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OFFERING MEMORANDUM For Sale Reduced $500,000 for

quick 30 to 45 day close 410 Atkinson Drive, Apt. 1A, Honolulu, HI 96814

THREE MILLION FIVE HUNDRED THOUSAND dollars $3,500,000

This fee simple, 11,547sq. ft. building/commercial condo, in an UNBEATABLE

LOCATION opposite the Convention Center, and at one corner of Ala Moana

Mall, the highest grossing Mall in the Nation. is part of the Ala Moana Hotel with

1176 rooms to draw from, and featuring a 40 foot high ceiling, (it was the former

Hawaiian Hut entertainment venue and Polynesian Dinner Show for 35+ years)

The BMX-3 Zoning allows most business uses and even multi-family dwellings

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Contents:

THE OFFERING

Investment Summary

Investment Highlights

Locator Map

ASSET OVERVIEW

Property Description

Floor Plan

Site Plan

Condo Map showing Apt.1-A

THE MARKET

Economic Drivers:

Ala Moana/Kapiolani Corridor Overview

West Waikiki

Kakaako

FINANCIAL ANALYSIS

Comparable Sale

For Investors

walkway - lobby to the space

Driveway entrance Hotel with subject to the right

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INVESTMENT SUMMARY

LOCATION, LOCATION, LOCATION

This virtually freestanding commercial condo is part of the 1176 room Ala Moana Hotel

condominium. The Hotel, located at one corner of the Ala Moana Shopping Mall is connected

by skybridge to the Mall which is, Hawaii's premier shopping, entertainment, and dining

destination. Atkinson Dr. is high traffic with over 24,700 cars per day.

Ala Moana Shopping Mall is the largest outdoor shopping mall in the world and highest grossing

mall in the Nation, with over 42 million visitors a year.

Two of Waikiki’s entrances are only a block away. Waikiki, with 5 million visitors per annum

is serviced by a shuttle trolley between the Mall and Waikiki that goes past the subject property

7 days a week every 10 minutes.

Currently owned by Lubavitch Foundation of Hawaii and used as a synagogue

Sanctuary /offices

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Most business uses are allowed in this excellent BMX-3 zoning. They will benefit tremendously

from the surrounding condo towers. West Waikiki is the most densely populated region in

Honolulu. Similarly, they will benefit from existing and new development in the Ala Moana/

Kapiolani Corridor and the expansive development of 29 new towers in Kakaako, some 4,805

residences

The proposed Ala Moana Rail Station, that fuels the TOD development around it,

and the Kapiolani Corridor are experiencing an huge hotel and condo development boom

that will add more people and value to the region with 450 foot towers and includes the

Mandarin Hotel, under construction right opposite the subject property.

The property’s high visibility corner location allows it to take advantage of both the visitor and

local markets. Down the road is the Waikiki Yacht Club and Ala Wai Marina and Ala Moana

Beach Park and Magic Island, all major attractions, as well as the expansive 200 acre+ Ala

Moana Beach Park, great for picnics, and one of the most visited parks in Hawaii !

The subject from the Convention Center

INVESTMENT HIGHLIGHTS

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Rare Fee Simple Opportunity

The opportunity to acquire the fee simple interest in a commercial condo with so many potential uses,

though proven as and in demand as an entertainment venue, particularly in a market where leasehold

interest sales transactions are commonplace and fee simple represents a very compelling investment

prospect.

Reception area

below reception area

Irreplaceable Location

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410 Atkinson Apt.1-A represents a truly rare opportunity to acquire a quality entertainment or other

asset in an unbeatable location,with booming development projects all around. It simply cannot be

replaced or built speculatively at a cost that the leasing market can support.

entrance

Supply Constraint

Honolulu Metro is an extremely supply-constrained market. New office, retail and industrial properties

are almost impossible to find, and there is currently no new supply due to high construction costs and a

lack of available developable sites. However, the Transit Oriented Development within ½ mile of the

proposed Ala Moana Station, planned to be two blocks from the subject property, is driving a boom in

the area surrounding the property. See Exhibits 1 and 2. This boom has led to 450 foot condo and hotel

towers being built and more approved and under construction, despite the high acquisition (over$1000

a sq.ft. land only) and development costs that are forcing the market into higher price echelons. The

subject property benefits from this dramatic increase in values.

Though proven as an entertainment venue with liquor license, with capacity seating for 399 persons and

with a large kitchen, previously licensed for kosher food preparation, the zoning allows for multi-family

dwellings and the space could be reconfigured potentially to create luxury apartments to take advantage

of its unbeatable location and the demand for housing in the area.

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Former showroom with high ceiling and former stage

As a dinner/ showroom and/or entertainment venue, featuring its 40 foot high ceiling, the venue could

fill the demand Hawaii has for adequate venues for touring musicians/artists en route to and from Asia

Pacific. Also a themed attraction could fill a void for Hawaii in the dinner theater category such as the

Dinner Detective franchise www.dinnerdetective.com or a Las Vegas styled show.

OTHER HIGHLIGHTS

PARKING:

1. The property has unique access from Ala Moana Shopping Mall parking

via a skybridge on the second level connecting the Hotel and the Mall (with a vested legal easement). For 50 years this skybridge has allowed people such as conference goers to move

freely between their parking at the Mall and the Hotel and hotel guests to enjoy the Mall. The

subject property is a short distance down the hotel escalator and out the lobby doors.

2. The showroom’s ticket sales pricing in the past has included parking in the hotel parking

garage ( some 300 stalls approx. available). An elevator takes the guests up to the lobby and

then out ot the venue. This arrangement could be potentially arranged with the Hotel operator.

3. The condominium has 80 approx. parking stalls in both Kona St and Mahukona St. (dedicated

for use of hotel guests and users)

4. There may also be an opportunity for valet parking with 20 stalls around the porte cochere.

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LOCATOR MAP

Unbeatable Location at Ala Moana Hotel and one corner of Ala Moana Shopping Mall,

opposite Convention Center one block proximity to Waikiki

ASSET OVERVIEW

Property Description

Fee Simple 11,547 square feet building. Ideal for restaurant/ caterer, dinner/showroom,

nightclub, retail, office

Location, location, location. " High profile attractive building, great exposure, high visibility

corner location to take advantage of both the visitor and local markets, a block from Waikiki

Tax Map Key: (1) 2-3-38-2-1164

Zoning: BMX-3 – Business mixed Use (a wide range of possible commercial uses)

Property taxes: $ 300 per annum currently as non-profit.

Year Built: 1970, converted to condominiums in 2005

Use: Commercial use for this condo (BMX-3 zoning). The 36 storey Ala Moana Hotel use

containing 1,176 hotel apts. is a grand fathered lawful non-conforming use.

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Permitted Uses: Include: multi-family, medical and research labs, indoor recreation and

amusement, motion picture and TV production studios, food manufacturing and processing,

financial institutions, retail establishments including restaurants, convenience stores, vet

establishments, catering, dance or music schools, medical clinics, business services including

computer, auction, advertising , marketing , accounting, security, human resources, payroll,

special needs of elderly (conditional), multi-family dwellings

AOAO fees: AOAO maintenance fees include other heads of expense such as all utilities,

electricity, sewer, water, rubbish removal! (40% of Hotel’s budgeted expense estimate) And

include reserves set aside for future repair and replacement as required under Hawaii

condominium law. If each head of expense were allocated separately, the estimate would look

something like this:

Utilities: -------- $8,000 normally payable separately

Reserves: ------ $4,200 to cover repair and replacement needs over 30 years

Maintenance:------- $8,300 what would be usual maintenance (equivalent to about

$0.72 per sq. ft. per month)

Maintenance and other expense covered in AOAO fee:------ total $20,500 per month.

In context, the $0.72 per sq. ft. per month estimate compares favorably with other leased

commercial properties throughout Oahu. In Waikiki common area maintenance (CAM) charges

and additional marketing and other charges can be nearly quadruple that, in the order of $2.80

per sq. ft. per month with electricity payable additionally.

Large kitchen (approx. 4,000 sq. ft.) has more recently been used as a kosher food

preparation facility, though not currently licensed as such.

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Floor plan

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Site Plan

Showing location of subject condo in relation to Ala Moana Hotel

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Condo Map showing Apt.1-A in relation to hotel lobby 1-G,

Plantation Café (1-B) and former Rumours (1-

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THE MARKET

Economic Drivers:

The estimated economic impact is in the $billions, as well as nearby Kakaako which is expected

to have some 29 or so new high rise towers with 5 already existing and sold out at multi-

million dollar prices.

Economic impact of nearby developments

Besides the Ala Moana Rail Station proposed at Keeaumoku St with all its attendant TOD

development, the following developments will bring great benefit to the Ala Moana area and to

the Hawaiian Hut space, with just the first phase of one of them alone representing more

than $1.25 billion in economic impact and thousands of direct and indirect jobs for

Oahu

http://www.bizjournals.com/pacific/news/2013/08/21/hawaii-agency-oks-two-kakaako-

condo.html?page=all

See also re One Ala Moana condo development

http://www.cpexecutive.com/cities/honolulu/howard-hughes-expects-66m-profit-from-one-ala-

moana-condominium/ sales at $1170/ sf. build out cost $900 /sf

This major development, right across the Hawaiian Hut’s Kona St corner, will have

bring significant benefit http://www.bizjournals.com/pacific/news/2015/02/25/hotel-could-be-

part-of-mixed-use-project-across.html?page=all

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Existing

Ala Moana/Kapiolani Corridor Development Boom surrounding the subject property

The “Rail condo boom” can be seen in the map below. The Ala Moana/ Kapiolani Corridor

boom is fueled by the 450 foot height limit and the allowable FAR doubling as a result of the

Transit Oriented Development (TOD) ordinance that allows such development within ½ mile

of the proposed Ala Moana Rail Station and the proposed rail stations in the Kakaako area

Drawing from such development, the subject property is by far the best priced best located fee

simple property in Honolulu at only $346/ sf. ($4 Million) for an 11,547 sf fee simple interior

area. All around the subject properties are being developed and the acquisition cost (land only)

exceeds $600 per sq. ft. before development. The surrounding increase in values has affected

the value of the subject property.

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Mandarin Hotel immediately across Kona St from this site is under sonstruction!

Proposed 450 ft residential tower/ hotel development!

A developer recently bought the property immediately opposite subject property in Kona St

for $36 Million ( land value only--about $632 per sq.ft.)

The $510 million Sky Ala Moana condo-hotel project on Kapiolani Boulevard was approved in

Nov. 2018and is expected to deliver 300 condominium hotel units and 474 condominium units

priced between $650,000 to $850,000, ( 84 will be affordably priced.) The development also is

expected to create up to 810 construction jobs and, upon opening, 540 permanent full-time

jobs, first units to be occupied by 2023.

Other approved developments are the proposed 450 foot residential tower by SamKoo at

1657 Kapiolani.

West Waikiki ( around the corner)

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There is also currently a robust existing local demographic in this West Waikiki area that is one

of the most dense areas of Oahu and within walking distance of the subject property. The

existing condos include Yacht Harbor Towers (459 units), Atkinson Towers (111) units, Sunset

Towers (81 units), Atkinson Plaza (127 units), One Ala Moana (206 units), Park Lane Ala Moana

(215 units), Summer Palace (146 units).

Local target market - 2015 Population demographics for 1, 3 and 5 mile radius are: 70,002,

223,811 and 313,265 with expected 7.2 % growth up to 2020!

KAKAAKO RISING

The Ward Village- within about a mile from the subject property- has planned a total of 22

towers and Kamehameha Schools has approval for 7 towers

Eleven buildings are completed or under construction in Kakaako, a total of 4,085 units

Aalii Developer: The Howard Hughes Corp. Units: 751 Aeo Developer: The Howard Hughes Corp. Units: 466 units Anaha Developer: The Howard Hughes Corp. Units: 318 units The Collection Developer: Alexander & Baldwin Units: 467 units Gateway Towers Developer: The Howard Hughes Corp. Units: 236 units Ililani Developer: Hui O Ka La LLC Units: 430 units Ke Kilohana Developer: The Howard Hughes Corp. Units: 424 units 400 Keawe Developer: Castle & Cooke Hawaii Units: 95 units 400 Keawe Developer: Kamehameha Schools Units: 88 units Keauhou Place Developer: Stanford Carr Development Units: 423 units Keauhou Lane Developer: Gerding Edlen /behalf of Kamehameha Schools Units: 209 Nohona Hale Developer: Bronx Pro Group Units: 105 units Ola ka iLima Artspace lofts Developer: Artspace Projects Units: 84 units 801 South St. Building B Developer: Downtown Capital Units: 410 units Waiea Developer: The Howard Hughes Corp. Units: 177 units The Block 803 Waimanu Developer: MJF Development Units: 153 units

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FINANCIAL ANALYSIS

Comparable Sale:

The most recent comparable sale of a commercial condo was L9 at Nauru Tower on May 10,

2018 at a price of $4.6 Million for a 10,740 sq.ft. condo, being $428 per sq. ft. That compares

to the subject property at $303/sq. ft.

For investors: If this property were rented out, compare rents at the Mall or in Waikiki (up to

$30 per sq. ft. NNN per month with additional large CAM expenses often in excess of $2 per

sq. ft. per month). The subject property enjoys all the benefits of both the Mall and Waikiki,

being at one corner of the Mall and a block from Waikiki. The estimated rental value of this

property is $3 per sq. ft. NNN or potential income of $415,692 per annum, and assuming

tenant improvement allowance (TIA) of $30 /sq.ft. (about $350,000) the potential return to an

investor at asking price plus TIA is10.8% p.a for a fee simple property in such a premium

location! And with the anticipated rental rates that must be generated to make the new towers

around this site profitable, there is even more potential growth.

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Contact: Principal Broker: William Crowe (B) RB-15415

Crowe Commercial Real Estate LLC- RB-22690

Phone: 808 396-8410,

Cell: 707-484-0640

68-155 Au St., Ste 105, Waialua HI 96791

email: williamcrowe1@gmail.com

Disclaimer: Buyer should do its own analysis of the property. The information contained herein has been obtained

from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no

guarantee, warranty, or representation about it nor as to the condition of the property. Buyer to confirm and

consult with their tax, financial, legal advisors, architect, engineers, environmental consultants, zoning consultants,

and other professionals and conduct its independent due diligence studies. Any projections, opinions, assumptions

or estimate s used are for example only and do not represent the current or future performance of the property.