|GROSS LOAN AMOUNT||$13,940,000|
|LOAN TO VALUE||67.0%|
$13,940,000 FOR DISCOUNTED PAYOFF
OF KULANAA’O APARTMENTS IN MAUI, HI
The borrower sought financing to facilitate a discounted payoff for Kulanaa’o Apartments, a Class ‘A’ garden-style, 112-unit multifamily complex located on Vevau Street in the heart of Kahului, Maui, HI. Developed in 2007 as a student apartment housing project at a cost of $33,000,000. All units are designed as self-contained apartments. In June 2013, Maui County approved the removal of the “student housing” zoning restriction, to unlock higher value based on significant reductions in operating expenses. The property is currently 83% leased with robust leasing velocity of available units. Annualized August 2013 in-place NOI is $770,000 trending up. The borrower believes he can lease the property to 95% in three to six months. According to Cushman & Wakefield Valuation, market occupancy for the subject trade area is 95%. Once stabilized, the property should generate an annualized NOI of $1,053,000, equating to an estimated stabilized value of $20,750,000 ($185,000/unit, 5.1% cap rate). New borrower cash to close loan: $825,000. As an added measure of security, an institutional real estate investor has placed an additional $2,460,000 loan, subordinated to our $13,940,000.