Comps For #4210



FIRST – ADJUSTMENTS MUST BE MADE

  • ADJUSTMENTS
    Must be made where appropriate in order to make an "apples to apples" comparison between our two Studios & other Island Colony Condos that:
    • have recently SOLD, or
    • are Currently FOR SALE
  • NOTE: This page needs to be further updated and is currently in that process as follows:
    • The links in the last section titled "COMPARISONS," which are links to spread sheets and pdf documents that quote recent condo sales in the Island Colony, will not be active until these documents can be properly updated with present day figures so that a proper comparison with #4210 can be made.

THE FIVE (5) TYPES OF ADJUSTMENTS:

  1. HIGHER vs LOWER FLOOR = $3,000 per floor:
    • SALES EXAMPLE #1:
      • #3114 Sold (FS) for $230,000 on 12/11/14
        • Low Grade Remodel = new floors + new furniture
      • #3514 Sold (FS) for $243,000 on 1/8/15
        • No Remodeling done
      • The difference in purchase price is $13,000
      • There are 4 floors between the 35th and 31st Floors
      • $13,000 / 4 Floors = $3,250 per floor
      • NOTE: $3,250 per floor is Actually too Low since:
        • The Higher Floored #3514 was NOT Remodeled while the Lower Floored #3114 was.
        • Therefore the comparison is NOT apples to apples
        • An remodelled #3514's sales price would have been MORE than $243k
        • Therefore the $13,000 difference would have been MORE.
        • Therefore the $3,250 per floor would have also been MORE.
    • SALES EXAMPLE #2:
      • #1215 Sold (FS) for $225,000 on 3/11/15
      • #4115 Sold (FS) for $300,000 on 4/9/15
      • The difference in purchase price is $75,000
      • There are 28 floors between the 12th and 41st Floors (no 13th floor in building).
      • $75,000 / 28 Floors = $2,680 per floor
      • Both Condos had comparable but minimal remodels, so the comparison is apples to apples.
    • SALES EXAMPLE #3:
      • #1803 Sold (FS) for $239,900 on 3/20/15
        • Inexpensive Remodel = new floors + kitchen cabinets only
      • #3903 Sold (FS) for $315,000 on 4/14/15
        • Inexpensive Remodel = new tile/lam floors + new Kitchen cabs
        • Sold UNFURNISHED
      • The difference in purchase price is $75,000
      • There are 21 floors between the 18th and 39th Floors
      • $75,000 / 21 Floors = $3,572 per floor
      • NOTE: $3,572 per floor is Actually too Low since:
        • The Higher Floored #3903 was sold UNFURNISHED while the Lower Floored #1803 was sold FULLY FURNISHED.
        • Therefore the comparison is NOT apples to apples
        • A Fully Furnished #3903's sales price would have been MORE than $315k
        • Therefore the $75,000 difference would have been MORE.
        • Therefore the $3,571 per floor would have also been MORE.
    • CONSERVATIVE ADJUSTMENT = $3,000 per higher floor
      • The average per floor amount for all 3 examples is $3,167
      • $3,000 is LESS THAN the $3,167 average per floor
  2. A STUDIO vs A LODGING = $25,000:
    • DEFINITIONS:
      • A STUDIO:
        • Is zoned to have a FULL KITCHEN . It may have:
          • A Sink
          • A Full Size Refrigerator
          • and Cooking Facilities like burners, ovens, and microwaves.
        • There are ONLY six (6) STUDIOS on each Island Colony Floor as follows:
          • On the Diamond Head Side: Units that end in 07, 11, and 17
          • On the City side: Unit #'s that end in 06, 10, and 14.
      • A LODGING:
        • Is zoned to have only a PARTIAL KITCHEN. It may have only 2 of the following three:
          • A Sink
          • A Small Refrigerator
          • COOKING FACILITIES such as burners, ovens, or microwaves
        • There are ten (10) LODGINGS on each Island Colony Floor as follows:
          • On the Diamond Head Side: Unit #'s that end in 03, 05, 09, 15, and 19
          • On the City side: Unit #'s that end in 04, 08, 12, 16, and 18.
      • STUDIOS and LODGINGS have Identical Floor plans.

    • FACTS:
      • A unit with LIMITED KITCHEN facilities:
        • Does not fetch as high rent as one that has a full kitchen
        • Is more difficult to rent long term (due to no cooking facility)
        • Is less attractive for Owner occupancy (due to no cooking facility)
        • Cannot be mortgaged:
          • No bank will give mortgage loans for Lodgings because they are not zoned to have full kitchens -- the banks have very strict rules on what constitutes a full kitchen for mortgage purposes.
          • This forces all potential buyers to:
            • Have all cash for full purchase price, or
            • Be seller financed
          • This makes the potential buyer pool smaller for Lodgings.
      • Many Lodging unit Owners Ignore that they are not zoned to have a full kitchen. They install one nonetheless.
        • This fact must be disclosed when selling the unit.
        • At anytime, especially if someone reports this infraction to the Honolulu Zoning & Permitting Department, the officials can force the owner to remove one of the three categories that define a FULL Kitchen (i.e. the owner is forced to remomve the sink, or all forms of refrigeration, or all appliance that cook) to bring the unit back into compliance with the way the unit is zoned, i.e. back to having only a partial (NOT a FULL) kitchen.
      • There are 6 Studios on each Floor as follows:
        • On the Diamond Head Side: Unit #'s that end in 07, 11, and 17
        • On the City side: Unit #'s that end in 06, 10, and 14.
      • There are ten (10) LODGINGS on each Island Colony Floor as follows:
        • On the Diamond Head Side: Unit #'s that end in 03, 05, 09, 15, and 19
        • On the City side: Unit #'s that end in 04, 08, 12, 16, and 18.
    • CONSIDERATIONS:
      • Nothing can ameliorate that Lodging units cannot be mortgaged & therefore Lodgings have a smaller potential buyer pool since there are fewer all cash buyers.
      • As atated above, currently many of the Island Colony Lodging units have illegally installed full kitchens -- in this way their owners can ameliorate the above stated rental obstacles.
      • However, as stated above, illegal kitchens pose other potential problems:
        • When selling such a Lodging condo, the Seller MUST DISCLOSE to the potential buyer that the full kitchen has been illegally installed
        • To install burners in a Lodging unit the owner needs to get approval from the Board of Directors (BODs)
          • Because it is against the zoning laws, the BOD cannot, & therefore will not, approve such owner proposals
        • If the owner installs burners anyway, there is a chance that the owner could be fined & made to remove the burners if anyone reports this zoning law violation to either:
          • The BODs, or
          • The City & County of Honolulu Zoning & Permitting Office

    • CONSERVATIVE ADJUSTMENT = A STUDIO is worth $25,000 more than a LODGING.
      • This is VERY conservative given all the facts and considerations listed above
  3. LEASE HOLD vs FEE SIMPLE = $59,486.55 for a STUDIO and $58,427.53 for a LODGING:
    • FACTS:
      • Current Price to Purchase the Fee for the land from the AOAO is different depending on whether it is for a STUDIO or for a LODGING.

      • FEE COST FOR A STUDIO is calculated as follows:
        • Basic STUDIO Sales Price = $38,365.85
        • Plus a proportionate share of the Interest incurred by the AOAO for their loan from 5-4-06 to the close of escrow, which we will assume to be 6-1-15, as follows:
          • Interest Share for a STUDIO is $5.28 per day from 5/4/06 until 3/28/11
          • 365 X $5.28 = $1927.20 Interest per year
          • 5/4/06 to 5/4/10 = 4 years
          • 5 years x $1,927.20 = $7,708.80 Interest for those 4 years
          • From 5/4/10 to 3/28/11 is 328 days = 328 days x $5.28 = $1,731.84 Interest from 5/4/10 to 3/28/11
          • Add 2 more days for 2008 and 2012 leap years = $147.84 + (2 * $5.28) = $158.40
          • So total STUDIO Share of Interest to be paid to the AOAO to cover from 5-4-06 to 6-1-15 is: $17,344.80 + $158.40 = $17,503.20
        • Interest Share for a STUDIO is $5.28 per day from May 4, 2006 until escrow for the purchase of this Fee closes
        • 7562.8 9261.84 283.48 280.02
        • Pass down costs for a STUDIO incurred by the AOAO to purchase the fee for the entire piece of land from the Weinberg Trust = $2,017.50. This includes:
          • Actual AOAO Passdown for a STUDIO (Original Acquisition Costs and Fees) = $1,615.86
          • The fees charged by the agent, Monarch Properties, to broker the purchase = 1% of Sales Price = 1% x $38,365.85 = $383.66
          • GET on the Agent's fee = 4.712% x $383.66 = $18.08
          • $1,615.86 + $383.66 + $18.08 = $2,017.50
        • Escrow Costs:
          • Basic Escrow costs are $1,600
          • NOTE: Trust or title release issues or mortgaged purchases will cost more in escrow fees
        • Total Minimum cost to purchase the Fee for the land for a STUDIO Condo assuming escrow would close by 6-1-15 is
          $38,365.85 + $17,503.20 + $2,017.50 + $1,600 = $59,486.55

        • Add $5.28/day for every day AFTER 6-1-15 until escrow closes

      • FEE COST FOR A LODGING is calculated as follows:
        • Basic LODGING Sales Price = $37,674.58
        • Plus a proportionate share of the Interest incurred by the AOAO for their loan from 5-4-06 to the close of escrow, which we will assume to be 6-1-15, as follows:
          • Interest Share is $5.18 per day from May 4, 2006 until escrow for the purchase of this Fee closes
          • 365 X $5.18 = $1,890.70 Interest per year
          • 5-4-06 to 5-4-15 = 9 years
          • 9 years x $1,890.70 = $17,016.30 Interest for 9 years
          • From 5-4-15 to 6-1-15 is 28 days = 28 days x $5.18 = $145.04 Interest from 5-4-15 to 6-1-15
          • Add 2 more days for 2008 and 2012 leap years = $145.04 + (2 * $5.18) = $155.40
          • So total Share of Interest to be paid to the AOAO to cover from 5-4-06 to 6-1-15 is: $17,016.30 + $155.40 = $17,171.70
        • Pass down costs for a LODGING incurred by the AOAO to purchase the fee for the entire piece of land from the Weinberg Trust = $1,981.25. This includes:
          • Actual AOAO Passdown for a LODGING (Original Acquisition Costs and Fees) = $1,586.75
          • The fees charged by the agent, Monarch Properties, to broker the purchase = 1% of LODGING Sales Price = 1% x $37,674.58 = $376.75
          • GET on the Agent's fee = 4.712% x $376.75 = $17.75
          • $1,586.75 + $376.75 + $17.75 = $1,981.25
        • Escrow Costs:
          • Basic Escrow costs are $1,600
          • NOTE: Trust or title release issues or mortgaged purchases will cost more in escrow fees
        • Total Minimum cost to purchase the Fee for the land for a LODGING Condo assuming escrow would close by 6-1-15 is
          $37,674.58 + $17,171.70 + $1,981.25 + $1,600 = $58,427.53

        • Add $5.18/day for every day AFTER 6-1-15 until escrow closes

      • Exhibit 2 of the Standard Sales Agreement that must be signed by all purchasers is a table that outlines all of the above figures.

      • To verify the above figures or to get more information, call Monarch Properties, the Broker handling the Sale of the Fee to LH owners, at 808-735-0000
    • CONSERVATIVE ADJUSTMENT:
      • For a STUDIO = $59,486.55
      • For a LODGING = $58,427.53
  4. TOTAL SQUARE FEET ADJUSTMENT
    • CALCULATION:
      • PRICE PER SQUARE FOOT (PPSF):
        = Purchase Price (or Asking Price) Divided By Total Square Feet of unit Sold (or For Sale)
      • SQUARE FOOT DIFFERENCE (SFD):
        = Square Foot Area of #4210 Minus Square Foot Area of comparison unit
      • TOTAL SQUARE FOOT ADJUSTMENT = SFD * PPSF
    • NOTE:
      Since PPSF depends on the Purchase Price (or Asking Price) of the unit to which we are comparing #4210, the SQUARE FOOT ADJUSTMENT will be different for each unit we compare to #4210
  5. RENOVATION ADJUSTMENT:
    • FACTS:
      • MATERIALS + PLUMBER COSTS + PROFESSIONAL LABOR COSTS were:
        • $127,000 for #4210
        • NOTE: These costs do not include our own labor.
      • Given this experience, we KNOW identical renovations would not be possible for less than what we spent for #4210, considering:
        • We thoroughly researched before we bought any materials
        • What we spent did not include our own labor costs, which was a very significant number of hours
        • The rising cost of labor & shipping due to ever increasing Hawaii cost of living and fuel costs
    • CONSIDERATIONS:
      • $127K EXTENSIVE RENOVATIONS Include:
        • Total Renovation of entire Bathroom including:
          • Custom Built Cherry Wood Vanity with custom shaped sink
          • 2 fully Mirrored Walls
          • 1 Tiled Wall
          • Diamond Pattern Tiled Floor
          • Brand New 54" Kohler Cast Iron Bath Tub
          • New American Standard Toilet
          • All new High end German Grohe Fixtures
          • New Bathroom fan wired to be independent of light switch
          • Replaced studs around bath tub!
          • Re-plumbed entire bathroom
          • Re-wired entire bathroom
          • New lights
          • Tempered Glass Shower Barrier
          • Caulking and Sealing the tile & bathtub
          • Entire Bathroom Painted
          • Rebuilt Ceiling with Copper Pipe Exposure
        • Total Renovation and Expansion of entire Kitchen including re-wiring & re-plumbimg including:
          • Counter Tops are Italian Black Granite
          • Commercial LG Stainless Steel French Door Refrigerator
          • Custom Made Solid Maple Wood Kitchen Cabinets with easy close hardware
          • Stainless Steel Quiet, full sized Dishwasher
          • Stainless Steel 30" Built in LG Microwave with Carbon Filter Vent System Plus a 5 year warranty
          • Extra Large, extra deep Stainless Steel Sink
          • High end German Grohe Fixtures
          • Built in Small Oven
          • Premium Garbage Disposal: very quiet plus has a 5 year warranty.
        • Kitchen Lavishly equipped with quality Stoneware Dish set, Lead Crystal Stem ware and glasses, Crock Pot, Blender, Small Food Processor, quality Pots & Pans & Cookware, Coffee Maker, Blender, Rice Cooker, quality flatware & knives, etc.
        • New Solid Real Maple Wood Floors
        • Refinished (pop-corn removed), smooth Ceilings with Crown moldings
        • Beautiful Base Board Moldings
        • Replacement of jalousies with Tempered, floor to ceiling 150 mph wind resistant Plate glass
        • New ceiling-mounted AC
        • Custom Built Mirrored Queen Murphy Bed with Interior Reading lights Flanked by 2 Matching Mirrored Closets
        • Custom Built Twin Sized Futon Storage Unit
        • 48" LCD high end TV (Purchased January, 2016)
        • Expensively Furnished with a Black Italian Leather Natuzzi Sofa & Matching Footstool, a Beautiful Black Solid Wood Armoir, Black Oak Table, 2 chrome & black walnut smaller end tables, and 2 Crystal Glass & Chrome Based Dining Tables & chairs (1 for Living Area, 1 for Lanai)
      • After thorough research our naïve estimate was $45k-$50k (#4210) including labor to do this renovation! We learned the hard way and too late:
        • These estimates were unrealistic given this Hawaii location!
        • Reliable, competent contractors/ workman, journeymen & materials are absolutely NOT readily available here in Hawaii
        • Doing these renovations was not pleasant, in fact it was painful & very time consuming.
        • This extemsove renovation took over two years to complete (due to shipping delays, defective materials, irresponsible or incapable workmen, & plumber delays), in addition to lots of our own time, energy, blood, sweat & tears
        • Why all the other condos in the IC have cheap, sloppy, low-end renovations -- it's the economical, most efficient path of least resistance!
    • How we handled the RENOVATION ADJUSTMENT in our comps below:
      • If the Sold or For Sale unit has been remodeled or renovated:
        • The cost of said renovations will be generously estimated
        • This estimated amount will be deducted from our $127k renovation cost = the RENOVATION ADJUSTMENT.
        • The Renovation Adjustment = How much MORE we spent on our renovation than the comp unit owners spent on theirs.

COMPARISONS:

Click on one of the following pdf files:

NOTE: These files are currently being updated. Please check back at a later date. Mahalo

  • #4210 Compared with recently SOLD Island Colony (IC) Units:
    • Presented in outline form with explanations for each Condo SOLD
    • Presented in Spread Sheet format


  • #4210 Compared with IC Units that are currently Actively on the market FOR SALE:
    • Presented in outline form with explanations for each Condo FOR SALE
    • Presented in Spread Sheet format









#4210 LIVING AREA




Gourmet Kitchen-Solid Maple Cabinets
Guests Sit & Eat Pupus as You Cook
New Stools replace above Round Ones
Leather Natuzzi Sofa & Footstool
Custom Built Twin Futon Storage Unit on Lanai
Mirrored Murphy Bed & Closets
Queen Murphy Bed Opened Up




#4210 KITCHEN DETAILS




Stainless French Door LG Large Refrigerator
Inside View of Large Capacity SS LG Refrigerator
Custom Solid Maple Cabinets & SS LG MW
Stainless LG Microwave w/ Carbon Filter Vent
Glass 2 Burner Easy Clean Cook Top Under MW
Extra Large/Deep Stainless Sink / Grohe Fixtures
Quality Lead Crystal Wine Glasses Included
Quality Red Stoneware Dish Set Included
Kitchen Is Well Equiped & All is Included
+ Blender, Coffee Maker, Crock Pot, Sm Chopper




#4210 Bathroom Details




Custom Cherry Wood Vanity & Custom Sink
Custom Sink & German Grohe Fixtures




#Island Colony Details




Front Entrance into Inner Lobby
Inner Lobby with 24/7 Security Desk & Sign-In
Inner Lobby & Side Entrance Etched Doors
Wall of Inner Lobby Opposite Security Desk
Side Door Entrance INTO Inner Lobby
Inner Lobby Welcome Mosaic & 3 Closed Elevators
Close Up of Inner Lobby Welcome Mosaic
Another Close Up of Inner Lobby Welcome Mosaic
1 of 4 Inner Lobby Elevators to Condo Tower
1 of 6 Unique Mosaics in Each of the 6 Elevators
Open Air Public Outer Lobby
Close Up of BBQs







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