Honolulu Apartment Portfolio Sells for $39.5 Million in Off-Market Deal

  • Two Honolulu Apartment Buildings Sell for $39.5 Million in Off-Market Deal

    Two multifamily apartment buildings in Honolulu’s McCully neighborhood have sold for a combined $39.5 million, highlighting continued activity in the city’s multifamily investment market.

    The off-market transaction involved 195 total apartment units across McCully Circle Apartments and Punahou Circle Apartments. Excel Commercial Realty advised the buyer, MW Group, while Bank of Hawaii arranged financing for the acquisition. Both properties closed on September 10, 2026.

    Details of the Transaction

    McCully Circle Apartments, located at 1919 Citron Street, sold for $21.5 million. The nine-story property contains 99 units, including 70 one-bedroom and 29 two-bedroom apartments. The building also has covered parking, elevator access, on-site laundry, and secured entry.

    Punahou Circle Apartments, located at 1617 S. Beretania Street, sold for $18 million. The 96-unit property includes 24 studio apartments, 48 one-bedroom units, and 24 two-bedroom units.

    Together, the properties represent a 195-unit multifamily portfolio in one of Honolulu’s established urban neighborhoods.

    A Central Honolulu Location

    Both properties are located near major schools, medical facilities, shopping centers, and transportation corridors.

    The properties are close to Punahou School, Maryknoll School, the University of Hawaiʻi at Mānoa, Kapiʻolani Medical Center, Shriners Children’s Hawaiʻi, and Ala Moana Center. Their location also provides access to major east-west routes through Honolulu.

    McCully is positioned between Ala Moana and the University of Hawaiʻi area, giving the neighborhood access to employment centers, education, healthcare, shopping, and other services. MW Group describes McCully Circle Apartments as being in a walkable neighborhood near Waikīkī, Kapiʻolani Boulevard, and local shops and restaurants.

    A Property With Historical Significance

    Punahou Circle Apartments has an additional connection to Honolulu history. The property is identified as the apartment building where Barack Obama lived during his childhood while attending Punahou School.

    That historical connection adds a distinctive element to a transaction that otherwise centers on multifamily investment and property repositioning.

    Why the Off-Market Structure Matters

    The transaction was completed without a traditional public marketing process.

    According to Excel Commercial Realty, the seller was a local family ownership group with multiple stakeholders. The buyer and its advisors also identified significant deferred-maintenance needs during due diligence, requiring additional evaluation and planning before the transaction closed.

    Excel Commercial Realty said the buyer plans to reinvest in and reposition the properties over the long term. The firm’s transaction materials also note that the properties have below-market rents, creating potential opportunities to improve units and increase income and cash flow through investment in the assets.

    What This Means for Honolulu’s Multifamily Market

    The transaction demonstrates that large multifamily properties in Honolulu’s urban core continue to attract investors when the location, property fundamentals, and potential for future improvements align.

    At the same time, this single transaction should not be viewed as evidence of the entire Honolulu apartment market. Individual investment decisions can vary considerably depending on property condition, rents, financing, location, and the potential for future improvements.

    The sale does, however, illustrate the type of opportunity that can attract buyers seeking established multifamily properties in centrally located neighborhoods.

    Key Takeaway

    The sale of McCully Circle Apartments and Punahou Circle Apartments represents a $39.5 million, 195-unit multifamily transaction in central Honolulu.

    McCully Circle sold for $21.5 million, while Punahou Circle sold for $18 million. The off-market acquisition was made by MW Group with financing arranged by Bank of Hawaii, and Excel Commercial Realty advised the buyer.

    For property owners and investors, the transaction highlights the potential value of well-located multifamily assets while also demonstrating the importance of due diligence, capital planning, and understanding a property’s long-term repositioning potential.