Did you know that there are only 14 leasehold condo buildings remaining in Waikiki? With the majority of condos in Honolulu now converted to fee simple ownership, leasehold properties are becoming increasingly rare.
If you’re considering buying, selling, or currently own a leasehold condo, understanding the lease expiration timeline is crucial. In this blog, we’ll cover:
- Which Waikiki buildings are still leasehold
- When their leases expire
- What this means for owners and buyers
- Why financing a leasehold condo can be tricky
What Is a Leasehold Condo?
A leasehold condo means you own the unit, but not the land it sits on. Instead, you lease the land from the landowner for a set period. Once the lease expires, ownership typically reverts back to the landowner unless the lease is renegotiated or extended.
While leasehold condos are often more affordable than fee simple properties, they come with the risk of losing your investment when the lease ends.
The 14 Remaining Leasehold Condos in Waikiki
Here’s a list of the remaining leasehold condos in Waikiki and their respective lease expiration dates:
| Building Name | Lease Expiration Year |
|---|---|
| Capri Apartments | 2024 (Expired) |
| Kaioo Terrace | 2033 |
| Kuhio Village 2 | 2033 |
| Inn on the Park | 2035 |
| Hawaiian King | 2036 |
| Hawaiian Prince | 2040 |
| Tradewinds Hotel | 2040 |
| Royal Aloha | 2041 |
| Royal Kuhio | 2041 |
| Waikiki Lanais | 2042 |
| Regency Ala Wai | 2044 |
| Kalia Inc | 2048 |
| Kon Tiki Hotel | 2051 |
| 411 Kaiolu Inc | 2054 |
| Wailana | 2069 (Extended) |
What Does This Mean for Owners and Buyers?
For Leasehold Owners:
If your building’s lease is nearing expiration, you’ll need to consider your options:
- Is the fee available for purchase? Some landowners offer the fee, allowing you to convert to fee simple ownership.
- Will the lease be extended? Buildings like Wailana recently extended their leases to 2069, making financing easier and securing ownership for decades to come.
- What if the lease expires? In the worst-case scenario, you may have to walk away from your condo once the lease is up.
For Buyers:
Purchasing a leasehold condo can be a strategic move if you:
- Understand the risks and are comfortable with the lease expiration timeline.
- Plan to live in the condo short-term or use it as an investment.
- Are a cash buyer since financing options may be limited.
Financing Tip:
- Most lenders will not approve loans for leasehold condos with less than 30 years remaining on the lease. If you’re considering a leasehold unit, be prepared to pay cash or find alternative financing.
Why Fee Simple May Be the Safer Choice
While leasehold properties are typically more affordable, fee simple condos offer:
- Full ownership of the property and land
- No risk of lease expiration
- Easier financing and better resale value
For many buyers, the long-term stability of fee simple ownership is worth the higher upfront cost.
Final Thoughts: Should You Buy or Sell a Leasehold Condo in Waikiki?
The decision to buy or sell a leasehold condo ultimately comes down to your goals and risk tolerance. While some buildings may offer opportunities through lease extensions or fee purchases, others may not.
📞 Need expert advice? Whether you're thinking of buying, selling, or navigating leasehold ownership, I’m here to help. Call me at 808-371-3509 for a personalized consultation on Waikiki real estate.
What’s Your Take on Leasehold Condos?
Would you consider buying a leasehold unit, or do you prefer fee simple ownership? Let me know in the comments below! 👇