KAPOLEI LAND SALE FEE SIMPLE OFFERING MEMORANDUM KAPOLEI, HAWAII 9.86 ACRES OF COMMERICAL LAND MIXED USE/RETAIL/OFFICE-FLEX Brooks R. Borror (PB) Nicholas J. Paulic (S) 808.529.0001 808.343.1550 Brooks@cci-hawaii.com Nick@cci-hawaii.com
CONFIDENTIAL OFFERING MEMORANDUM Confidential Offering Memorandum This Offering Memorandum was prepared by Commercial Consultants, Inc. ( Broker ) solely for the use of the prospective purchase of approximately 9.86 acres of land, located 498 Kamokila Boulevard, Kapolei, Hawaii 96707 ( Property ). Neither the Broker, nor the Owner of the Property, Kapolei Investment Group, LLC ( Owner ) makes any representation or warranty, expressed or implied, as to the completeness or accuracy of the material contained in the Offering Memorandum. Prospective purchasers of the Property are advised that changes may have occurred in the physical or financial condition of the Property since the time this Offering Memorandum or the financial statements therein were made by Broker and not by Owner, and are based upon assumptions or events beyond the control of Broker or Owner and therefore may be subject to variation. Other than current and historical revenue and operating expenses figures for the Property, Owner has not, and will not, provide Broker or any prospective purchaser with any projections regarding the Property. Prospective purchasers of the Property are advised and encouraged to conduct their own comprehensive review and analysis of the Property. The Offering Memorandum is a solicitation of interest only, and is not an offer to sell the Property. The Owner and Broker expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers to purchase the Property and expressly reserve the right, at their sole discretion, to terminate discussions with any entity at any time, with or without notice. The Owner shall have no legal commitment or obligations to any entity reviewing the Offering Memorandum or making an offer to purchase the Property, unless and until such offer to purchase the Property is approved by Owner pursuant its Governing authorities and the signature of the Owner or Owner s representative is affixed to a Real Estate Purchase Agreement prepared by Owner. This Offering Memorandum is confidential. By accepting the Offering Memorandum, you agree (i) that you will hold and treat the Offering Memorandum and its contents in the strictest confidence, (ii) that you will not photocopy or duplicate any part of the Offering Memorandum, (iii) that you will not disclose the Offering Memorandum or any of its contents to any other entity without the prior authorization of the Owner, and (iv) that you will not use the Offering Memorandum in any fashion or manner detrimental to the Owner or Broker. Commercial Consultants, Inc. obtained the information in this Offering Memorandum from sources we believe to be reliable. However, we have not verified its accuracy and make no guarantee, warranty or representation about it. It is submitted subject to the possibility of errors, omissions, change of price, rental or other conditions, prior sale, lease or financing, or withdrawn without notice. We include projections, opinions, assumptions, or estimates for example only, and they may not represent current or future performance of the Property. You and your tax and legal advisors should conduct your own investigation of the physical condition of the Property and the financial performance of its future Ownerships.
TABLE OF CONTENTS Table of C SECTION ONE Investment Summary SECTION TWO Oahu s Second City Kapolei Master Planned Community Population & Job Growth Residential & Commercial Developments Kapolei s Next Phase Summary Conclusions SECTION THREE ADDENDA Comparable Sales B-2 Permitted Uses Site Plan Concepts
INVESTMENT SUMMARY Tenure: FEE SIMPLE Location: 498 Kamokila Boulevard, Kapolei, Hawaii APN/TMK: 1-9-1-118-008 (001& 002) Price: Negotiable please refer to Comparable Sales in Addenda. Parcel Size: 9.86 Acres (429,501 square feet) Zoning: B-2 (Commercial Zoned) Height Limit: 60 Feet
INVESTMENT SUMMARY (CONTINUED) Property Location: The Property is located in the heart of the block at which the national big box retailers have chosen to locate to serve the West Oahu market. These big box retail tenants surrounding the Property include Home Depot, K-Mart, COSTCO, Target, Sports Authority, TJ Maxx and Ross Dress For Less. Kamokila Boulevard is the main retail corridor running east to west through the heart of downtown Kapolei. This is one of few remaining large retail parcel offering H-1 visibility, available H-1 Freeway signage and is surrounded by multiple retail developments. Excellent Access, Visibility and Signage The Property is well situated from an access, visibility and signage perspective. There are three major roads that offer access to the property: Kamokila Boulevard, Kapolei Parkway and H-1 Freeway. Ideally located, the Property is directly south of the H-1 Freeway. This location benefits from east/west traffic counts of over 80,000 vehicles passing the Property each day. Conveniently located just off the Kalaeloa Boulevard Exit (from both Eastbound and Westbound traffic), the Property offers direct ingress/egress from both Kamokila Boulevard and Kapolei Parkway. Fee Simple Ownership: The sale of this property offers a rare opportunity to own fee simple commercial land in Hawaii. Many of the assets that are taken to market for sale, are ground lease properties which are not attractive to many investors. Fee simple ownership will allow the potential investor/developer to yield higher returns, have more flexibility in their development and will allow any potential owner/user to contain their occupancy costs and own their improvements in perpetuity.
Master Planned Community KAPOLEI GROWTH OAHU S SECOND CITY Kapolei was designated to be the urban core of Oahu s Second City in 1977 which included the development of the Kapolei Area Long Term Master Plan. As such, the community was master-planned and has seen the construction of: Major road and infrastructure projects. Numerous residential projects (over 34,000 housing units exist in Kapolei today). 2014 Kapolei population is approaching approximately 107,000. New West Oahu Judiciary Center. Multiple colleges including the University of Hawaii, West Oahu Campus, Tokai University (under construction) and the University of Phoenix. Kalaeloa Airport (which now has commercial flights). A deep draft harbor at Barbers Point (capable of receiving freighters and cruise ships). Hawaii s largest industrial park. Wet n Wild Water Park (the only water park in the entire State of Hawaii). Several major Resorts at Ko olina including Aulani Disney Resort & Spa and the newly planned Four Seasons Resort. Numerous golf courses at Ko olina, Kapolei and Ewa Beach. Kroc Community Center.
KAPOLEI GROWTH LONG TERM MASTER PLAN Below is the Kapolei Area Long Term Master Plan (below with Subject Site indicated).
KAPOLEI POPULATION & JOB GROWTH Since 1990, Kapolei s population has grown nearly two and a half times to nearly 107,000 today, with projected growth of nearly 64 percent over the next two decades. This makes Kapolei the fastest growing region in the State of Hawaii. Kapolei has strong demographics in terms of median age, education, median income and homeownership rate. With this rapid growth comes additional development and job creation. (Source: Kapolei Property Development, LLC / Hawaii Business Magazine)
KAPOLEI MASTER PLANNED RESIDENTIAL COMMUNITIES Residential Development: The property is surrounded by several master planned communities that will account for a future growth of some 22,000 additional homes. Within three (3) miles of the Property the population is expected to grow at a rate that is three times as fast as the national average growth rate over the next five years. In the coming decade, it is projected that the sum of new residential developments will be approximately 80,000 homes, which translates to an annual growth rate of over 11%. Hokalei is a master planned community at which currently 600 residents live. In escrow at the development there are over 100 additional homes. The resort lifestyle development has an 18 hole golf course (the Hokalei Country Club). The next phase is named Kipuka and will have an additional 100 homes. Mehana at Kapolei is a four phase master planned community of which three are completed. The fourth phase is in progress. The development will occupy 130 acres in all, with over 1000 homes. Ho opili is a 11,750 home master planned community which will be the basis for an additional economic core for West Oahu. The third transit station for the new rail is planned at the development. Kapolei West is a master planned 516 acre development contiguous to the Ko Olina Golf Course. The project will total 2,500 homes and is currently commencing construction. Ocean Pointe was recently completed (as a part of the Hoakalei Master Plan totaling 2,500 homes). Makaiwa Hills is a master planned development near the Ko olina Resort and at build out will contain over 4,000 homes.
KAPOLEI RESIDENTIAL & COMMERCIAL DEVELOPMENTS Below is an aerial showing the ongoing commercial and residential development projects in West Oahu. (Source: Kapolei Property Development, LLC)
KAPOLEI S NEXT PHASE Below is an aerial showing the planned future developments and re-developments in West Oahu. (Source: Kapolei Property Development, LLC)
SUMMARY CONCLUSIONS This offering represents a rare opportunity to acquire 9.86 acres of fee-simple, freeway fronting commercial land in the fastest growing region in the State of Hawaii. The Property is the last large parcel in the established retail hub of Kapolei and is at the main freeway entrance and exit which connects to the master-planned communities of Kapolei, Makakilo and Ewa Beach (via the now completed six-lane Kapolei Parkway). The Property is ideally suited for big box retail uses, medical, hospital and/or high profile corporate offices.
ADDENDA COMPARABLE SALES TMK Grantee Sale Date Acres(s) Zone Price Sold Comments 91148023 W&W Developers - CSWo 10/24/2013 1.035 BMX-3 $38.82 Part of Leihano Village 9116185 Kaiser Foundation 2/17/2012 5.29 BMX-3 $50.57 Hard corner across from Kapolei Shopping Center 911488 Kapolei Shops, LLC 4/1/2009 3.95 BMX-3 $44.88 Foodland Farms CPR 91088006 Kamokila Land Company LLC 910880180 Entertainment America, Inc. 9/23/2014 0.7 Comm. $45.00 Corner of Uluohia St. & Kamokila Blvd. 9/23/2014 0.7 Comm. $87.00 Corner of Uluohia St. & Haumea St.
Amusement & recreational facilities Convenience stores Schools Drive-thru facilities Eating establishments Home improvement centers Laboratories Personal services Photo processing and studios Retail establishments Food manufacturing Motion picture and television studios Plants for printed materials Repair establishments Art galleries and museums Day care facilities Hospitals Public uses and structures Theaters Car washes Commercial parking garages ADDENDA B-2 ZONE PERMITTED USES
ADDENDA CONCEPTUAL SITE PLANS (SCHEME A)
ADDENDA CONCEPTUAL SITE PLANS (SCHEME B)
ADDENDA CONCEPTUAL SITE PLANS (SCHEME C)
ADDENDA CONCEPTUAL SITE PLANS (SCHEME D)