Sold · MLS 731542

Kahaluu Surf
Boutique & Lodge

A Resort-Zoned Compound Across from Kahaluʻu Bay

78-6649 Aliʻi Dr · Kailua-Kona, HI 96740

$4,450,000

Sold · Represented by Marco A. Silva · Off-Market Sale

Bedrooms
8
Bathrooms
4full4half
Parcels
3
Land
19,121sf
Built
1966
Zoning
V-1.25

About This Property

Across from
Kahaluʻu
Bay

The Kahaluu Surf Boutique and Kahaluu Surf Lodge share three contiguous resort-zoned parcels on Aliʻi Drive, directly across the road from Kahaluʻu Beach Park, one of the best-known snorkel and surf spots on the Kona coast.

The compound was put together and finished as a single property, with a consistent, surf-inspired design running through both buildings, and it operated as a mix of short-term vacation rental and long-term residential housing. It sold turnkey in June 2026, before it was ever publicly marketed.

The Boutique fronts Aliʻi Drive: a four-unit apartment building on a 4,348 square foot parcel, with covered lanais looking across the road toward the bay and ground-floor entries set behind planters and patio seating. Behind it, the Lodge sits on 10,125 square feet and holds a two-bedroom, two-bath main house upstairs, a one-bedroom, one-bath unit below, and a separate owner’s studio. A large deck with shade umbrellas and an open lawn give the whole compound a shared outdoor space.

Inside, the units were updated with shaker cabinetry, stone and butcher-block counters, open shelving, stainless appliances, in-unit washers, and ceiling fans throughout, in a light palette of white board-and-batten walls and pale floors.

The third parcel is a vacant 4,648 square foot lot reached by easement, suited to parking, a pool, or additional structures. With all three parcels in the V-1.25 Resort-Hotel District, the compound offers a combination of hospitality flexibility, income, and room to grow that is rare anywhere on Hawaiʻi Island.

Three parcels  ·  V-1.25 Resort-Hotel zoning  ·  Sold off market

The Portfolio

Three Parcels,
One Compound

Each parcel does a different job. The apartment building earns from the road frontage, the lodge holds the larger living spaces and the outdoor areas, and the vacant lot holds the upside. Owned together, they work as one property.

One

Kahaluu Surf Boutique

A four-unit apartment building on 4,348 square feet fronting Aliʻi Drive. Upper units open to covered lanais facing the bay; ground-floor units have their own entries with patio seating. Open-shelf kitchens with butcher-block counters and in-unit washers.

Two

Kahaluu Surf Lodge

On 10,125 square feet: a two-bedroom, two-bath main house upstairs with a herringbone-top kitchen island, a one-bedroom, one-bath unit below, and a separate owner’s studio. A large deck with shade umbrellas opens onto the lawn.

Three

Expansion Lot

A vacant 4,648 square foot parcel with easement access, suited to parking, a pool, or additional structures, and zoned V-1.25 Resort-Hotel like the other two.

Specifications

What Comes With It

Income & Zoning

  • Three contiguous parcels
  • V-1.25 Resort-Hotel District
  • Short-term and long-term rental history
  • Sold turnkey
  • Fee simple
  • No association fees
  • 19,121 square feet of land combined

Surf Boutique

  • Four-unit apartment building
  • Frontage on Aliʻi Drive
  • Covered lanais facing the bay
  • Open-shelf kitchens
  • Butcher-block counters
  • In-unit washers
  • Ground-floor patio entries

Surf Lodge

  • Two-bedroom, two-bath main house
  • Herringbone-top kitchen island
  • Stainless appliances
  • One-bedroom, one-bath unit below
  • Separate owner’s studio
  • Large deck with shade umbrellas
  • Open lawn

The Site

  • Across from Kahaluʻu Beach Park
  • Ocean and bay views
  • Vacant 4,648 sq ft expansion lot
  • Easement access to the rear parcel
  • Paved parking
  • Lava rock walls
  • Built 1966, hollow tile construction

The Upside

Room
to Grow

Most income properties on the island are what they are. This one came with a third parcel. The vacant lot behind the compound is reached by easement and carries the same Resort-Hotel zoning as the buildings, so it can take on parking, a pool, or new structures as the operation grows, subject to County approvals.

  • Vacant 4,648 sq ft parcel
  • Easement access
  • Parking, a pool, or additional structures
  • Resort-Hotel zoning across all three parcels

The Setting

Kahaluʻu

Kahaluʻu Bay sits along the southern stretch of Aliʻi Drive, just north of Keauhou. The shallow, reef-filled bay is sheltered by an ancient breakwater, which makes it one of the most popular snorkeling spots on the island, and green sea turtles are regular visitors along the shoreline. Surfers work the break at the outer edge of the reef.

For Buyers weighing Kona real estate as an investment, resort-zoned land this close to the water is scarce. V-1.25 zoning supports hospitality and vacation rental uses that most residential parcels on Hawaiʻi Island cannot, and the beach park across the road draws visitors all year.

  • DistrictNorth Kona
  • NeighborhoodKahaluʻu, Kailua-Kona
  • Land19,121 Sq Ft, 3 Parcels
  • ZoningV-1.25 Resort-Hotel
  • Year Built1966
  • MLS Number731542

Kailua-Kona, HI 96740

78-6649 Aliʻi Dr

Open in Maps

Questions

About This Property

The Kahaluu Surf Boutique and Kahaluu Surf Lodge, a multi-unit income compound on three contiguous resort-zoned parcels across from Kahaluʻu Beach Park in Kailua-Kona. It sold in June 2026 for $4,450,000 before it was publicly marketed, with Marco A. Silva representing the Buyer. The compound includes a four-unit apartment building fronting Aliʻi Drive, a lodge with a two-bedroom main house, a one-bedroom unit and an owner’s studio, and a vacant expansion lot, for eight bedrooms across 19,121 square feet of land.
V-1.25 is Hawaiʻi County’s Resort-Hotel District. It allows hotel and resort uses, including short-term vacation rentals, which gives an owner far more flexibility than the residential zoning that covers most of the island. Buyers considering resort-zoned property should confirm specific permitted uses, density, and County requirements with the Planning Department as part of due diligence.
Both. At the time of sale the property operated as a mix of short-term vacation rental and long-term residential housing. Buyers looking for a similar income property in Kona should confirm registration status and County requirements for each unit, and Marco can explain how to evaluate them.
The third parcel is a vacant 4,648 square foot lot reached by easement. It was marketed as suited to parking, a pool, or additional structures, subject to County approvals, and it shares the Resort-Hotel zoning of the other two parcels.
Kahaluʻu Beach Park is one of the most visited snorkel spots on Hawaiʻi Island, with a reef-sheltered bay, regular green sea turtle visits, and a surf break at the outer reef. Resort-zoned land this close to it is scarce, and the beach draws visitors year round regardless of any single operator.
Contact Marco A. Silva directly at 808.557.8921 or Marco@KonaLuxuryRealEstate.com. Marco is a Coldwell Banker Global Luxury specialist and REALM member representing Buyers and Sellers across Kailua-Kona, Keauhou, Holualoa, and the Kohala Coast, including properties that are not publicly marketed.

Sold by Marco

Resort-Zoned
on Aliʻi Drive

Properties like this rarely reach the open market, and this one sold before it did. If you are looking for an income property or resort-zoned land on the Kona coast, Marco would be glad to help you find the next one.

Marco A. Silva · R(B) · RB 20599 808.557.8921 Marco@KonaLuxuryRealEstate.com

Listing by: For Sale By Owner

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HIS data last updated at September 18, 2026, 12:00 PM HAST · Real Estate IDX Powered by iHomefinder