Investors interested in Waikiki mid-rises
Investors are showing a growing interest in mid-rise buildings in and around Waikiki.
The Essex House, a 10-story residential building on the corner of Nahua Street and Ala Wai Boulevard, is generating plenty of interest at the list price of $8.5 million. Broker Edward Brinkman of Doug Davis Realty Inc. says he's had five written offers, albeit none above the list price, since the property went on the market on Monday. Bidding runs through July 5. Four of the five bidders were interested in converting the building into condominiums, Brinkman said.
Built in 1969, Essex House brings in a current gross income of $531,240, according to the listing. Past sales transactions for the property were recorded at $5.3 million in 1994 and $3.2 million in 2000.
Most of its 34 units are two-bedroom with parking, lanais, washers and dryers.
Meanwhile, across the Ala Wai from that property, another 17-story apartment building also has brought forth a bidding war among investors, according to attorney Thomas Hayes, who acted as receiver for property owner McCully Associates.
The Iolani Regent at 2522 Date St., built in 1991, has about 80 one- and two-bedroom units.
Hayes said he received a bid for $18 million on May 23, but at a confirmation hearing last week received another one from locally based White Sands Development LLC for $22.3 million.
The sale is expected to close on Aug. 1.
Hayes said he had 16 initial bids, with five in the final round. McCully Associates is selling off assets, he said, due to family disputes.