Institutional Property Advisors Lists Fee-Simple Waikiki Retail Asset Discovery Bay for Sale via Open Bid
Institutional Property Advisors (IPA), a division of Marcus & Millichap (NYSE: MMI), announced March 4, 2026, the exclusive fee-simple offering of Discovery Bay, a 36,956-square-foot retail property located along Ala Moana Boulevard in Honolulu's Waikiki district. The property is being offered via an open bid process and includes 250 spaces of structured parking.
Property Overview and Location
Discovery Bay is a two-level street retail asset situated along Ala Moana Boulevard, directly across from Waikiki Beach and at the base of the residential condominium towers Endeavor Tower and Resolution Tower. The property sits within Waikiki's X2 Special District.
Within a five-minute walk of the property are more than 5,600 hotel rooms, including those at the Hilton Hawaiian Village, Ilikai Hotel, Ala Moana Hotel, and Hawaii Prince Hotel. Ala Moana Boulevard also serves as the primary corridor for airport arrivals entering Waikiki from Honolulu International Airport.
"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's Honolulu office.
Tenancy, Income, and Upside Potential
Discovery Bay has been in operation for more than 40 years. The property generates over $1.7 million in annual net operating income from a tenant roster that includes essential services, salons, spas, convenience retail, restaurants, tour operators, and auto rental and service tenants. McDonald's has anchored the property since 1977 under a lease extending through 2038.
Approximately 2,376 square feet — representing 6.4% of the gross leasable area — is currently available across two suites.
"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 Trent Thoms of Marcus & Millichap. "Furthermore, the upside in bringing the parking to market rates presents tremendous future upside in this supply-constrained market."
Patrick Toomey, IPA senior managing director of investments, also highlighted the parking component: "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."
Brokerage Team and Marketing Strategy
The offering is being marketed by Alexander Kidani, Patrick Toomey, Tom Lagos, and Jose Carrazana of Institutional Property Advisors, alongside Trent Thoms of Marcus & Millichap. Adam Attia serves as Marcus & Millichap's broker of record in Hawaii.
"We are pleased to present Discovery Bay to the global retail investment market in partnership with Trent and Alexander," Toomey said. "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."
No asking price, price per square foot, or cap rate has been disclosed, consistent with the open bid format. The transaction represents a fee-simple conveyance.