30-year $30 million refinancing for 2-property hotel portfolio in Honolulu, Hawaii, arranged by HFF
LOS ANGELES, CA – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged a long-term $30 million refinancing for a two-property, full-service hotel portfolio totaling 581 rooms in Honolulu, Hawaii.
HFF worked on behalf of the borrower, TEG Hotels, LLC, to place the 30-year, fixed-rate loan that has a 30-year amortization with a major U.S. insurance company. Loan proceeds are being used to pay off an existing loan and fund capital improvements. The assets are on a ground lease with 30.5 years remaining.
The portfolio consists of the 307-room Airport Honolulu Hotel at 3401 North Nimitz Highway and the 274-room Best Western The Plaza Hotel at 3253 North Nimitz Highway. The Northern Honolulu hotels are situated at the entrance to Honolulu International Airport, the main point of entry for Oahu’s five million annual visitors. The hotels’ surrounding area will have three stops on the Honolulu Rail Transit Project, which is scheduled for completion in 2017 and will consist of 21 stations that connect West Oahu to the airport and continue into downtown Honolulu. The project will give guests rail access to major tourist destinations, including Pearl Harbor Naval Base and Lagoon Drive. Waikiki Beach is six miles from the hotels, and Diamond Head is less than 11 miles away. The Airport Honolulu Hotel has two four-story buildings and features a picnic area, 3,401 square feet of meeting space and the full-service Willoughby’s Restaurant. With one 12-story tower and three two-story buildings, Best Western The Plaza Hotel has 3,024 square feet of meeting space and the full-service Plaza Café. Both hotels have fitness centers, business centers and outdoor pools with sun decks.
The HFF debt placement team representing the borrower was led by director Bill Fishel, based in HFF’s Los Angeles office.
“Institutional lenders and investors are squarely focused on increasing their allocations to Hawaii,” Fishel said. “The lender was exceptional to work with on this transaction, and we were thrilled to secure a 30-year financing given the borrower’s long-term ownership plan and today’s historically-low interest-rate environment.”
About TEG Hotels, LLC
TEG Hotels, LLC (TEG) is a privately owned, hospitality focused real estate company founded by David Elmore.
HFF and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (NYSE: HF). HFF operates out of 22 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.