Commercial Investing Opportunity in Niu Valley
If you’ve ever dreamed of owning fee simple commercial property in East Oahu, Niu Valley Center could be the vehicle you’ve been looking for to help make that happen.
Longtime local developer Peter Savio bought the 211,447-square-foot center with 224 parking stalls in 2015 from King’s Cathedral and Chapels, with the express purpose of selling its individual spaces to the existing tenants or outside commercial investors.
At this point, just three of those 11 properties are left. Savio said only a few of the spaces already sold were bought by their tenants.
“I had really hoped that most of the tenants would buy,” Savio said this past week, “but most of them had been there for 30 years, so they were older. For them, it didn’t make sense unless they had a son or a daughter that was going to take over. But, we still ended up with local people — doctors, dentists, business people — who bought the spaces, so I think we accomplished what we wanted to accomplish.”
Savio said one of the remaining spaces is occupied by the Chinese restaurant Lung Fung. It has three years left on its lease and is being offered at $2,616,000, which covers 2,920 square feet of business space and 6,548 square feet of common area, or about $276 per square foot.
The second, occupied by Le Bistro restaurant, has five years on its lease with a five-year option. It is priced at $2,406,000, or about $254 per square foot for its 2,484 square feet of business space and 6,996 square feet of common area.
The third remaining property is the freestanding Jack in the Box restaurant, with a drive-thru window. The national brand restaurant has about 16 years left on its lease, plus a five-year option. It’s priced at $4,935,000, or about $460 per square foot, including the 3,397-square-foot recently renovated building and 7,316 square feet of drive-thru area.
Savio, who has converted thousands of apartments into fee simple condominiums since the 1980s, said he’s always loved converting solely owned buildings into affordable condominiums “because property is so expensive here in Hawaii.”
And what’s been good for homeowners also applies to businesses.
“Leasehold is great,” Savio said, “but if you can afford to buy, your business is good forever. If you lock in your monthly payment, you don’t have to worry about your landlord raising the rents or forcing you out, so it helps bring stability to that local market.
“Also, at the point you retire, you can sell it and move on. Therefore, you get the profit from the business and the value of the appreciation.”
For more information about Niu Valley Center, call Savio Realty Ltd. at 445-9025.