Over the weekend, we just reduced the price of the Marks Estate in Nuuanu to $4,599,000. This is over a $1 million reduction since we’ve hit the market last year at $5,643,000. We’ve since been in escrow 3 times, some of which were higher than the original asking price. Please keep in mind, this property was listed as high as $11,750,000 at the bottom of the market in 2010.
This Nuuanu Estate (MLS# 201601765) is now only $4,599,000
Today’s current asking price is a steal and here are 5 reasons why:
1. Land Value
Where else can you find 4.7 acres of residentially zoned property in Honolulu? Not much, correct? Some of the only few that come to mind are the Doris Duke Estate in Diamond Head or the Kaiser Estate in Portlock. Those are both oceanfront and would sell well north of $30-40 million if they were on the market today.
2. Replacement Costs
On tax records, there’s over 13,000 sq. ft. of improvements. To build anything somewhat “luxury” today, you’re looking at $400+ per sq. ft. In other words, to build this today would cost north of $5,200,000! That’s not including the land…Granted this home needs some TLC, however, the materials (which I won’t get into here) are over the top.
3. Comparable Sales in Nuuanu
3019 Old Pali Road – Just prior to coming on the market, a home up the street was 8,676 sq. ft. and sat on a property just under 1 acre. They were asking $3,975,000 and sold for $3,700,000. Only factoring improvements (we won’t even get into how ours has 3.7 acres more of land), this home sold for $426/sq. ft. We’re now priced at only $345/sq. ft., or a 19% discount.
187 Dowsett Avenue – While we were in our last escrow (which unfortunately dragged on for several months), this home on Dowsett went under contract and sold. It was a much more modest 6,735 sq. ft. of interior and sat on 3.7 acres (1 acre smaller than ours). They were asking $7,275,000 and ultimately sold for $6,450,000. Although it was in better condition, it was smaller and the property taxes ran almost $3,000/mo – which leads me to my next reason why we are a steal…
4. Low Property Taxes
Since this property sits on the City and County of Honolulu’s Historic Registry, one of the beauties is the annual property taxes are only $300 per year.
Placard fronting the property designating the Historic Residence
5. Deal Compared to Everything Else Around $4.5-5 Million
If you’re in the market with $4.5-5 million to spend, you can arguably get something with a better view. However, when comparing to the inventory out there in this price range, this is a steal. Since I’ve had this listing, a little (new) home on my street in Diamond Head that sat on only a 5,500 sq. ft. lot sold for $4.8 million. In addition, there are dozens of 2 bed condos under contract at Park Lane and Waiea in this price range. That doesn’t even include the resales available at buildings such as Hokua, Trump Waikiki, and others.
More Information on this Nuuanu Treasure
This is one of those opportunities that doesn’t come around that often. I have a feeling many are going to regret passing this up looking back a few years down the road. If you’re a serious qualified buyer in the market for something truly special in Honolulu, feel free to contact me for more information.