May 21, 2019
Beverly Hills, CA-based Sonnenblick-Eichner Company arranged $27 million of first mortgage leasehold financing for the Lahaina Gateway, a 136,566-square-foot community shopping center on the island of Maui, HI.
Proceeds of the non-recourse financing allowed the borrower to repatriate equity it had in the property and provide future funding for tenant improvements, leasing commissions and capital expenditures associated with the lease-up and repositioning of the shopping center.
The three-year, fixed-rate, interim loan, with two one-year extension options, allows the borrower to stabilize the property, while providing for flexible prepayment options for a future recapitalization. The financing was provided by a domestic life insurance company who felt comfortable with the borrower’s ability to reposition the asset with new anchor tenants, resulting in a stabilized NOI that provides significant coverage on the loan.
The property is located on the Honoapi’ilani Highway (H-30), one mile north of historic downtown Lahaina and seven miles south of the Ka’anapali Resort.
For comments, questions or concerns, please contact Dennis Kaiser