MIXED-USE INVESTMENT S. HATA BUILDING 308 KAMEHAMEHA AVENUE HILO, HAWAII SCOTT EDEN D C E:

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1 MIXED-USE INVESTMENT S. HATA BUILDING 308 KAMEHAMEHA AVENUE HILO, HAWAII SCOTT EDEN D C E: seden@cbi-hawaii.com

2 MIXED-USE INVESTMENT S. HATA BUILDING SENIOR SALES ADVISOR 1712 SOUTH KING STREET, SUITE #201 HONOLULU, HI SCOTT EDEN RS71206 Independently Owned and Operated Procuring broker shall only be entitled to a commission calculated in accordance with the rates approved by our principal only if such procuring broker executes a brokerage agreement acceptable to us and our principal and the conditions as set forth in the brokerage agreement are fully and unconditionally satisfied. Although all information furnished regarding the property for sale, rental, or financing is from sources deemed reliable, such information has not been verified and no express representation is made nor is any to be implied as to the accuracy thereof and it is submitted subject to errors, omissions, change of price, rental or other condition, prior sale, lease or financing, or withdrawal without notice and to any special conditions imposed by our principal.

3 INVESTMENT HIGHLIGHTS FEE SIMPLE OWNERSHIP/TRUE PRIDE OF OWNERSHIP/REAL ESTATE AND QUALITY OF CONSTRUCTION Rare opportunity to own Hawaii Fee Simple Real Estate Listed on the National Register of Historic Places since 1991, the two-story S. Hata Building in downtown Hilo is one of the Big Island s most prominent architectural landmarks Hilo s S. Hata Building was unique as a symbol of progress in the outlying island city. When it was constructed in the original section of town, the only other masonry buildings in Hilo were the sugar- funded Hackfeld Building and the Masonic Hall. It therefore stood as a symbol of the upward mobility of this segment of the population. True Pride of Ownership PRIME DOWNTOWN LOCATION / WATER FRONT LOCATION / EXCELLENT STREET FRONTAGE AND VISIBILITY which provides leadership to make Downtown Hilo a safe and attractive place to live work Intrinsic Real Estate Value Cruise ships frequent the area often providing mass tourism dollars to the tenants STRONG RENTAL GROWTH & LEASE UP OPPORTUNITY / DIVERSIFIED INCOME STREAM S. Hata building currently has 25.34% vacancy of retail on the first floor and 50% vacancy of office on the second floor, which allows the investor to generate large returns through lease up Potential for substantial profit upon future sale once the property is stabilized Increases cash flow and return on investment Street retail and service retail vacancy for lease up The S. Hata building has breathtaking unobstructed ocean views from both retail and executive offices located in the most desirable waterfront location in Downtown Hilo The S. Hata Building is located at the intersection of the main thoroughfare Kamehameha Avenue (28,400 vehicles per day) and Mamo Street Located just across the street is Mo oheau Bus Terminal, the central station for the Hele-On bus system, which is home to the Visitor Information Center. It s also Headquarters for the Hilo Downtown Improvement Association,

4 INVESTMENT HIGHLIGHTS HIGH BARRIER TO ENTRY & SIGNIFICANT COST TO BUILD IN HAWAII / BELOW REPLACEMENT COST Historically, Hawaii commercial development can take up to ten years from the initial design to fully build out There are potential political, environmental, and local constraints on new commercial development Replacement cost for a building of this scope can run anywhere from $400 $500/sf dependent upon design and construction cost. Subject property is $244 psf, which is below replacement cost Minimal water front retail development opportunity exists Intrinsic real estate value EXCELLENT NEW FINANCING OPTIONS IDEAL LOCATION FOR EXECUTIVE OFFICES Located within close proximity to Hilo International Airport and cruise ship terminal Within walking distance to the local government buildings Flexible floor plans with attractive lobby and corridors with historical photos HAWAII TOURISM IS A BOOMING ECONOMIC DRIVER Over 15% increase in visitor arrivals over the past two years Approximately 9.63 million people will visit the Hawaiian island chain, up from 9.38 million in 2013 Newmark Grubb CBI Hawaii is pleased to offer for sale the rare opportunity to own the Fee Simple Interest (Land & Building) in a multi-tenant retail/office mixed use NNN leased, value add investment, located in Hilo, Hawaii. The subject property is open to new debt at today s outstanding rate and terms Several attractive financing options available to an investor which will enhance the overall return

5 INVESTMENT SUMMARY OFFERING Newmark Grubb CBI Hawaii is pleased to offer for sale the rare opportunity to own the Fee Simple Interest (Land & Building) in a multi-tenant retail/office mixed use NNN leased, value add investment, located in Hilo, Hawaii. The subject property is currently 60% leased providing future upside through leasing for the investor, in addition to acquiring a true pride of ownership asset. Listed on the National Register of Historic Places since 1991, the two-story S. Hata Building in downtown Hilo is one of the Big Island s most enduring architectural landmarks. It was originally erected in 1912 by Japanese immigrant Sadanosuke Hata and his family as a general store. The building has survived tsunamis, volcanic eruptions, earthquakes and urban renewal to become a testament to Hawaii s pioneering past. The S. Hata building is comprised of retail on the first floor including shopsand restaurants (Cafe Pesto), while the second floor is comprised of executive office space. There are (3) penthouse executive office suites creating a partial 3rd floor on a portion of the back of the building. which provides leadership to make Downtown Hilo a safe and attractive place to live, work and visit. Hilo is the port of call for the cruise ship industry, providing security and stability for all the down-town tenants from the cruise-ship consumer tourism spending. PRICING $3,600,000 NET OPERATING INCOME: $173,320 (2017 YE) / $176,987 (2018 PROJ) CAP RATE: 4.81% (2017 YE) / 4.92% (2018 PROJ) POTENTIAL GROSS INCOME: $598,962 BASED ON 100% OCCUPANCY PROPERTY SPECIFICATIONS RENTABLE AREA: 18,900 SF VACANCY (SF %): 7,550SF 39.95% YEAR BUILT / RENOVATED: 1912 / 1983 LAND AREA: 0.28 ACRES (12,197 SF) PROPERTY ADDRESS: 308 KAMEHAMEHA AVENUE, HILO, HI PARCEL NUMBER: MAJOR TENANTS: CAFÉ PESTO The S. Hata Building is located at the intersection of the main thoroughfare of Kamehameha Avenue (28,400 vehicles perday) and Mamo Street in downtown Hilo. The subject property is located on the ocean front board walk and main retail corridor with unobstructed panoramic ocean views overlooking Hilo Bay. The S. Hata property benefits from the immediate proximity to the Hilo International Airport, cruise ship terminal and Mo oheau Bus Terminal, the central station for the Hele-On bus system, which is home to the Visitor Information Center. It s also Headquarters for the Hilo Downtown ImprovementAssociation, CAPITAL IMPROVEMENTS : $120,000 HVAC EQUIPMENT, LOBBY RENOVATIONS (FLOORING/PAINT- ING/SIGNAGE), ELEVATOR REPAIRS $100,000 TI ALLOWANCE PER CAFÉ PESTO S NEW LEASE. 2018: $66,000 ROOF REPAIRS, PAINTING, WINDOW REPAIRS, NEW CARPET

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