One-of-a-Kind Low Leverage (32.6% LTV) Hawaiian Residential First Mortgage Lending Opportunity

June 12, 2017

The Campbell Team at the Carlton Group, as exclusive advisor to Aina Le’a Inc., has been retained to arrange two-year bridge financing for the Phase 1 residential development of 1,100 acres on the Big Island of Hawaii located in the highly desirable Kohala Coast region where the island’s finest resorts are situated which include the Four Seasons Hualalai, Fairmont Orchid, Mauna Kea and Mauna Lani resorts. The Phase 1 development consists of 384 affordable three and four-bedroom townhomes, 48 luxury villas, and 70 single family lots. There are four buildings each containing eight townhomes which have already been constructed and one building which is partially completed. The expected sellout for the affordable component averages $365 per sf while the market rate condos are expected to sell at $531 per sf as shown below. Medical office and retail development opportunities are located near the entrance of the property.

The borrower is seeking $65.2 million of proceeds to consolidate $35.2 million of existing debt on the property and complete $12.5 million of required infrastructure remaining for Phase 1. This will allow the sponsor to start selling 40 of the completed condominiums and start moving forward with construction of the remaining units. Interest reserve, closing, and finance costs will be approximately $17.5 million. The loan will be paid down with proceeds from the condominium sales and lots sales from the single family home lots.

Given the considerable value placed on this irreplaceable master development, the first mortgage represents a highly conservative 32.6% loan-to-value.

We are looking for qualified lenders to provide us with indicative pricing for the first mortgage at the best available rates and terms.

If you are interested in learning more about this opportunity feel free to respond to this email or reach out to us directly using the contact information below.

Mahalo,

 

Michael Campbell Steven Weiss
Partner Managing Director
(212) 716-5611 (212) 716-5631
mjc@carltongroup.com sw@carltongroup.com

Website: www.carltongroup.com

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One-of-a-Kind Low Leverage (32.6% LTV) Hawaiian Residential First Mortgage Lending Opportunity