The oceanfront Kahala Beach Apartments — once shorthand for mid‑century Kahala glamour — are suddenly trading for eyebrow‑raising sums, including at least one two‑bedroom that sold for $45,000. The bargain‑bin prices come with a catch: the complex sits on a ground lease that ends in July 2027. Between steep monthly lease charges and no guarantee of fee simple title after the lease runs out, buyers and owners are rethinking what that beachfront address is worth.
As first reported by Pacific Business News, the wave of low‑price closings has put the property — and the countdown — back in the spotlight. The Business Journals’ reporting pointed to specific MLS sales and how the looming deadline is reshaping decisions for current owners and would‑be buyers.
Record lows hitting the MLS
MLS snapshots offer a clear data point: a roughly 1,258‑square‑foot, two‑bedroom unit closed for $45,000 on August 4, 2025, according to listing history archived by Homes.com. That sale — along with similar low‑figure closings in recent months — helps explain why listings that once commanded six figures are now being pitched at a fraction of typical market norms.
Not every deal is dirt‑cheap
Prices still vary. A larger top‑floor condo in the same complex sold in July 2025 for roughly $120,000, per local MLS records shown on Coldwell Banker. That spread reflects differences in size, condition and — crucially — how willing a buyer is to own for only a short stretch before the lease ends.
The lease is the driver
The crux is legal: the 60‑year ground lease for Kahala Beach Apartments expires on July 15, 2027, and the land is owned by Kamehameha Schools. As noted by Hawaii Business, the trust has said the property will “return to KS in July 2027 at the expiration of the lease,” and that it is coordinating with condo owners on transition planning.
The monthly math
Listings and public records make the carrying costs plain: ground rent plus HOA and maintenance can push monthly outlays into the thousands, dulling the shine of an oceanfront address. One recent MLS entry itemizes monthly lease rent and maintenance that shoppers have to factor in; see the example on Compass.
When the clock hits zero
When a ground lease ends, the landowner typically regains control of the land and may also take ownership of buildings and improvements, which can leave individual owners with limited options unless a new agreement emerges. Local reporting has tracked owners’ concerns and the association’s earlier bids to negotiate a purchase or extensions, and community observers say outcomes ranging from short extensions to redevelopment are on the table. For a local roundup of the timeline and reactions, see Hawaii Free Press…