply in the submarket.

CONVENIENT PUBLIC TRANSPORTATION – Several bus stops are located nearby, as well as the Biki station, Honolulu’s bikeshare transportation system, which is located across the street from the Property.