Institutional Property Advisors Brings Fee-Simple Waikiki Retail Asset to Market
March 04, 2026
HONOLULU, March 4, 2026 – Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI) dedicated to serving the company’s institutional clients, announced today the exclusive fee-simple offering of Discovery Bay, a 36,956-square-foot retail property with 250 spaces of structured parking in Honolulu’s Waikiki district. The property is being offered via an open bid process.
“A rare fee-simple retail asset in Waikiki’s X2 Special District, Discovery Bay benefits from exceptional exposure to Hawaii’s approximately 9.95 million annual visitors as they transition from Honolulu’s urban core into the state’s premier resort district,” said Alexander Kidani, associate director of investments with Marcus & Millichap, located in the firm’s Honolulu office. “In operation for over 40 years, the property generates over $1.7 million in annual net-operating income from essential services and has incredible upside in the parking, which is currently at well below market rates,” said Patrick Toomey, IPA senior managing director investments.
Kidani, Toomey, Tom Lagos, and Jose Carrazana of IPA are marketing the property alongside Trent Thoms of Marcus & Millichap, and in association with Adam Attia, Marcus & Millichap’s broker of record in Hawaii. The two-level street retail property and structured parking are located along Ala Moana Boulevard, directly across the street from Waikiki Beach at the base of the residential condominiums Endeavor Tower and Resolution Tower. Within a five-minute walk there are more than 5,600 hotel rooms at the Hilton Hawaiian Village, Ilikai Hotel, Ala Moana Hotel, and Hawaii Prince Hotel.
“We are pleased to present Discovery Bay to the global retail investment market in partnership with Trent and Alexander,” said Toomey. “Ala Moana Boulevard is Honolulu’s primary corridor for airport arrivals entering Waikiki from Honolulu International Airport and the neighborhood attracts approximately 1.2 million visitors annually.”
“Roughly 2,376 square feet, or 6.4% of the gross leasable area, is available across two suites, providing near-term upside through lease-up in a market where demand for small Waikiki shop space consistently exceeds supply,” said Thoms. “Furthermore, the upside in bringing the parking to market rates presents tremendous future upside in this supply-constrained market.”
Discovery Bay is anchored by McDonald’s, which has occupied the property since 1977 under a lease extending through 2038. The tenant roster includes salons, spas, convenience retail, restaurants, tour operators, auto rental and service tenants.
“A rare fee-simple retail asset in Waikiki’s X2 Special District, Discovery Bay benefits from exceptional exposure to Hawaii’s approximately 9.95 million annual visitors as they transition from Honolulu’s urban core into the state’s premier resort district,” said Alexander Kidani, associate director of investments with Marcus & Millichap, located in the firm’s Honolulu office. “In operation for over 40 years, the property generates over $1.7 million in annual net-operating income from essential services and has incredible upside in the parking, which is currently at well below market rates,” said Patrick Toomey, IPA senior managing director investments.
Kidani, Toomey, Tom Lagos, and Jose Carrazana of IPA are marketing the property alongside Trent Thoms of Marcus & Millichap, and in association with Adam Attia, Marcus & Millichap’s broker of record in Hawaii. The two-level street retail property and structured parking are located along Ala Moana Boulevard, directly across the street from Waikiki Beach at the base of the residential condominiums Endeavor Tower and Resolution Tower. Within a five-minute walk there are more than 5,600 hotel rooms at the Hilton Hawaiian Village, Ilikai Hotel, Ala Moana Hotel, and Hawaii Prince Hotel.
“We are pleased to present Discovery Bay to the global retail investment market in partnership with Trent and Alexander,” said Toomey. “Ala Moana Boulevard is Honolulu’s primary corridor for airport arrivals entering Waikiki from Honolulu International Airport and the neighborhood attracts approximately 1.2 million visitors annually.”
“Roughly 2,376 square feet, or 6.4% of the gross leasable area, is available across two suites, providing near-term upside through lease-up in a market where demand for small Waikiki shop space consistently exceeds supply,” said Thoms. “Furthermore, the upside in bringing the parking to market rates presents tremendous future upside in this supply-constrained market.”
Discovery Bay is anchored by McDonald’s, which has occupied the property since 1977 under a lease extending through 2038. The tenant roster includes salons, spas, convenience retail, restaurants, tour operators, auto rental and service tenants.
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About Institutional Property Advisors (IPA)
Institutional Property Advisors (IPA) is a division of Marcus & Millichap (NYSE: MMI), a leading commercial real estate services firm in North America. IPA’s combination of real estate investment and capital markets expertise, industry-leading technology, and acclaimed research offer customized solutions for the acquisition, disposition and financing of institutional properties and portfolios. For more information, please visit www.institutionalpropertyadvisors.com.