SAN DIEGO, CA – HFF announced today that it has secured financing totaling $100.65 million for the development of 7000 Hawaii Kai, a 269-unit, Class A multi-housing complex southeast of Honolulu, Hawaii, in the community of Hawaii Kai.
HFF worked exclusively on behalf of a subsidiary of Hanwha America Development LLC, the US real estate arm of Hanwha Engineering Construction Corp, Korea, and its development partner, Avalon Development, to secure construction financing totaling $100.65 million by structuring a first lien loan in conjunction with a mezzanine investor. HFF placed a $67.25 million first lien loan with Bank of the Ozarks and also procured $33.4 million in mezzanine financing through iStar Financial, Inc. to complete the multi-housing development.
Due for completion in summer 2016, 7000 Hawaii Kai will be situated on one of the last remaining residential development sites in the submarket, a 3.8-acre site at the intersection of Keahole Street and Hawaii Kai Drive overlooking the Hawaii Kai Marina in East Honolulu. The two, 10-story buildings will be comprised of a mix of one-, two- and three-bedroom units. The property will feature community amenities, including a swimming pool, fitness center with cardio machines and yoga studio, club room with full kitchen, library, meeting room, media/performance room and business center.
The HFF debt placement team representing the borrower was led by senior managing director Aldon Cole and director Zack Holderman.
“7000 Hawaii Kai is being developed at a time when market-rate and affordable housing in Hawaii is increasingly hard to come by given high land prices and a general shortage of housing. As a result, we anticipate strong demand for this product, which is rarely delivered in Hawaii,” said Cole.
“Through the dedication and commitment of a qualified local development team and capital partner, 7000 Hawaii Kai will provide much needed housing for this highly desirable submarket,” added Holderman.
Avalon Development Company is a full-service real estate development, consulting and sales company. Based in downtown Honolulu, Avalon has expertise in all types of real estate projects and has developed a wide network of government and community contacts, which play a key role in Avalon's success and the success of its clients.
HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 23 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit hfflp.com or follow HFF on Twitter @HFF.