Need $15M construction loan for condo project!

8 Replies

My company is building over 100 condos in Hawaii. They are not luxury condos, but more geared toward the local population. We have purchased the land and have preliminary entitlements to build. We are looking for a loan of appoximately $14 - 16M which represents a 65% LTC. Non-recourse only. We are already in pretty serious discussions with some Hawaii banks and a few mainland banks, but I would like to see if there is anything else out there that is competitive.

My question was the silly one! :lol:

Actually it was a real question because I have heard from relatives that you don't get the opportunity to buy land in Hawaii... you only get to LEASE the land for 99 years. Not only that, but I had also heard that only native islanders can buy the land so that condo developers don't come in and overdevelop the island (no offense intended).

Again this is all hear-say, but this is what my relatives in Hawaii told me when I visited some years back.

In any case, as far as I can tell most of the natives to Hawaii have a pretty tough time making ends meet. Everything is more expensive there either because it has to be imported or simply because of tourism. I don't think low-cost condos are what you're after.

There are a lot of land leases done in Hawaii, but you can own the land fee simple. It's not just Hawaiians that can own the land either.

actually, we have a lot of support from the local community because there is a huge housing crunch. Their only housing options are ancient condos (that are simply converted hotel rooms) or high-end luxury units.

They are happy to stand behind brand new, reasonably priced condo units. Plus, 20% of the project will be given to the county as affordable units.

Wow, this is all news to me (and good news to boot)!

I invited one of my Hawaiian uncles to my wedding coming up in May. If he visits then I will talk to him about this and see what feedback he might have. FWIW he lives on the island of Oahu which is where most of my relatives live.

Hopefully you guys don't want to build around the old leper colony :wink:

I'm assuming you've figured out your financing for this project by now. If not, please drop me a line (or email).

Since you own the land, I've got an investor at 5-8% (3-7yr terms) and 3-4 points. Since this is a private source, there are no bank guidelines to follow, and there are ABSOLUTELY NO DUE DILIGENCE FEES (my favorite thing about this group;) . DD takes about 4 weeks, and funding another 2-4 weeks (not the fastest around, but very easy to deal w/).

If you're already moving foreward, then best of luck to you!

Originally posted by "Deyl":
My company is building over 100 condos in Hawaii. They are not luxury condos, but more geared toward the local population. We have purchased the land and have preliminary entitlements to build. We are looking for a loan of appoximately $14 - 16M which represents a 65% LTC. Non-recourse only. We are already in pretty serious discussions with some Hawaii banks and a few mainland banks, but I would like to see if there is anything else out there that is competitive.

Hello I have access to lenders that may be able to fund your project. Contact me.
Originally posted by "Deyl":
My company is building over 100 condos in Hawaii. They are not luxury condos, but more geared toward the local population. We have purchased the land and have preliminary entitlements to build. We are looking for a loan of appoximately $14 - 16M which represents a 65% LTC. Non-recourse only. We are already in pretty serious discussions with some Hawaii banks and a few mainland banks, but I would like to see if there is anything else out there that is competitive.

Hi,
Have you find a lender for your project?. If you are still looking for a lender, please contact me. I know 2 of my lenders will seriously look at your project for funding.
Regards,

Frank in Houston,TX
www.amerites.com