Discovery Bay Retail
37,000 SF fee-simple Waikiki Retail + 250 Structured Parking with Upside
Marketing description
Institutional Property Advisors (IPA) is pleased to present Discovery Bay to the global retail investment market. Discovery Bay is a fee-simple*, world-class retail opportunity located at 1778 Ala Moana Boulevard and where Waikiki retail begins (“Property”).
Discovery Bay is positioned at the intersection of necessity and luxury, serving the essential needs of 660 residential units while capturing the aspirational spending of 1.2M tourist beginning their Waikiki experience.
Generating approximately $1.735MM of annual NOI and more than 40 years of proven operating history, Discovery Bay delivers defensive cash flow with a clear path to NOI growth through long term parking income optimization. The Property includes 250 parking spaces in the complex’s parking structure producing approximately $477,000 annually at below-market rates, offering an immediate NOI enhancement opportunity. The established, necessity oriented tenancy provides durable performance across economic cycles.
*Note: There is approximately 3% of the land associated with the retail condominium that is subject to a ground lease that expires in 2040, which includes a pre-negotiated sale price which can be triggered by the ground lessor any time between now and the expiration date (Put Option). The Seller will credit the net present value of the Put Option at closing of escrow
Investment highlights
Strategic Gateway To Hawaii: Discovery Bay sits at Waikiki’s front door, directly serving the majority of Hawaii’s 9.95 million annual visitors as they transition from Honolulu’s urban core into the state’s premier resort district. Positioned on Ala Moana Boulevard, the mandatory corridor for all airport arrivals entering Waikiki, the Property captures tourists at the very beginning of their Waikiki journey, where aspirational spending intersects with immediate food, convenience, and service needs.
Parking Infrastructure Upside: The Property includes 250 parking spaces generating approximately $477,000 annually under a ProPark contract through 2042. Discovery Bay’s historical parking rate of $15 per day was significantly below market, creating significant NOI growth by potential by strategically raising the rate to $40 per day.
Dual Engines Of Demand: Directly serving 660 condominium units in the Endeavor and Resolution towers, Discovery Bay has a built in, year round customer base for daily needs tenants. Layered on top of this is steady tourist demand from Waikiki’s 1.2 million annual visitors, producing diversified revenue streams that are less dependent on any single demand driver. Within a 5-minute walk radius there are 5,600+ hotel rooms.
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