A shortage of housing in Hawaii that's spurring high rent growth has lured an investor to expand its property portfolio with a multifamily deal in one of the market's biggest sales of the year.
National real estate operator Waterton's purchase of the Oasis Townhomes at 94-207 Waipahu St. in Waipahu was selected as the winner of a CoStar Impact Award for sale/acquisition of the year for Hawaii by a panel of outside judges who are industry professionals familiar with the area.
Waterton, a Hawaii-based national real estate investor and operator, acquired the 18-acre, 406-unit townhome rental complex that includes 99 two-story garden-style buildings in Waipahu, to more than double its holdings in Hawaii. The firm previously acquired The Palms of Kilani, in Wahiawa with 106 rental units, and Waikele Towers, in Waipahu containing 50 units, purchased in partnership with Honolulu-based Tower Development, in December 2020.
The rental component of the property is important to the market, according to Impact Award Judge Grant E. Howe, managing partner of Commercial Properties in Maui.
The area has seen limited construction activity in recent years, leading to a significant housing shortage on the island and resulting in historically low vacancy rates and relatively high rent growth.
The property has 376 2-bedroom units and 30 3-bedroom units, with an average unit size of about 893 square feet. Unit amenities include modern features such as a dishwasher/disposal, in-unit washer and dryer, microwave, ceiling fans, and a patio or balcony.
Executives for the buyer said the deal was motivated by the opportunity to expand the firm's investment portfolio in an attractive location within a strong submarket of Honolulu.
About the Property: Built in 1965, the Oasis Townhomes are located near the 20-mile, 21-station HART rail, currently under construction, which will connect Waipahu to nearby employment and retail centers as well as the Daniel K. Inouye International Airport in Honolulu. Nearby employers include the Queen’s Medical Center, Pali Momi Medical Center and the University of Hawaii.
What the Judges Said: "This acquisition will benefit the entire community with the new investment and modernization of the property," said Impact Award Judge Mark D. Bratton, senior vice president at Colliers.
"It was also one of the largest transactions of the year in Honolulu. This was a very significant transaction," add Jay Elicker, senior vice president with Commercial Asset Advisors, LLC.
They Made It Happen: David Asakura, partner & principal broker, Commercial Asset Advisors.