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HomeMy WebLinkAboutCOM 0268.011 1996-1998 ~ - _ , - - °7 EJ'~ 29 (Pi 2 ~`i Hilo Office Hawaii Business Cemer ~ ' 99 Aupum Streat " ' Suite 118 Bus: (800)961 X016 COU~~i i „;,11~ Hilo, Hawaii 96720 Fax: (808) 961-6278 Council Chairman Jimmy Arakaki 25 Aupuni Street, Hilo, HI 96720 Dear Chairman Arakaki, I am contacting you at the recommendation of Della Yamashiro with respect to a commerirally zoned building I have listed for sale in the heart of downtown. With the recent talks of re-locating the Hawaii Commuity College Campus downtown, I have been promoting this investment opportunity to many different people who are working towards this ambition. Naturally, I wanted to forward a copy of the mazketing brochure on this building to you as well, with the hopes that you will give it your consideration. I have provided you with several copies of this brochure and would appreciate it if you could forward them onto your fellow council members or anyone else you feel should have copies. In my estimation, the Cunningham Building would be an excellent opportunity for the Community College should it move into the downtown area. The way the building is set up, and it's key location on Haili Street, would be ideal for both dormitory and classes alike. I have highlighted a few ideas below which I feel make it uniquely attractive for these purposes: * The Location... While the street address is extremely central in downtown Hilo, the inner courtyards and design of the building offer seclusion and protection. * The Proximity... Residents of the complex will be able to enjoy the convenience of shopping,( Sack-n-Save is just up the street), and other ammenities within walking distance , (i.e. the Post Office,banks, etc.), assuring the resident's independent living. * Space... There are a total of 45 residential units. The rooms are good sized allowing ample space for a bed as well as some living area. The rooms have good ventilation with large windows and aze bright and comfortable. The building is L-shaped and the hallways aze wide...easily monitored for security etc. * Plumbing There is plumbing to each room in the Cunningham Building. Some rooms even feature their own shower and toilet but even those that don't, offer the ammenity of running water both for cooking and cleaning. * Renovated... The Cunningham Building was extensively renovated in the latter part of 1995, complete with re-wiring and re-plumbing. The building is well maintained and in great condition as you can view upon visiting the site. Ci~cz~:,,. bd^ L~r.1 ~_2 9__1997_ * Common Area... There is a nicely landscaped inner courtyard with the two levels of apartments built around it. There is also currently a whazehouse in this courtyazd which could possibly be used for a social hall, common living azea/game room, or kitchen. There is electric to this building. The entrance into the apartment complex is gated for security. * Retail Space... There are four retail storefront units which are currently on short term leases to different retail shops along Haile Street. These spaces could easily be used for administrative offices or classrooms. * Assumable Mortgage... The current mortgage can be assumed which could offer an alternative route in financing this investment,( more detailed information is available in the packet). * Owners are Contractors The owners of the Cunningham Building are licensed contractors. Should there be needed improvements to the site in order to suit it for an investor's needs, it may be possible to work something out. The Cunningham Building is a well located, well maintained and well priced building. Though it is an attractive investment just by nature of the current income it generates as an apartment building, I feel that it would be exceptionaIIy suitable for the purposes a Downtown Community College. I encourage you to call me with any questions regazding this information. I look forward to the opportunity to speak with you . Sincerely, G~%~~%~~ Christine deSilva, RA , i CnUi v i ~ ~ The C unni n ham g Buildi Investment nnnnrt mi Residential & Commercial Units in Downtown Hilo 104 to 114 Haili Street Hilo, HI 96'120 9196 '1 . r ~t ~ ~ r ~ . ~ r ~ i . - ' ~ m... 4.. ~ , a z. ~ ~n ; ,g ~ ~ ~ ~ ~ . i ~ ~ f ~ M ! This marketing brochure is neither an offer to sell, nor an offer to buy. The financial and other data contained herein has been obtained from various sources. While case has been exercised in the collection of this data, no guarantee can be made as to its completeness or accuracy. Table of Contents The Opportunity 1 Solid Investment Returns Location, Location, Location The Property The Improvements 2 The Zoning 2 The Location 2 Map of Hilo Tax Parcel Map Tenancy & Leases 2 Property Managment 2 Real Property Taxes 3 Assumable First Mortgage 3 Financial Performance Revenue Determinants 4 Profitability Projections 4 Rentroll Schedule Financial Projections Schedule The Valuation 4 Summary 5 The Opportunity The Cunningham Building is a fee simple property consisting of an approximate 14,500 square feet of impirovements with mixed oommenrial and residential use. Located on Haiti Strut in Downtown Hilo, the lot size is appr+oxiraaOely 10,753 square feetwith a CQ-20 Zoning. Tax Map Key Nuber 3/2-3-6-10, MLS Number 78614. Solid Investment Returns pTh~e Cm~tamgneinghoacmcuBpueinldi~ offers an attractive operating cash flow anazd a high 03 % tali rare based onycrareat mcxtme, and these rstum sho d improvea~ an~~lY inflationary environment Location, Location, Location... The Downtown Lrtprovemern Association of Hilo has bem actively involved in dre re-vi and rc-establishment of Downtown Milo as the social, cultural and cmoer of the commuroty sinrx .Th~ha~ hero tr+emendouslysupportive of renovation projtxts im+clviag downtown b ' Conseque~ly, the downtown arse has soerr a treeadous boost in image and traffic in the last few years.ThC ~'u++~ Building will continue to benefit from it'S CPdtl2l location well into the future. The valuation far the property is set at 1)55844,000. This property will be of particular interzst to inva4oors seelang solid imrestmmt returns and income growth mho the future, underpinr>ed by the strong values associated with the underlying Hawaii trot estate. Interested parties should contact: Mrs. Christine de3ilva, RA Clark Realty Corporation 99 Aupuni Sheet, Suite 118 Hilo, HI %720 Ph: (808)%1-6015 Fax: (808)%1-6278 ~ ~ ~ ~ • ' ~ J - - V IU II ~ C ~~,IK; .,..',~~•s I',rnfi~ Ori an nl WAINAKU ~ .YID ' - 1 Polnl _ `dpnaDyFelra n~aa~w roan I ~ I ~ ll R ~ -i. eun lya r. C ~ - ~ 19 " - oolvwH ~ P~ m y a nav. ~ o BhY q ' hNM111L11 FIIUfO cu.+v _ ~ s a r NEAUKAHA - _ Ir ~coe ae r~ ~ ro zIP c~oE ' 96720 19 - e~wp , 96720 E ,,g, s' W ~ ~ ~ W Mµ ~ ~ ~ ~ ' Hilo Internahonel AirOOrt ~ E kr a~yp 200 m ? }lkiloe ~ 11 lGena~al Lymen Felm •o :Pore s- uw~ ? ~1 ~ eeai aw„' ~ ~ MILOi ~ ~ ~ ~ n w ,j3 ~ K kh w¢ a w ~ HoR I vurc ~ 1,_ ~ WAIAKFA Y NJI 4 - ~ fi} I ~ - ~ Ae rvabon ja/`~ ~ ~ b~+S a yy_. H~ s s' H i .nTM~ s~ - P• a - ~ zooo ewe ~ ...„...x va,a~ v ' i / _ y i I 5 6 I I'~~. c~ L~ s •'l N s r. ~ F \W 1 a ~ o ~ A p eF wj+ - _ _ T- ~ $ GUAINANOeP, K z ~ - p - _ ~ xno © K _ s~ i~ nr'cooE HAWAII _ - 96720 ~ ~ M ~ ~ ~ ` m.a a ~ LOCAiORMAY J 9 M1 ~'L ~~~vu~~ _ S 'dW211 MdP2 ~ " ~ ~ HILO srm" I=E.P~a~el,"~ $ UMF Mawa N SIX - - - ~ 11 slate PO Ue N ' IPf,J¢DE ~'e sii 96720 - = orv~oee H.+ys rte°a W ~b~°~ ~ Inl9,EN HwY ~ GoII C"use. 1 ° ~ Malo~Streel peM O ~ Welekea Foie51 flBSBrve ~`~=oc s Ilrcal Roatl OevBlOOmen! m .tc°e WAIAKfA r ~ vs _ HOMEAEADS ~ ~2~ s'.o I I imi~e ' ~ An J 1c9 ~ SGiES~ ' n°e: R aervu 1 1 1 -F E K ~0 10 II 12 The Property The Improvements... The Cunningham Building is comprised of a coral of 45 residential studio units ar. d four commen:ial units. The structure is a two story, wood frame, walk-up building with residential units connected by coveted walkways.There is a large .paved. inner courtyazd with the building wrapped around it in a °LT" shaped design. The four commercial units are ground level and front Haiti Street The Building was originally constructed in 1930 but under the present ownership of the Cunningham Building Partners, was renovated in 1995. The building was re-wired and re-plumbed and underwent major improvements. The Zoning... The property is zoned CO-20/ Downtown Hilo Commen:ial District indicating that the distract applies to areas suitable and desirable for professional and administrative activities, (Refer to Article 11 of the Zoning Code. CO, Commercial Office Districts). The Location... The Cunningham Building is very centrally located in the heart of downtown, surrounded by grocery stores, fast food chains, independent businesses, churches and pazks. The property site is located on Haiti Street between the two main streets, Kilauea St. and Kinooie St., running parallel through the center of Downtown and a mere three streets up from Bayfront and the ocean. Tenancy and Leases The IFS residential units ate currently rented on six month minimum leases. The 4 Commett:ial tenants and respective leases ate as follows: Precision Bookkeeping 114 Haile Street In exchange for services Isbel Campaign 110 Haiti Street Through 10/1/96 Royce 106 Haiti Street Through 12/97 w/option ' Headline News 104 Haiti Street Month to Month Prnperty Management The Cunningham Building i s currently managed by Wt11 Steiner of MatchMaker Realty under a contract for a period of one year begmtung July 10th, 1995, and thereafter for annual periods unless on or before 30 days prior to the expiration of the itritial or any such renewal period The property trranagement firm is assisted by a resident manage who resides in one of the units rn exchange for his services. Page 2 9196 The Cunningham Building. TMK 312/316/10 PLAT ps' KALAKA UA SL L ( .c.~ r ) r n ~ • t f' .t ~ o e ~ e e of ~ - b r a ~ 1~ ~ ti ` ~ ^ ` ~ t Yr V c ,'L i B I ~ ~ ~+l~ ~ o w 4 . apt.. i ~j y ~ 1!b ` 1 • P ~ ~ ~ ~ ~~///lam~"" O IAN ~ y r•r'•r wwl.~~•~~w ~ A~ Y~ JT PLAT C eT N ~ IV rm ~ R ~ I: Y i $ O • < G Real Property Taxes The cuaent annual taxes for the subject property ate $Z, 112.00 per year. The - - - assessed building value was frozen under Section 56;-Ordinance ~ 613 of the - County of Hawaii on April 15th, 1994 for a period of 7 years due to renovation projects. Though the assessed value on the land tnay increase. the freeze on the building value will help keep these taxes low. The Assumable First Mortgage The current convential mortgage is assumable contingent upon approval of the lender, First Federal Savings and Loan Association of America Original Loan Ammount: $670,000.00 Interest Rate: 9.875% Maturity Date: 1/13/2005 Total Monthly Payment: $6,029.36 (no impounds) Page 3 9/96 Financial Performance ( see attached rentroll schedule on previous page). Revenue is derived from the rental of 45 residential apartments of approximate 400 square feet in size with current rents ranging from $250.00 /month to $400.00 / month and assuming no rent incxease.One residentil unit is occupied by the resident manager free of charge in exchange for his services. Revenues ate also derived from the rental of the 4 storefront commercial units of an approximate 500 square feet in size with rents ranging from $480.00 /month to $485.00 /month. One of the commercial units is currently occupied free of charge by . Precision ,Bookkeeping in exchange for their services. Other revenue is obtained from primarily laundry facilities, the rental of refrigerators, and vending machines. The total annual rental potential at 100% occupancy is $15,375.00 per month,(this does not include one commercial unit, one residential unit, nor other sources of income from refrigerator rentals or vending commissions). As of 8/9/96, the total occupancy is 92%. Profitability Projections The Cunningham Building was recently renovated and expanded from 20 residential units to 45 units and 4 commercial units. Therefore, historical financial statements do not reflect the full potential. The following schedule is constructed to reflect the annual profitability on a going forwazd basis., (see attached schedule on the following page). The profitabilty projections are annualized based on seven months of data from 1/96 through 7/96. The operating cash flow is before depreciation,debt service and taxes. Valuation of the Property... The Cunningham Building is priced at US$849,000. This price reflects a capitalization rate of approximately 10% based on currrerrt income. Buyers will need to participate in an IRC 1031 Exchange. 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I UNIT # ;BATH :DESCRIPTION i COIM~ENTS ~ g~A1 ~~EC{L'FSID.S~.ETOTAL 101 'Private :Standard w/Court Yd View ;Entl w/Diagonal Corm; 1 i 350 25i 375: 375 102 :Private ;Standard w/Court Yd View: 1 300! _ 25; 325; 325 ....103 E Private - .Y~3 ...........:...____°__4---- __..T_._...._...... .Standard w/Court Yd vew : 2 : 300E 25: 325; 325 .......................................y........................................:.............:..........................,.............. 104 :Private ;Standard w/Court Yd Vew ; 2 350> 25 375; 375 ....y ..........y............ ..........y.............................. 1 OS IPnvate :Extra Large w/Court Vew :Resident Mgr. 1 0 , yes; 0 0 . Lndry Rm & Ven_ding_ Income _ _ _ _ 150th ~ ~ 1 50; 1 50 106 ~Seperate ~~Standard Size w/Lanai~ iPb View j F5 285! ~~25; 31 0~ 310 107 :Separate rStandardSizew/Lanai ~ yNOVew s 1 2651 25i 290; 290 108 :Separate ;Standard Size w/Lanai 9NoVew I HS~ ~ 285T 25: 310 310 109 ;Separate :Standard Sizew/Lanai :No View 2751 25; 300fVAC .....:.......................................y..............................r..........~............:.-........................................~ 111 Se rate ~_..___.w.$tandard Size w/lanai ~..°F~/ View......~~...~.~.^_ 1.~L.A..265_.__.25i~_...._...290_.,_.. 290 .......1 Z.---ASeparate ;Larger See w/Lanai _ ;FIJI View 1 ~ 285i 25A 285 285 113 :Separate~LargerSrzew/Lanai :FUIView --~~..-1 : 275; 25; 300% 300 114 ;Private :Extra Large End & Comer :RJI View 2 : 400' 25i 425? 425 .......................................................................y..............................~...........:.............y 1 1 S iPrivate ...........:.........y...................~..........,,.............. 25: 3651 365 6....;. ................:Stantla dSCOUrt Yd& Corner'CVOUrt and view 1 i 2750!...........;............................ ,Separate + 25; 300:`. 300 . 117 :Separate ;Standard+Stairwell ;Court yard view. 305;: 25i 3301 330 __..,...v__........ 118 iSeparate iLargeAII4 :Court yard view ? 1 300; 25: 325; 325 _ - 315 Pa EStandardCourtYd. ~-~-~Courtyardview'____`___,_.___i_..__-,-2651...._____.__.._.._.______. 120 Se rate 25: 290s 290 TOTAL GROUND RESIDENTIAL 19 5,835:; 450 6,285 5,985 PERCENT TOTAL GROUND RESIDENTIAL i 95% : ? i COMMERCIAL UNITS : _ ~ ___...v_.......__._ ..,.._s---.--.--.-_ ---___._..w.._.. 114 Haili St. :PRECISION BOOKKEEPING i 2~ 0 i 0 0 110 Haili St: ISBEL CAMPAIGN ~ 485; 485; 485 ....................................:...............................y........................~ 106 Haili St. ; R?rtf ~ 485;'. 4851 485 104 Haili St. :HEADLINE NEWS 480: 4801 480 TOTAL COl~•1~~ERCIAL y 1,450? 1,450 1,450 PERCENT TOTAL COMN~ERCIAL 100% TOTAL GROUND FLOOR ` 19 :7,285? 450 7,735 7,435 PERCENT TOTAL GROUND FLOOR 96% : ~ ' , _____._.~_._.._~._._._.t~._. ____...,w....__..........~~_._..~__ ___~____._..........___~_.~..5........ ..__~___i____.__ / CUNNINGHAM BLDG RENT RO ~ PROD CTION - 2ND F nnR ' . 8/9/96:' BATH 'DESCRIPTION ° COMMENTS --r-_________________~._w__._..__, UNIT #.,.•_________________c___._._._.__°._._.._.__.v_..___..___°.____..____.._.._______- .._~~Li RENT PRIDG; TOTAL ~ACT~AL 200 'Bath HOUSe Old Office-NC&P :Extehor View ~ 275 275. VAC 201 ;Bath House f~1BP :Extenor View 1 250': 250' 2501 111 _ 202 :Bath House :09 ;Street Front View ? 1 250, 250; 250 _203....:-Bath House :p~ ..................................:Street Front View.........1.....;......250;..........., ........250j.......250 204 :Bath House ;rte ;Street Front View .___.__...._...._.__._.rz_.;____s~gi....._.___.___...__._250.;._...__250 205 :Bath House Street Front View_ 1 _ _ _ 250: 206 _ ;Bath House :Cnr-Front/X Lar e/NC&P ?End Unit w/2 views HS~ f 305: ~ 250; 250 ..9 25i 330 330 207 :Bath House iN~P ;Court Yd. View 1 250:' 25i 2751 275 _ c~08 , 6`atlt tfaii5r? T~KBF+ Ong Fndge 2 i 290; 2 5 i 31 5 31 S 209 :Bath House ;Og ;Court Yd View 1 250; 25: 275: 275 210 ;Shred iNrBC Exterior View 1 250 25 275 275 _ ~ 71 f~irared ;Exterior View 290, 290. VAC 212 :Shared ~ iExtenorView 2 315; 25: 340'. 340 21 3 Shred O8 iExterior View 1 250 250 250 214 :Pnvate ;BackComer2Views;: 340; 25 365:VAC 215 ;Private :NAP :Marliss-H. S. Staff HS 2951 25; 320' 320 216 ,Private ! 1 i 325; i 325E 325 217 :Private ;NSA i ? HS 340? 25; 365! 365 21 8 _ Shared ~ ~ HS 305;: 25: 330: 330 21 9 Pnvate NC&P/Single Tenant iExtenor View HS 340 25: 365 365 220 :Shred iSmall/NC&P iCourtYd.Vieov HS 295; Z5: 320: 320 221 :Private ;Extra Large/NC&P ;Exterior View ? 1 ~ 325% 25: 350' 350 222 ;Shared :Og :Court Yd View i 1 275. 25; 300' 300 223 .Shred End/Comer/Ori Court Yd/Great View] 2 350; 25i 375; 375 224 :Private ;End Comer/Orig :Gmat~liews 1 350; 350 350 TOTAL SECOND FLOOR 19 i 7,265' 375. 7,640 6,71 O PERCENT SECOND FLOOR gg% TOTAL BUILDING i 38 114,550;, 825, 15,375 14,145 PERCENT TOTAL BUILDING g2% PROFIT & LOSS REPORT 111196 Through 12131196 The Cunningham Building- All Accounts SCl9/97 InclF,xp~nse Description 111196. - l 2131196 iN('OMFIF.XPF.NSF. INCOME Fees/ Vending Commissions 1,362.67 Residential Rentals 123,106.80 Commercial Rentals 16,169.17 TOTAL. IN( OMF. 140,638.64 EXPENSES: Advertising 458.06 Bank Service Charge 54.54 Clearing Account 00.00 Commissions 5,788.67 Janitorial 27.07 Keys 44.62 Office Supplies 32.20 Repairs and Maintenance 5,106.83 Resident Mgr. Services 3,600.00 Small Furnishings 1,866.86 Telephone 83.39 Trash Disposal 870.00 Utilities: Electricity 14,711.57 Gas 3,862.15 Sewer 3,627.80 Water 2.fi32.4~ Total Utilities 24,834.47 Real Property Taxes 2,148.00 Insurance 4,665.02 TOTAL. F.XPF.NSF.S 49,579.73 TOTAi. IN('OMEI F.XPF.NSF. 91 5,11 R"91