top of page
Kailua-Kona-HI-96740.jpg



Commercial Real Estate Land Investment in Hawaii

Investment Opportunity Overview

Project Summary:

Invest in prime commercial real estate in Hawaii, designed to capitalize on both immediate and long-term revenue streams. This opportunity includes five investment positions, each at $3,000,000, facilitating the creation of a Holding Company with diversified revenue channels.

Investment Structure:

 

  • Total Investment: $15,000,000

  • Investment Positions: 5

  • Investment Per Position: $3,000,000

  • Closing Date: June 21st, 2024


Property Description
 

  • Land: 57+ Acres of vacant land with entitlements

  • Tenure: Fee Simple

  • Zoning: MCX Industrial - Commercial mixed use


Opportunity Zone:
 
Tax Deferral:
Investors can defer tax on any prior gains invested in a Qualified Opportunity Fund (QOF) until the earlier of the date on which the investment is sold or exchanged, or December 31, 2026.
 
Step-Up in Basis:
If the QOF investment is held for at least five years, there is a 10% exclusion of the deferred gain. If held for at least seven years, the exclusion increases to 15%.
 
Permanent Exclusion:
If the investor holds the QOF investment for at least ten years, they are eligible for an increase in basis of the QOF investment equal to its fair market value on the date that the QOF investment is sold or exchanged.

Benefits for Investors:

  • Tax Incentives: The primary benefit is the deferral and potential reduction of federal capital gains taxes.

  • Economic Impact: Investments can contribute to the revitalization and economic growth of distressed areas.

  • Diversification: Opportunity Zones provide a new avenue for portfolio diversification with potentially high returns.



Holding Company & Equity Distribution
 

  • Holding Company Creation: A new entity will be formed to manage and oversee the commercial real estate assets and operations.

  • Equity Distribution: Each investment position will receive equal equity in the Holding Company, ensuring a balanced distribution of ownership and potential returns.


Revenue Channels
 

  1. Unit Sales:

    • Short-term returns will be realized through the strategic sale of commercial units. This provides immediate liquidity and profit to investors.

  2. Commercial Rental Arbitrage:

    • Leveraging market differences in rental rates, the Holding Company will sublease commercial spaces to maximize rental income, generating consistent cash flow.

  3. Seller Financing:

    • The Holding Company will offer financing options to buyers, creating a reliable income stream through interest payments over time.


Investment Highlights
 

  1. Commercial Real Estate Debt Opportunity:

    • Structured debt instruments will be created, offering secure, interest-bearing investments. This will appeal to investors seeking stable, long-term returns.

  2. Commercial Real Estate Arbitrage Opportunity:

    • By exploiting market inefficiencies, the Holding Company aims to achieve superior returns on rental properties through strategic leasing and subleasing practices.


Investor Profiles

Passive Capital Partners:

  • Role: Provide capital investment and receive returns without active management involvement.

  • Benefits: Stable returns from diversified revenue streams, equity appreciation, and potential dividends.


Strategic Commercial Real Estate Partners:

  • Role: Contribute capital and leverage industry expertise to enhance operational efficiency and profitability.

  • Benefits: Higher involvement in decision-making, potential for greater returns through active management, and equity growth.


Financial Projections & Returns

  • Short-Term Returns: Generated through unit sales, providing immediate liquidity and profit distribution.

  • Long-Term Revenue: Driven by rental income and interest from seller financing, offering consistent and stable returns over time.

  • Projected ROI: Detailed financial projections to be provided, illustrating expected returns from each revenue channel.


Call to Action

Join Us in Transforming Hawaii's Commercial Real Estate Landscape

  • Investment Positions Available: 5

  • Investment Amount: $3,000,000 per position

  • Closing Date: June 21st, 2024

bottom of page