WAIKIKI RARE FEE SIMPLE OPPORTUNITY OFFERED AT $12,000,000

CBRE(世邦魏理仕)诚意推介一幅近3万平方尺的商业住宅混 合用地。该地皮位于世界著名旅游胜地夏威夷威基基的中 心。离美丽的威基基海滩只需5分钟步行。正对面是超5星级 酒店，丽思卡尔顿（The Ritz-Carlton）。该酒店于2016年 建成，现正于扩建中。这是近20年来在威基基首次有商业住 宅用地出售。机会实属罕有，勿错失良机。

KUHIO AVENUE2112 EXCLUSIVE OFFERING MEMORANDUM 2112 KUHIO AVENUE | 1 2112 KUHIO AVENUE |

KUHIO2112 AVENUE 2112 KUHIO AVENUE | 2 Affiliated Business Disclosure Confidentiality Agreement Disclaimer

CBRE, Inc. operates within a global This is a confidential Memorandum Neither the Owner or CBRE, Inc, nor any of © 2017 CBRE, Inc. The information family of companies with many intended solely for your limited use and their respective directors, officers, Affiliates contained in this document has been subsidiaries and/or related entities (each benefit in determining whether you desire or representatives make any representation obtained from sources believed reliable. an “Affiliate”) engaging in a broad range to express further interest in the acquisition or warranty, expressed or implied, as While CBRE, Inc. does not doubt its of commercial real estate businesses of the Property. to the accuracy or completeness of this accuracy, CBRE, Inc. has not verified including, but not limited to, brokerage Memorandum or any of its contents, and it and makes no guarantee, warranty services, property and facilities This Memorandum contains selected no legal commitment or obligation shall or representation about it. It is your management, valuation, investment information pertaining to the Property and arise by reason of your receipt of this responsibility to independently confirm fund management and development. At does not purport to be a representation of Memorandum or use of its contents; and its accuracy and completeness. Any times different Affiliates may represent the state of affairs of the Property or the you are to rely solely on your investigations projections, opinions, assumptions or various clients with competing interests owner of the Property (the “Owner”), or to and inspections of the Property in estimates used are for example only and in the same transaction. For example, be all-inclusive. No financial projections evaluating a possible purchase of the do not represent the current or future this Memorandum may be received by and information are provided. Additional real property. performance of the property. The value our Affiliates, including CBRE Investors, information and an opportunity to inspect of this transaction to you depends on Inc. or Trammell Crow Company. the Property will be made available to The Owner expressly reserved the right, tax and other factors which should be Those, or other, Affiliates may express interested and qualified prospective at its sole discretion, to reject any or evaluated by your tax, financial and an interest in the property described in purchasers. all expressions of interest or offers to legal advisors. You and your advisors this Memorandum (the “Property”) may purchase the Property, and/or to terminate should conduct a careful, independent submit an offer to purchase the Property Interested parties are expected to review discussions with any entity at any time with investigation of the property to determine and may be the successful bidder for the all information and other documents of or without notice which may arise as a to your satisfaction the suitability of the Property. In all instances, however, CBRE, whatever nature independently and not rely result of review of this Memorandum. The property for your needs. Inc. will act in the best interest of the on the contents of this Memorandum in Owner shall have no legal commitment client(s) it represents in the transaction any manner. or obligation to any entity reviewing this described in this Memorandum and Memorandum or making an offer to will not act in concert with or otherwise purchase the Property unless and until conduct its business in a way that written agreement(s) for the purchase of benefits any Affiliate to the detriment of the Property have been fully executed, any other offeror or prospective offeror, delivered and approved by the Owner and but rather will conduct its business in a any conditions to the Owner’s obligations manner consistent with the law and any therein have been satisfied or waived. fiduciary duties owed to the client(s) it represents in the transaction described in By receipt of this Memorandum, you agree this Memorandum. that this Memorandum and its contents are of a confidential nature, that you will hold and treat it in the strictest confidence and that you will not disclose this Memorandum or any of its contents to any other entity without the prior written authorization of the Owner or CBRE, Inc. You also agree that you will not use this Memorandum or any of its contents in any manner detrimental to the interest of the Owner or CBRE, Inc.

If after reviewing this Memorandum, you have no further interest in purchasing the Property, kindly return this Memorandum to CBRE, Inc.

2112 KUHIO AVENUE | 3 EXECUTIVE SUMMARY

CBRE is pleased to present the opportunity to purchase an assemblage of six parcels of fee simple developable land in the heart of , , Hawaii. The property, located across the street from The Ritz-Carlton, has both Kuhio Avenue and Kalaimoku Street frontage providing an attractive development opportunity.

INVESTMENT HIGHLIGHTS • Rarely available 30,000 sq. ft. fee simple land parcel with potential for residential and commercial development • Highly attractive location across from the newly opened Ritz-Carlton • Announced development of 230-room hotel on neighboring property • Offer at $12,000,000

PROPERTY INFORMATION

Address: 2112 Kuhio Avenue, Honolulu, HI 96815 411, 417, 423 and 427 Kalaimoku Street, Honolulu, HI 96815

Tax Map Keys: (1) 2-6-017:008, 010, 011, 081, 082, 089

Lot Size: Parcel 8: 10,000 sq. ft. Parcels 10, 11, 81, 82, 89: 19,464 sq. ft. Total: 29,464 sq. ft.

Zoning: Parcel 8: AMX (Apartment Mixed-Use) Parcels 10, 11, 81, 82, 89: APT (Apartment)

Annual RPT: Parcel 8: $12,070.80 Parcel 10: $ 4,993.80 Parcel 11: $ 5,925.50 Parcel 81: $ 4,898.25 Parcel 82: $ 4,744.60 Parcel 89: $ 300.00

Height Limit: 300 ft.

Flood Zone: AO

District: Waikiki Special Design District

• Inspection of existing structures will only be permitted with written authorization by the Seller following receipt of an acceptable offer.

• Existing tenants are not to be contacted or disturbed.

2112 KUHIO AVENUE | 4 OPPORTUNITIES

BENEFIT FROM CURRENT IN-PLACE INCOME

Several of the parcels have income producing structures which can offset holding costs. Financial information will be provided upon acceptance of an Offer as part of the due diligence material.

411 Kalaimoku Street 417 Kalaimoku Street 423 Kalaimoku Street 427 Kalaimoku Street

TMK: 2-6-17:81, 89 TMK: 2-6-17:10 TMK: 2-6-17:82 TMK: 2-6-17:11

Land Area: 5,000 SF Land Area: 5,000 SF Land Area: 5,000 SF Land Area: 4,464 SF

Two-story, wood walk-up Two-story, single-family wood One-story, single-family wood Three-story masonry walk-up apartment building with four dwelling built in 1952 and dwelling built in 1945 and in- apartment building constructed apartment units. Building was includes approximately 1,574 cludes approximately 792 SF of in 1965. The building includes completed in 1945 and includes SF of living area. living area. 12, one-bedroom apartments 2,600 SF of building area. with approximately 450 of living area each, and ground floor parking level striped for 8 stalls.

2112 KUHIO AVENUE | 5 The total living area is approximately 10,946 SF as follows:

Approximate Living Area (SF)

Unit Type Units Per Unit Total

Four-story walk-up

Studio 3 324 972 One bedroom 6 556 3,336 Two bedroom 6 580 3,480

Total 15 7,788

Front cottage

Two bedroom 1 992 992 Three bedroom 1 1,016 1,016

2106-2112 Kuhio Avenue and Waikiki Alleyway Total 2 2,008

Back cottage TMK: 2-6-17:08 Total 1 1,150 1,150 Land Area: 10,000 SF

2106 Kuhio Avenue includes a four-story masonry and wood walk-up Total 18 10,946 apartment building constructed in 1960. The building includes 15 studio, one- and two-bedroom apartments. The 1,000 SF driveway between the apartment buildings is referred to 2112 Kuhio Avenue is improved with 2, two-story masonry and wood by the Company as the “Waikiki Alleyway.” cottages built in 1939.

2112 KUHIO AVENUE | 6 RENOVATE AND PARTIAL DEVELOP

The six existing separate parcels provide a unique opportunity and an alternative to consolidation of the six parcels to full redevelopment. Selective remodeling and refurbishment of existing improvements will maximize their potential rental income. The repositioned parcels could then be retained as income properties; refinanced to provide funds for redevelopment; or resold at pricing based on their increased net income. The remaining parcels could then be redeveloped or held for future appreciation.

COMPLETE GROUND UP REDEVELOPMENT

The assemblage of six parcels provides a unique development opportunity rarely available in Waikiki. The combined parcels enable the development of a large multifamily project either for sale as individual condominiums or operated as a rental project. The Property’s location across from the recently developed Ritz-Carlton and diagonally opposite the announced development of a 230 room hotel will make this a premier address. Additionally, in-place zoning for the Kuhio Avenue frontage allows for retail uses. A sample development analysis* suggests that a 74,900 square foot project could be constructed which would include 5,000 square feet of commercial space.

*CBRE and owner make no representation or warranty as to the reliability or feasibility of this development study. This was produced by a third party for illustration purposes only.

2112 KUHIO AVENUE | 7 WAIKIKI OVERVIEW

The state of Hawaii, and Waikiki specifically, is one of the few resort destinations in the world that functions 365 days a year. Hawaii is the only place where mainland visitors can enjoy a tropical paradise while still having the comfort and security of being within borders.

The average temperature is a mild 78 degrees Fahrenheit and a steady trade wind ensures that the climate is temperate all year. You have the best air quality in the nation with virtually no air pollution. In addition, residents enjoy one of the world’s purest fresh water sources and have the longest life expectancy in the country.

Known around the world as a quality golf and resort destination, Hawaii offers visitors a relatively undisturbed natural environment with a host of activities including swimming, , golf, horseback riding, hiking, biking, kayaking, fishing, sailing, and epicurean dining.

Waikiki is the premier urban resort market in Hawaii and one of the foremost travel and shopping destinations in the world. Waikiki is 25 city blocks long and 4 blocks wide with a total land area of ±485 acres. Waikiki is bordered by Waikiki Beach to the south, the Ala Wai Canal to the north, Diamond Head Crater to the east • • and to the west. Kalakaua Avenue in Waikiki is the fifth ranked • Ala Moana Center • Urban/High Street retail market nationwide in terms of total retail sales and rents • Ala Wai Golf Course • Activities behind only Madison/5th Avenue in , Rodeo Drive in Los Angeles, • Diamond Head Crater • Sunset on the Beach movies Union Square in San Francisco and the Magnificent Mile in Chicago. • Lagoon • Waikiki Aquarium Along with hundreds of retail and food establishments, some popular destination • Fort DeRussy • Waikiki Beach points for visitors to Waikiki are: • • Ward Village

2112 KUHIO AVENUE | 8 LODGING MARKET

Hawaii offers some of the most luxurious vacation resort properties in the world with 28,976 visitor accommodations in Waikiki. The largest hotels in Waikiki are the Hilton Hawaiian Village (3,515 rooms), the Sheraton Waikiki (1,636 rooms), the Waikiki Beach Marriott (1,310 rooms), the Hyatt Regency Waikiki (1,230 rooms), and the Sheraton Princess Kaiulani (1,140 rooms). Luxury hotels in the area are represented by the 453-room Halekulani Hotel, the 526-room and the 791-room Westin Moana Surfrider. All three of these properties are located along the beach.

MAJOR SHOPPING AREAS

The prime shopping corridor in Waikiki is located along Kalakaua Avenue between Saratoga Road (to the west) and Uluniu Avenue (to the east). Within this area, there are eight major shopping venues: Luxury Row at 2100 Kalakaua, 280 Beach Walk, Waikiki Beach Walk, T Galleria/DFS, Waikiki Shopping Plaza, Royal Hawaiian Center, International Market Place, and The Hyatt Shops Waikiki. Pedestrian traffic surveys conducted along Kalakaua Avenue indicate that foot traffic varies between 600 and 1,200 pedestrians per hour.

This prime retail area also includes freestanding buildings, three office buildings (Bank of Hawaii Waikiki Center, Waikiki Galleria Tower, Waikiki Business Plaza, and Waikiki Trade Center), and multiple hotels (Hyatt Regency Waikiki Beach Resort & Spa, Outrigger Waikiki on the Beach, Westin Moana Surfrider, Royal Hawaiian Hotel, Sheraton Princess Kaiulani, Sheraton Waikiki, Halekulani, and the Waikiki Beachcomber, to name a few).

RETAIL PROFILE

Waikiki’s dominant players, in terms of sales per square foot, are the luxury boutiques. Chanel, Gucci, Tiffany & Co., Louis Vuitton, Harry Winston, Prada, Miu Miu, Valentino, Hermes, Cartier, Moncler, Bottega Veneta, Bvlgari, Fendi, and Saint Laurent are among the retailers who have impressive street front locations along Kalakaua Avenue in the prime shopping area.

The retailer with the largest location in Waikiki is the 210,000 sq. ft. T Galleria with luxury retailers such as Chloe, Coach, Dior, Emporio Armani, Loewe, Marc Jacobs, Pucci and Ralph Lauren.

More recent entrants to the market include Urban Outfitters, H&M, Harry Winston, Valentino, and Jimmy Choo.

2112 KUHIO AVENUE | 9 WAIKIKI REJUVENATION

Waikiki continues to upgrade and rebrand itself. Significant rejuvenation and development projects over the last few years include:

• The International Market Place recently reopened after its major redevelopment to a 345,000 sq. ft. three-story open air shopping center that is anchored by Hawaii’s first Saks Fifth Avenue store.

• Ritz-Carlton Residences Waikiki opened its first 38-story tower in July 2016 containing 307 studio, one-, two- and three-bedroom residential accommodations. Their second tower is currently under construction and will be a 37-story, 246-unit structure when it opens in 2017.

• Plans have been announced for the development of the 230 room King Kalakaua Plaza Hotel, to be situated at the corner of Kuhio and Kalaimoku, with tentative 2019 opening date.

• Waikiki’s hotels have traditionally been the introduction to hospitality with aloha for the first time visitor to Hawaii, and the repositioning of guest room inventory will pave the way to higher average daily rates for this submarket that has been operating with virtually no vacancy during extended periods of peak demand. The hotel stock in Waikiki has benefited from capital infusion in various forms that will amount to more than $660 million when finally complete, as outlined in table below. The Kuhio Avenue corridor is positioned for disproportionately greater ADR gains relative to the broader Waikiki market as the newly-minted and globally branded Hilton Garden Inn, Hyatt Centric and Autograph Collection properties make their presence felt. This hotel corridor is further advantaged by the reopening of International Market Place, which presents 500 feet of frontage on Kuhio Avenue that generates increased foot traffic and enhances visual appeal.

Launch Est. Property Units As Repositioned Date Cost

King Kalakaua Plaza 230 TBD* 2019 TBD

Ritz Carlton Residences (Tower 2) 246 Ritz Tower 2 2017 TBD

Queen Kapiolani Hotel 314 Queen Kapiolani Hotel 2017 $30,000,000

Pacific Beach Hotel 830 Alohilani Resort 2017 $60,000,000

Aqua Wave Waikiki 247 Autograph Collection 2017 $62,500,000

Maile Sky Court 600 Holiday Inn Express 2017 $30,000,000

Waikiki Trade Center 247 Hyatt Centric Waikiki* 2017 $65,000,000

Ritz Carlton Residences (Tower 1) 309 Ritz Carlton 2016 $275,000,000

Ohia Dormitory 251 Aqua Ohia Waikiki* 2016 $12,000,000

Ewa Hotel Waikiki 92 TBD 2016 $5,000,000

Ohana West Hotel 623 Hilton Garden Inn 2016 $115,000,000

Hokele Suites 112 Surfjack Hotel & Swim Club 2016 $20,000,000

*New guestroom supply Sources: CBRE Research, Q1 2017. 2112 KUHIO AVENUE | 10 STATE AND ISLAND OVERVIEW Hawaii is considered one of the most attractive regions in the country from a Waikiki currently has approximately 32,921 residents in just over 17,000 quality of life perspective. Not only does it boast world-famous beaches and a households with an average income of approximately $71,740 annually. temperate year-round climate, but it also benefits from a vibrant and diversified economy, making it an extremely attractive place to live and invest. Hawaii is UNEMPLOYMENT ideally positioned to benefit from international trade between the Pacific Rim According to the Hawaii State Department of Labor & Industrial Relations countries and the United States, earning its nickname as the “Crossroads of (DLIR), the unemployment rate for Hawaii fell 0.1% in January 2017 to 2.8%. the Pacific.” Direct flights from Hawaii to major U.S. cities, Canadian cities and The last time Hawaii’s unemployment rate was 2.8% was in July 2007. The Pacific Rim countries make travel to and from the islands extremely convenient. state unemployment rate is 2.0% lower than the national rate of 4.8%. The The shipping industry between the East and West also benefits from an excellent unemployment rate in Hawaii peaked in May 2009 at 7.3% and is now 4.5% harbor in Honolulu and is utilized extensively by cargo and cruise industry vessels. lower. These statistics speak to the state’s ability to create more jobs per capita Hawaii is an archipelago consisting of eight major islands. The capital of the state than the rest of the nation. As of January 2017, county’s umeployment rate of Hawaii is Honolulu, located on the island of Oahu. Much is 3.3%, with a high percentage of jobs in the leisure and of the State’s attractiveness stems from the unparalleled hospitality, retail trade, and education and health services climate and spectacular natural beauty, as well as the Hawaii has the longest life sectors. numerous employment opportunities and infrastructure FEDERAL DEFENSE SPENDING found throughout its main islands. expectancy in the United With its strategic location in the Pacific Ocean, Hawaii is DEMOGRAPHIC OVERVIEW States and is one of the the headquarters of the U.S. Pacific Command or USPA The population of the state of Hawaii is currently estimated COM, the world’s largest unified service command, at 1.44 million people, representing a 5.52% increase over few resort destinations in covering more than 50% of the globe. The command area the 2010 census. The estimated number of households spans from the west coast of the United States, to Africa’s in the state is approximately 477,631, which is expected the world that functions eastern coast, to as far north as the Arctic and as far to grow steady by 4.6% over the next five years. The south as Antarctica. estimated average household income for the state is 365 days a year. Per-capita federal spending in Hawaii ranks amongst approximately $89,117. The median age of Hawaii the highest in the nation at $9,033 in the 2017. Federal residents is 39.1 years. expenditures are one of the most important drivers of Oahu is the most populous of Hawaii’s islands and the state’s business and Hawaii’s economy. The latest data indicates that there were more than 125,600 government hub. The City and County of Honolulu, which encompasses the federal, state and local civilian jobs resulting from the federal military. entire island, is home to roughly three-quarters of the state’s population. Each Federal spending accounts for 22% of Hawaii’s Gross Domestic Product, and year, more than 5 million visitors enjoy the island’s many tourist attractions is one of the top three sectors in the state, along with tourism and real estate. including Waikiki beach, famed North Shore surfing spots, the USS Arizona The military installations in the state employ approximately 40,034 active military, Memorial and other attractions. 17,900 military civilians and 9,313 reserve military. The other personnel include The local population of the island of Oahu now stands at 999,751 which is a civilians paid from non-appropriated funds and full-time government contractor 4.9% increase since the 2010 census. Over the next five years, Oahu’s population personnel. is expected to grow 4.2%. Currently there are approximately 324,047 households with an average income of $94,342 annually. The median age of residents on Oahu is 38.2 years.

2112 KUHIO AVENUE | 11 STATE AND ISLAND TOURISM OVERVIEW

VISITOR INDUSTRY

The Hawaii Tourism Authority (HTA) manages the state government’s tourism per day. Visitors from the eastern U.S. appear to be less budget-conscious than budget and implements the state’s strategic tourism marketing plan. It does their western counterparts, spending $201.40 per person per day. The figure for so primarily through the Hawaii Visitor and Convention Center (HCVB), which Canadian visitors is $158.60 per person per day. maintains an aggressive marketing campaign throughout North America, Australia and Asia. The HTA and HCVB together have six offices in the United States, After lodging, at 82.7%, food and beverage is the largest expenditure category, five throughout Asia and two in Oceania. These state agencies do an excellent at 40.7%, followed by shopping at 28.4%. Non-Japanese visitors tend to spend job of not only promoting the industry, but also of tracking and making available less on shopping (about 10%) but more on lodging and food and beverages. The detailed data about visitor arrivals and activity. This data complements information per-day shopping average by Japanese visitors, high as it is, is eclipsed by the collected by private groups and provides the basis for important marketing tools remarkable $364.00 average spent per day by the growing number of visitors for hotel companies, travel industry groups, airlines and retailers. from China. Visitors from the other booming Asian economy, Korea, spend $295.50 per day. VISITOR ARRIVALS AIRLINE 2016 was the tourism industry’s Visitor Arrivals by Air (000’s) INDUSTRY best year ever for visitor arrivals, 10,000 8,563 8,833 visitor spending, tax revenue with a 9,000 8,029 8,174 8,196 With 99% of Hawaii 8,000 record number of 8.9 million visitor 6,917 7,174 visitors arriving by 7,000 6,420 arrivals. air, seat availability 6,000 5,340 5,462 4,904 5,044 5,193 is crucial to the 5,000 4,274 4,402 In 2016, the average length of 4,025 4,000 travel industry’s stay for visitors dropped 0.8% 3,000 success. In 2016, in comparison to 2015. The 2,000 more than 12 million average length of stay remains an 1,000 seats into the state impressive 8.99 days. By island, 0 were available, the breakdown of visitors length 2009 2010 2011 2012 2013 2014 2015 2016 representing nearly a State of Hawaii Oahu of stay is: Oahu - 6.81 days, Maui 0.7% increase over - 8.14 days, Hawaii Island - 7.49 2015. Airlines are days, and - 7.65 days. operating at a load factor of 87%. There were approximately 2.6 million air seats into Maui in 2016. Additionally, Hawaii’s air service network keeps expanding. VISITOR EXPENDITURES According to the Hawaii Tourism Authority, since 2010, there has been a 32% Visitor Expenditures/Per Person Per Day Spending increase in flights. New service flights include Hawaiian Airlines Haneda to The state’s impressive 20,000 $250.00 Kona added in December 2016, AirAsia X Kuala Lumpur to Osaka to Honolulu methodology for tracking daily scheduled to begin in June 2017, and Delta Airlines Seattle to Lihue scheduled to visitor movement results in an $200.00 15,000 begin in December 2017. extremely accurate breakdown $150.00 of average traveler expenditures. 10,000 LODGING In 2016, when viewed by $100.00 origination points, Japanese 5,000 $50.00 Hawaii’s lodging market closed 2016 on a high note, achieving its seventh visitors expenditures, at $240.8 consecutive year of RevPAR growth, at 4.8% for the year. December, traditionally per person per day, are 144% of 0 $- a peak month for the State, posted RevPAR growth of 7.2% over December those from the Western United 2009 2010 2011 2012 2013 2014 2015 2015. The Big Island and Kauai outperformed, with year-end RevPAR increases States, at $167.20 per person State of Hawaii Visitor Expenditure ($ mil.) Oahu Visitor Expenditure ($ mil.) State of Hawaii PPPD Spending Oahu PPPD Spending of 9.3% and 6.8%, respectively.

2112 KUHIO AVENUE | 12 NORBERT M. BUELSING (B) +1 808 478 4939 [email protected]

PETER GROSSMAN (S) +1 808 282 0086 [email protected]

JIE MING XIE (S) +1 808 277 0435 [email protected] 我会中文 欢迎咨询任何与房地产有关的 问题，乐意为您解答。

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