FOR SALE Rare Honolulu High-rise Redevelopment Opportunity

Transcription

1 FOR SALE Rare Honolulu High-rise Redevelopment Opportunity 1500 kapiolani boulevard Waikiki Hawaii Convention Center Ala Moana Beach Park Makaloa Street Keeaumoku Street

2 For Sale :: Rare Honolulu High-rise Redevelopment Opportunity Investment Summary OFFERS DUE: December 18, 2014 ADDRESS: 1500, GROSS LEASABLE AREA: Approximately 73,103 square feet LAND AREA: Approximately 42,935 square feet TENURE: Fee Simple OCCUPANCY RATE: 100% 2015 PROJECTED NOI: $1,004, BUDGETED NOI: $944,750 TAX MAP KEY NO. (1) : 7 PARKING: 73 stalls ZONING: BMX-3 (Community Business Mixed Use) FAR (current zoning): 2.5 FAR (TOD zoning): 7.0 HEIGHT LIMIT (current zoning): 250 feet HEIGHT LIMIT (TOD zoning): 400 feet Property Overview This high-rise development opportunity is in the heart of Ala Moana and the Kapiolani corridor. Located across from the world renowned Ala Moana Center, Hawaii s largest and busiest shopping center, the Property is walking distance to Waikiki and a short drive to downtown Honolulu. The land area for sale is approximately 42,935 square feet together with air rights for development above the brand new Walgreens flagship store. The store is built to support a structure above the development reaching approximately 250 feet. (The adjacent Walgreens flagship store is available as a sale-leaseback opportunity under a separate offering.) Under current zoning, the air rights allow for an estimated floor area (including open space bonuses) of 52,579 square feet to be transferred from the Walgreens site to the 1500 Kapiolani site. The proposed Transit Oriented Development (TOD) zoning for the site allows for a 400 foot height limit and 7.0 floor area ratio. This creates the possibility of a high-rise residential or office development with street-level retail space in a highly-trafficked area of Honolulu with over 47,000 cars passing by the Property daily & 1488 Kapiolani Air Rights 1500 Kapiolani

3 1500 kapiolani boulevard Property Highlights HALEIWA Located within a 1/4-mile of the planned Ala Moana rail station which provide for Transit Oriented Development (TOD) density benefits and use incentives Ideal for redevelopment of a high-rise office or residential condo building Current height limit of 250 feet and 2.5 FAR with potential of 400 feet height limited and 7.0 FAR per TOD zoning Few fee simple development opportunities along major thoroughfare MILILANI AIEA KANEOHE Property Location KAPOLEI HONOLULU Excellent street visibility along WAIKIKI Over 47,000 cars pass by the Property daily Highly desirable location, across from bustling Ala Moana Center offering a wide variety of retail and entertainment activity Walking distance to the proposed Ala Moana rail station, Hawaii s Convention Center, Ala Moana Beach Park and Waikiki with shopping, restaurants and nightlife Easily accessible from the H-1 Freeway Minutes from Honolulu s Central Business District Potential high-rise view at 400 feet

4 TOD Zoning Aerial :: Proposed Ala Moana Rail Station 1470 & 1488 Kapiolani Air Rights PROPOSED ALA MOANA RAIL STATION Keeaumoku Street 1500 Kapiolani Kalakaua Avenue Potential TOD Zoning 1/4-Mile Radius Ala Moana Boulevard Atkinson Drive Hawaii Convention Center Ala Moana Beach Park Waikiki

5 1500 kapiolani boulevard Potential Development Scenarios Transit-Oriented Development Construction has begun on the long-awaited Honolulu Rail Transit System which will service 21 rail stations between Kapolei and Ala Moana. Rail service is anticipated to commence in The City of Honolulu has drafted special Transit-Oriented Development (TOD) zoning plans for the neighborhoods surrounding the stations. Since the Property falls within a ¼ mile radius from the Ala Moana station, it is subject to TOD zoning which has the potential to be built up to 400-foot heights with up to 7.0 floor area ratio (FAR). The Ala Moana district and station is one of the most urban and complex neighborhoods along the rail corridor. Its needs and opportunities are unique and particular to its place and its people. The vision and principles of the station respond to the comments and concerns from the Ala Moana community and their vision for the future. The site provides for various redevelopment options. The owner has prepared multiple redevelopment scenarios for consideration. Scheme 1 (Based on Interim TOD Guidelines) Joint development of the 1500 Kapiolani site with the current Walgreens flagship store site (1470 & 1488) with remaining TOD FAR being transferred to the 1500 Kapiolani site (7.0 FAR). Allowable Area Under TOD Zoning Address Land Area FAR (7.0) 1500 Kapiolani: 42,935 SF 252,266 SF 1470 & 1488 Kapiolani: 36,083 SF 300,545 SF Total: 78,973 SF 552,811 SF Walgreens Store: (37,516 SF) Total Developable Area: 515,295 SF

6 Potential Ocean & Diamond Head Views at 400 Feet Potential ocean view at 400 feet Waikiki Beach Downtown Hawaii Convention Center Ala Wai Boat Harbor Magic Island Ala Moana Beach Park Ala Moana Building Planned Ala Moana Rail Station Potential Diamond Head/East view at 400 feet Diamond Head Waikiki Kalakaua Avenue Hawaii Convention Center

7 1500 kapiolani boulevard Market Overview The Kapiolani Corridor was the face of new development for the island during the last boom cycle and continues to be active in the current construction boom. Thousands of new condo units were delivered and thousands more are planned for the area and the adjacent Kakaako district. Retail development has also been prevalent with new buildings built at the Ward properties and the current redevelopment of the Sears store site at Ala Moana. Office development has been minimal, with the most recent large project being the Hale Pawaa medical building built in Traditional office rents are not high enough to financially support new construction. The central location of the area in the urban core makes it an attractive area for residents and businesses. The Kapiolani/Kakaako/King Street submarket is the second largest office market on Oahu after the Central Business District ( CBD ). This market has more than 3.7 million square feet of office space and has historically had a lower vacancy rate and higher rents than the CBD. As of mid-year 2014, average asking base rents are $1.53 per square foot per month ( psf/mo ) versus the CBD average of $1.34 psf/mo. The current vacancy rate of 13.35% is higher than the norm for the market which was below 7.0% before the recession hit. Large government agencies moved out the district into their own facilities which left large vacancies. The subject site can also accommodate residential uses. New high-rise condo projects appear to be in high demand as presales for these buildings have been brisk. Prices for these newer units averaged $725 per square foot in Planned condo units will provide buying opportunities for a broad spectrum of buyers from first time homebuyers and investors to high-end buyers Kapiolani Potential ocean view at 150 feet Waikiki Ala Moana Beach Park Keeaumoku Street Planned Ala Moana Rail Station

8 FOR SALE Rare Honolulu High-rise Redevelopment Opportunity 1500 kapiolani boulevard Potential ocean view at 250 feet Contact Us MARK D. BRATTON* (R) CCIM Investment Services Division COLLIERS INTERNATIONAL 220 South King Street, Suite 1800 Honolulu, HI *Bratton Realty Advisers, Ltd. Exclusively contracted to Colliers International HI, LLC This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s) All rights reserved.

9 1500 Confidentiality Agreement CONFIDENTIALITY AGREEMENT THIS CONFIDENTIALITY AGREEMENT (this "Agreement") is made as of the day of, 2014, by ("Recipient"), whose principal place of business and post office address is at, in favor of Walgreen of Hawaii, LLC, whose principal place of business and post office address is at P.O. Box 901, Deerfield, IL 60015, the owner of the Asset (defined below) ( Owner ), with respect to the fee simple interest in the property commonly known as the Heald College Building and the air rights above the Walgreens Flagship Store, containing approximately 128,738 square feet of land, located at 1470, 1488 & 1500, City & County of Honolulu, State of Hawaii, TMK Number(s) (1) : 7, 8, 9, & 10 and all improvements thereon ( Asset ). 1. Background. Owner and/or Owner s broker, Colliers International ( Colliers ) may be providing and/or making available to Recipient information and/or documents relating to the Asset. The information may be presented to Recipient in various forms including, but not limited to, photocopies of documents, digital information on CD-ROM, digital information sent via electronic mail, and/or digital information accessible via the Internet (collectively Information ). 2. Confidentiality. Recipient, including, but not limited to its directors, officers, employees, managers, members and/or shareholders, agrees that it will keep all Information, including any information derived from the Information, regardless of whether the Information is marked or specifically identified as confidential or proprietary, confidential, except as to Recipient s professional consultants (disclosed to Owner in advance) who will be evaluating the feasibility of Recipient acquiring the Asset. Recipient further agrees, prior to disclosing the Information to any consultants, that it will inform such consultant that they are required to observe and maintain the confidentiality of the Information and the provisions of this Agreement. 3. Limitation on Use of Information. All Information furnished to Recipient by Owner will be used solely by Recipient for the purpose of evaluating the feasibility of purchasing the Asset and Recipient agrees not to use the Information, including any information derived from the Information, for any other purpose. 4. Limitation on Disclosure of Information. Recipient will not disclose to anyone, with exception to its disclosed consultants, the existence of or any other aspect of the Information or any information derived from the Information. 5. Prohibition Against Copying and Return of Materials. No copies of the Information shall be made or disclosed to anyone whatsoever without the prior written consent of Owner. Upon the completion of the above-described evaluation, or upon request by Owner, Recipient shall return to Owner all Information in the form that was provided to Recipient and any and all duplications thereof. 6. Damages. Recipient acknowledges and agrees that Owner has a substantial, material and proprietary interest in the Information and that if the Information or any other information protected under this Agreement is disclosed by Recipient in any respect whatsoever without Owner s prior written consent, Owner may suffer immediate and irreparable harm and may be substantially and materially damaged. 7. Remedies. In the event Recipient breaches any of the conditions set forth in this Agreement, Owner shall have the right to exercise all of its rights and remedies at law and equity, including, without limiting the generality of the Page 1

10 1500 Confidentiality Agreement foregoing, the right to obtain injunctive relief. The non-prevailing party shall pay all costs and expenses, including, without limitation, reasonable attorneys' fees incurred by the prevailing party in enforcing any of the covenants or conditions contained in this Agreement. 8. Agency. Owner is represented by Colliers, a licensed real estate broker in the State of Hawaii. Buyer shall be solely responsible for compensating its real estate agent and other consultants, if any. Recipient s Broker: (if not represented please write NONE ) Company: Agent: License No.: Address: City: State & Zip: Telephone: ( ) Fax: ( ) 9. No Waiver. No waiver by Owner of any breach hereunder shall be deemed a waiver of any other or subsequent breach. 10. No Oral Modifications. This Agreement may not be altered, amended, changed, waived, terminated or modified in any respect or particular unless the same shall be in writing and consented to by Owner and Recipient. 11. Successors and Assigns. This Agreement shall inure to the benefit of Owner and to its successors and assigns and be binding upon Recipient and its legal representatives, successors and assigns. 12. No Third Party Beneficiaries. This Agreement is not intended to confer any benefits upon any persons, firms, corporations or other entities except Owner and Recipient and their respective directors, officers, employees, managers, members and/or shareholders. 13. Choice of Law. This Agreement shall be construed, governed and enforced in accordance with the laws of the State of Hawaii without giving effect to principles of conflict of laws. 14. No Other Agreement. Recipient acknowledges that this Agreement is solely for the purpose of establishing the confidentiality of the Information and does not grant Recipient any exclusive or other rights in connection with the purchase of Owner s Asset. (Signatures on following page) Page 2

11 1500 Confidentiality Agreement IN WITNESS WHEREOF, Recipient has executed this Agreement as of the day and year first hereinabove set forth. Recipient Signature Date Print Name Title Company/Organization Address City/State/Zip Telephone Facsimile Company/Organization Website Additional Partner(s)/Broker(s) requesting to review due diligence documents: Signature/Date Company/Organization Print Name Signature/Date Company/Organization Print Name Please return signed Confidentiality Agreement (preferably via in PDF format) to: COLLIERS INTERNATIONAL Attn: Mark D. Bratton* (R) CCIM Direct: Fax: S. King Street, Suite 1800 Honolulu, HI * Bratton Realty Advisers, Ltd., exclusively contracted to Colliers International HI, LLC Page 3