ATTENTION DEVELOPERS AND INVESTORS. This property is in the ENTERRISE/OPPORTUNITY Zone with all kinds of tax benefits. This is the last large oceanfront development property zoned M-1 which allows B-2 commercial. The plan for this property is to effectuate a section 2372 consolidation and re-subdivision of the 6.10 oceanfront acres and two additional contiguous TMK's owned by the Seller. The plan is to subdivide the 6.10 acres into 4 lots keeping the 26,200sf warehouse and its required parking on one lot (approx. 1-2 acres) and building 200-300 affordable rental apartments or affordable condominiums. Best case scenario would be 50 units in 6 buildings with a 45' height limitation. 3 to 4 buildings can easily be direct oceanfront. Because of the FEMA flood zone in the entire area the parking and commercial spaces would be on the first level and the apartments/condos on levels 2,3,4 and possibly a 5th level; i.e. 4 levels above grade. Since the county is in dire need of workforce housing many concessions could possibly be made; i.e. fast track the SMA permit process, fast track the 2372 subdivision and waive many county requirements market developments must pay. The guaranteed NOI (net operating income) is $400,000 for 24 months from closing. This allows the developer the necessary cash flow to carry to debt service and allow the time needed for the entitlements and permits. If the developer does not want or need the warehouse I can sell that at a 6.5% cap rate and close the sale when the subdivision is complete and ready to close. If the warehouse was sold at $6,000,000 the cap rate is 6.66% and brings the cost basis of the acquisition down exponentially; eg. If the property sold for $8,000,000 which would include the 2 additional TMK's the price for the land drops to $2,000,000. Where on Maui can you buy 4 + - oceanfront acres zoned M-1 for $2m? It gets better. M-1 allows B-2 zoning above the first floor. B-2 allows 20 TVR's (transient vacation rentals) per lot. I don't know how the county would look at the mixed use but with 3 buildable lots would allow 60 TVR's at $125 per night would generate an additional gross income of $2,700,000 a year. The county may say no.
This information is believed to be accurate. It has been provided by sources other than the Realtors Assoc. of Maui and should not be relied upon without independent verification.
You should conduct your own investigation and consult with appropriate professionals to determine the accuracy of the information provided and to answer any questions concerning the property and structures located thereon.
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