Built in 1977, the Discovery Bay building currently has 14 units for sale, ranging in price from $260,000 - $730,000. Located in the Waikiki neighborhood, there have been 5 sales in the last 60 days, with a median sold price of $315,000.

These units sold in 37 days on average. Building amenities include whirlpool, trash chute, security guard, sauna, patio/deck, pool on property, heated pool, exercise room, recreation area, bbq.

Nearby Condos

• Ilikai Apt Bldg (1965)
• The Ritz-Carlton Residences - 383 Kalaimoku (2014)
• The Ritz-Carlton Residences Twr 2 - 383 Kalaimoku (2018)
• Waikiki Banyan (1977)
• Villa On Eaton Square (1974)

The Back Driveway at Discovery Bay

View Of Discovery Bay from the front

Discovery Bay is a high rise condo in the Ala Moana/Waikiki area of Honolulu.   Known for its convenient location and views of the ocean, harbor, and city skyline, Discovery Bay has been a popular choice for both residents and investors since its completion in 1977. There are two towers, the Resolution Tower and the Endeavor Tower. One of the unique aspects of Discovery Bay is its history with leasehold ownership and the opportunity for conversion to fee simple, which has significant implications for potential buyers.

It's so popular with investors that it was the 5th most sold condo on Oahu in 2013, with 48 total sales! 

Understanding Leasehold Ownership

When Discovery Bay was originally developed, most of the units were sold as leasehold properties. In a leasehold arrangement, the buyer owns the condo unit, but not the land it sits on. Instead, the land is leased from the landowner, typically for a long term (such as 55 or 99 years). The leaseholder is required to pay a monthly lease rent to the landowner in addition to regular maintenance fees and property taxes. As the lease term decreases, the value of the leasehold property can decline, and the lease rent may increase when the lease is renegotiated.

Leasehold to Fee Simple Conversion

In recent years, there has been a significant shift at Discovery Bay as many unit owners have opted to convert their leasehold interests to fee simple ownership. Fee simple ownership means that the buyer owns both the condo unit and the land it sits on outright, eliminating the need to pay lease rent. This conversion can be a significant financial decision, as purchasing the fee interest typically requires a substantial payment to the landowner.

The opportunity to convert from leasehold to fee simple is attractive to many buyers for several reasons:

1. Long-Term Security: Fee simple ownership provides long-term security and stability, as there is no risk of lease renegotiation or expiration.

2. Property Value: Fee simple properties generally hold their value better over time compared to leasehold properties, making them more attractive for resale.

3. Investment Potential: Fee simple condos are often more appealing to investors, as they do not come with the uncertainty of leasehold arrangements.

The Discovery Bay AOAO website has more information on this Lease to fee conversion.   

Considerations for Buyers

While the option to convert to fee simple is available for many units at Discovery Bay, it's important for buyers to carefully consider the costs and benefits. The fee conversion price can vary depending on factors such as the remaining lease term and the specific unit. Potential buyers should also evaluate their long-term plans for the property and whether the conversion aligns with their financial goals.

It's also worth noting that not all units at Discovery Bay have been converted to fee simple, so buyers need to verify the ownership status of any unit they are interested in. Working with a knowledgeable real estate agent is crucial to navigating the complexities of leasehold to fee simple conversion. 

Amenities and Features

Discovery Bay offers a range of amenities that enhance the living experience for its residents. These include:

• Swimming Pool and Jacuzzi: A well-maintained pool and Jacuzzi area for relaxation.
• Fitness Center: A gym equipped with modern exercise equipment.
• Sauna: For unwinding after a long day.
• BBQ Areas: Outdoor cooking spaces for social gatherings.
• 24-Hour Security: Ensuring the safety of residents.
• Resident Parking: Secure parking options for residents.

In addition, the Discovery Bay Center downstairs has a bunch of shops, restaurants and bars, so you can go out just by going downstairs.