One Ala Moana
1555 Kapi’olani Boulevard #2206, Honolulu, Hawaii 96814
Private Capital Memo
This is not a rendering. This is the asset. Floor 22. One Ala Moana. The tenant who needs this already knows what they’re looking at. So does the right capital partner.
THE DEAL SNAPSHOT
| Line Item | Amount |
|---|---|
| Total Capital Deployed | $3,725,000 |
| Flat 10% Total Return | $372,500 |
| Total Funder Recovery Target | $4,097,500 |
| Funder Monthly Distribution (Accumulation Phase) | $33,386 |
| Funder Monthly Distribution (Post-Reserve Cap) | $38,021 |
| Operator Monthly Distribution (Accumulation Phase) | $8,347 |
| Operator Monthly Distribution (Post-Reserve Cap) | $9,505 |
| Months to Full Recovery | ~109 months |
| Estimated Full Recovery Timeline | ~9.1 years |
One capital partner. One asset. One revenue stream.
MARLET VALIDATION
SECTION 1 — THE ASSET
1555 Kapiolani Blvd PH 2206 One Ala Moana — Diamond Head Tower Honolulu, Hawaii 96814
3 Bedrooms · 3 Bathrooms · 2,114 sq ft Year Built: 2014 Parking: 2 dedicated spaces Ask: $3,500,000
A rare 3-bedroom, 3-bathroom penthouse in the Diamond Head Tower of One Ala Moana. Ocean and Magic Island views from every room. Ten-foot ceilings. Floor-to-ceiling windows. An open floor plan designed for the kind of tenant who doesn’t compromise.
The kitchen is already built for this tenant profile — Wolf and Miele appliances, convection and steam ovens, an oversized wine chiller, generous storage. This is not a kitchen you renovate. This is a kitchen you style.
Three complete bedroom suites. Three bathrooms. 2,114 square feet of interior space that will be furnished to match the building it lives in and the tenant it is built to hold.
THE BUILDING
One Ala Moana is not a condo building that happens to have amenities. It is a private residential club that happens to have units. The distinction matters.
Residents access a private movie theater, infinity pool, whirlpool, full fitness center, sauna, putting green, BBQ cabanas, spa treatment rooms, private dining and entertaining spaces, a library, and guest suites — all without leaving the building. Twenty-four hour security and concierge services. Two dedicated parking spaces included.
Positioned directly above Ala Moana Center. Minutes from Ala Moana Beach Park and Waikiki. Everything a traveling professional, executive, or long-term luxury tenant needs is either inside this building or within walking distance of it.
THE COMPARABLE
The Ritz-Carlton Residences Waikiki charges $87,000 per month for a 2-bedroom, 2-bathroom unit. Shared amenity access. Lower floor. A product this tenant profile tolerates when nothing better is available.
PH 2206 is a 3-bedroom, 3-bathroom penthouse with ocean views from every room, private residential amenities, and 2,114 square feet of interior space. It is not a lateral move from the Ritz. It is an upgrade.
Gross monthly rental income baseline: $70,000.
CAPITAL DEPLOYMENT
| Line Item | Amount |
|---|---|
| Acquisition | $3,500,000 |
| Furnishing Budget | $225,000 |
| Total Capital | $3,725,000 |
Unused furnishing budget is returned to the funder at project completion. You budget for the best version of this unit. Anything left over comes back.
THE RETURN
| Line Item | Amount |
|---|---|
| Total Capital Deployed | $3,725,000 |
| Flat 10% Return | $372,500 |
| Funder Recovery Target | $4,097,500 |
Funder receives 80% of net monthly rental income until the recovery target is met. Operator receives 20%. The RPA terminates automatically upon full recovery.
| Accumulation Phase | Post-Reserve Cap | |
|---|---|---|
| Funder (monthly) | $33,386 | $38,021 |
| Operator (monthly) | $8,347 | $9,505 |
| Funder (annual) | $400,632 | $456,252 |
| Operator (annual) | $100,158 | $114,060 |
| Recovery Target | $4,097,500 | |
| Estimated Full Recovery | ~109 months (~9.1 years) |
INCOME MODEL
GROSS MONTHLY RENTAL INCOME
PH 2206 is positioned at $70,000 per month under 29-day minimum stay agreements. This figure represents a deliberate discount to market. The Ritz-Carlton Residences Waikiki charges $87,000 per month for a 2-bedroom, 2-bathroom unit with shared amenities and no dedicated parking. A 3-bedroom, 3-bathroom penthouse with private residential amenities, ocean views from every room, and 2,114 square feet of interior space commands this rate without argument.
This is not a projection. It is a conservative entry point into a market with no direct competing inventory at this configuration.
MONTHLY CARRYING COSTS
| Line Item | Rate | Monthly Amount |
|---|---|---|
| HOA Dues | — | $3,831 |
| Property Taxes | — | $1,070 |
| Professional Cleaning | — | $3,000 |
| General Excise Tax (GET) | 4.712% | $3,298 |
| Transient Accommodations Tax (TAT) | 13.25% | $9,275 |
| Total Carrying Costs | $20,474 |
All carrying costs are covered within the first nine days of monthly rental income. The remaining 21 days flow entirely to the revenue participation structure.
NET MONTHLY RENTAL INCOME
| Accumulation Phase | Post-Reserve Cap | |
|---|---|---|
| Gross Monthly | $70,000 | $70,000 |
| Less Carrying Costs | ($20,474) | ($20,474) |
| Less Maintenance Reserve | ($2,000) | ($2,000) |
| Less Operating Reserve | ($5,793) | — |
| Net Available | $41,733 | $47,526 |
| Funder (80%) monthly | $33,386 | $38,021 |
| Operator (20%) monthly | $8,347 | $9,505 |
| Funder annual | $400,632 | $456,252 |
| Operator annual | $100,158 | $114,060 |
| Recovery Target | $4,097,500 | |
| Estimated Recovery | ~109 months (~9.1 years) |
MONTHLY DISTRIBUTIONS
| Accumulation Phase | Post-Reserve Cap | |
|---|---|---|
| Funder (monthly) | $33,386 | $38,021 |
| Operator (monthly) | $8,347 | $9,505 |
ANNUAL DISTRIBUTIONS
| Accumulation Phase | Post-Reserve Cap | |
|---|---|---|
| Funder (annual) | $400,632 | $456,252 |
| Operator (annual) | $100,158 | $114,060 |
FULL RECOVERY TIMELINE
| Amount | |
|---|---|
| Funder Recovery Target | $4,097,500 |
| Year 1 Recovery (12 × $33,386) | $400,632 |
| Remaining Balance After Year 1 | $3,696,868 |
| Months to Full Recovery at $38,021 | ~97.2 months |
| Total Estimated Recovery Timeline | ~109 months (~9.1 years) |
BASELINE ASSUMPTIONS
This income model assumes full monthly tenancy under 29-day minimum stay agreements. It does not account for:
- Pet fee income, which is non-refundable and flows into the maintenance reserve, not the participation split
- Any backend appreciation on the asset itself
Conservative scenario modeling is available on request. The baseline is built to be honest, not optimistic.
THE STRUCTURE
A Revenue Participation Agreement. Not a loan. Not equity. Not a partnership.
WHAT THIS IS
The funder provides capital in exchange for a defined percentage of net rental income generated by the asset.
No equity transfer. No partnership formation. No personal guarantee. No debt obligation created against the operator personally. The operator retains full legal title to the asset.
The funder holds a contractual right to revenue — secured against the asset itself, not the person behind it.
RECOURSE
Zero personal recourse to the operator.
The funder’s sole recourse is against the asset — not the operator’s personal income, personal assets, or other holdings. If the property generates no net rental income in a given period, the revenue participation suspends until income resumes.
A revenue participation agreement is not a guarantee of return. It is a share of documented income. The distinction is non-negotiable.
OPERATOR ALIGNMENT
The operator receives income only when the funder receives income.
A vacant month costs the operator $9,505 in lost personal income. The operator’s financial self-interest and the funder’s financial self-interest are identical.
That is not a clause in a contract. That is the structure itself.
YOUR PROTECTIONS
| Protection | Detail |
|---|---|
| Revenue Claim | Priority claim on all net rental income — distributions to funder precede any operator compensation |
| Reporting | Monthly — within 5 business days of month close |
| Distribution | Monthly — within 10 business days of month close |
| Audit Rights | Any time — 10 business days written notice |
| Asset Sale Protection | Funder made whole from proceeds before operator realizes any gain |
| Title Recording | RPA or equivalent security instrument to be structured in consultation with a Hawaii real estate attorney prior to contract execution |
No black box. No chasing. No wondering where your money is.
Reports and distributions arrive on a fixed schedule every month. Every month you can see exactly where you are in the recovery timeline.
This memorandum is an invitation to a conversation, not a binding instrument. All structural, legal, and tax terms — including the specific security mechanism recorded against title — will be confirmed and documented by a Hawaii real estate attorney and CPA prior to contract execution. Nothing in this memo constitutes a legal obligation by either party.
MAINTENANCE RESERVE
A monthly maintenance reserve of $2,000 is deducted from gross rental income prior to the net revenue calculation and held in a dedicated reserve account. This reserve is not distributed to either party.
The reserve accumulates to a maximum of $24,000. Once the $24,000 cap is reached, the monthly $2,000 deduction ceases and net rental income returns to the full baseline calculation until the reserve is drawn down below the cap threshold — at which point monthly contributions resume until the cap is restored.
Reserve funds are used exclusively for asset maintenance, repair, and condition preservation. Any expenditure from the reserve exceeding $5,000 is documented and reported to the funder within 5 business days.
Pet fees are non-refundable and deposited directly into the maintenance reserve fund. They do not flow through the revenue participation split. Pet fees exist to offset pet-related wear and damage beyond standard turnover and are held within the reserve until drawn for documented pet-related expenses. The $24,000 annual cap applies only to the standard $2,000 monthly contribution. Pet fees are additive to this structure and do not reset or replace the standard reserve contribution. Any unused pet fee balance at agreement termination is retained by the operator.
Unused reserve funds at agreement termination are retained by the operator.
Pet fee structure to be confirmed in consultation with a Hawaii real estate attorney prior to contract execution.
OPERATING RESERVE
A monthly operating reserve contribution of $5,793 is deducted from net rental income prior to distribution and held in a dedicated reserve account. This reserve is not distributed to either party.
The reserve accumulates to a target of $69,516, representing twelve months of fixed carrying costs. Once the target is reached, the monthly contribution ceases and net rental income returns to the full baseline distribution calculation until the reserve is drawn below threshold — at which point monthly contributions resume until the target is restored.
The operating reserve exists to ensure uninterrupted coverage of fixed carrying costs during vacancy periods, ownership transitions, or unforeseen revenue disruptions. It is held separately from the maintenance reserve and is not commingled with distribution funds.
Fixed carrying costs covered by this reserve include HOA dues, property taxes, homeowner’s insurance, and base utilities.
Unused operating reserve funds at agreement termination are retained by the operator.
EXIT SCENARIOS
In every exit scenario, the funder is made whole before the operator realizes any gain.
Full Capital Recovery — Upon cumulative distributions reaching $4,097,500, the RPA terminates automatically. The operator retains the asset free and clear. The funder exits with full principal returned plus a flat 10% total return on capital deployed.
Asset Sale Prior to Full Recovery — Funder receives their outstanding balance from sale proceeds at closing before any distribution to the operator. Funder is made whole from the transaction.
Operator Election to Refinance — Operator may elect to refinance at any point, using proceeds to retire the outstanding participation balance. Funder receives full remaining balance at that time.
WHAT THIS IS NOT
- Not a mortgage or personal loan
- Not an equity stake or ownership position
- Not a partnership or joint venture
- Not a personal guarantee
- Not a syndication
One asset. One revenue stream. One capital partner.
Clean structure. Clean exit. Clean math.
GOVERNANCE & REPORTING
You will always know exactly where your money is.
REPORTING SCHEDULE
| Report | Frequency | Delivery |
|---|---|---|
| Monthly Revenue + Occupancy Summary | Monthly | Within 5 business days of month close |
| Participation Distribution | Monthly | Within 10 business days of month close |
| Asset Condition Update | Quarterly | Within 10 business days of quarter close |
| Annual Summary Statement | Annual | Within 30 days of calendar year close |
WHAT EVERY MONTHLY REPORT INCLUDES
- Gross rental income received
- GET deducted (4.712% of gross — inclusive of Oahu county surcharge)
- Itemized operating expenses
- Net revenue calculation
- Funder participation amount
- Operator draw amount
- Cumulative capital recovery to date
- Remaining balance outstanding
- Current occupancy status and tenant summary
Every month you can see exactly where you are in the recovery timeline. No calculating. No estimating. No chasing.
DISTRIBUTION MECHANICS
Funder participation is distributed via wire transfer to a designated account on file. Distribution instructions are established at closing and remain fixed unless the funder provides written notice of change with 10 business days lead time.
No distribution is held, delayed, or offset without written notice to the funder explaining the variance and the resolution timeline.
AUDIT RIGHTS
The funder retains the right to audit revenue records, expense documentation, and occupancy records at any time with 10 business days written notice.
The operator maintains clean, organized financial records accessible for audit within the notice period. Records retained for a minimum of 7 years.
The operator has nothing to hide. The audit right exists to confirm that — not because it will need to be exercised.
DISPUTE RESOLUTION
In the event of a dispute regarding revenue calculation, expense allocation, or distribution amounts:
- Parties engage in good faith written communication within 10 business days of dispute notice
- If unresolved, a mutually agreed neutral CPA reviews records — cost split equally unless a material discrepancy is found in the operator’s records, in which case the operator bears the full review cost
- If still unresolved, binding arbitration in Honolulu, Hawaii under JAMS arbitration rules
Disputes go to a neutral third party. Not a courtroom. Faster, cheaper, and cleaner for both parties.
OPERATOR PERFORMANCE STANDARDS
The operator commits to:
- Maintaining the asset in ultra-luxury condition consistent with the C-suite tenant profile at all times
- Sourcing qualified tenants exclusively at 29-day minimum tenancy — no short-term rental use
- Responding to tenant maintenance requests within 24 hours for urgent issues, 72 hours for non-urgent
- Notifying the funder within 5 business days of any vacancy anticipated to exceed 30 days
- Notifying the funder within 5 business days of any material asset issue exceeding $10,000 in estimated repair cost
WHAT THE FUNDER NEVER HAS TO DO
- Chase a report
- Wonder about occupancy
- Calculate their own return
- Request a distribution
- Manage anything
The operator runs the asset. The funder receives the income.
That is the entire relationship.
THE DECISION
You have seen the asset. You have seen the market. You have seen the structure. You have seen the math.
This is the summary.
WHAT YOU ARE BEING ASKED TO DEPLOY
$3,725,000
One capital partner. One asset. One revenue stream. Not syndicated. Not complicated.
WHAT YOU RECEIVE IN RETURN
| Metric | Figure |
|---|---|
| Monthly Income (Accumulation Phase) | $33,386 |
| Monthly Income (Post-Reserve Cap) | $38,021 |
| Annual Income (Accumulation Phase) | $400,632 |
| Annual Income (Post-Reserve Cap) | $456,252 |
| Total Return on Capital | 10% flat — $372,500 above principal |
| Total Funder Recovery | $4,097,500 |
| Full Capital Recovery Timeline | ~109 months (~9.1 years) |
| Personal Recourse to Operator | Zero |
| Equity Position Required | None |
| Management Required | None |
You deploy capital. You receive monthly income. You are made whole. You do nothing else.
YOUR PROTECTIONS — SUMMARY
Monthly reporting and distribution on a fixed schedule. Full audit rights at any time. Made whole in full before the operator realizes any gain — in every exit scenario. Zero personal recourse means your downside is the asset, not a person.
Revenue participation or equivalent security instrument recorded against the asset, to be confirmed with Hawaii counsel prior to execution.
THE ASK
One conversation. One decision. One capital partner who wants clean structure, monthly income, and a hard asset backing their capital.
If that is you — the next step is a conversation.
READY TO EXPLORE THIS OPPORTUNITY?
Start a conversation.
This page is a private, confidential summary for qualified capital consideration only. Not a securities offering. Full legal documentation prepared by counsel prior to closing.