HONOLULU—Financing totaling $100.65 million has been secured for the development of 7000 Hawaii Kai. The 269-unit class A multihousing complex is located southeast of Honolulu, 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,” says Cole.
Cole tells GlobeSt.com that “The community of Hawaii Kai deserves a thoughtful development, which will provide not only housing, but a dedicated park that will be a beautiful public amenity for the community. This really is a victory for the community of Hawaii Kai after so many years of having the site sit idle. It's great to see development groups such as Hanwha and Avalon take the responsibility as corporate citizens by finally seeing this through and creating a win/win outcome.”
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,” adds Holderman.
Avalon Development Co. 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.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
