HFF announces $105M financing for Class A multi-housing property in Honolulu area
SAN DIEGO, CA – September 20, 2017 – Holliday Fenoglio Fowler, L.P. (HFF) announces $105 million financing for 7000 Hawaii Kai Drive, a 270-unit, Class A multi-housing property located in the southeastern part of Honolulu, Hawaii, in the seaside community of Hawaii Kai.
Working on behalf of the developer, Avalon Group, the HFF team placed the loan with an affiliate of KKR Real Estate Finance Trust Inc. (NYSE: KREF). Loan proceeds were used to retire the senior and mezzanine construction financing, which HFF arranged in 2014.
7000 Hawaii Kai (7000hawaiikaidrive.com) is situated on 3.8 acres at the intersection of Keahole Street and Hawaii Kai Drive overlooking the Hawaii Kai Marina in East Honolulu. The two, 10-story buildings comprise 216 market-rate studio through four-bedroom units and 54 affordable units, which can be locked-off in various configurations utilizing a unique, flexible design that expands into a maximum of 415 units, accommodating a wide variety of tenant demands. Completed in summer 2016, property amenities include a swimming pool, picnic/barbecue area, fitness center with cardio machines and yoga studio, music/meeting room, movie theatre/performance room, business center, dog wash, lush landscaping and unobstructed ocean views.
HFF’s debt placement team included senior managing director Aldon Cole and senior associate Olga Walsh.
“The project attracted very favorable institutional financing alternatives given the lack of new, affordable for-rent alternatives in the market,” Cole said. “KREF recognized this early on and differentiated itself from the market by providing an excellent financing solution for Avalon and its investment partner.”
About Avalon Group
Avalon Group is a multifaceted and vertically integrated real estate business that owns and manages a $300 million portfolio of properties across Hawaii in partnership with multinational companies and investment firms in focused on real estate. Avalon provides a full range of value-enhancing services, including leasing, investment, construction management, project management, asset management and property management. For more information, visit www.avalonhi.com.
About KKR Real Estate Finance Trust Inc.
KKR Real Estate Finance Trust Inc. (NYSE:KREF) is a real estate investment trust that primarily originates or acquires senior loans collateralized by institutional-quality commercial real estate assets that are owned and operated by experienced and well capitalized sponsors and located in liquid markets with strong underlying fundamentals. The company's target assets also include mezzanine loans, preferred equity and other debt-oriented instruments with these characteristics. The company is externally managed and advised by KKR Real Estate Finance Manager LLC, a registered investment adviser and a subsidiary of KKR & Co. L.P., a leading global alternative investment firm with a 40-year history of leadership, innovation and investment excellence and approximately $148.5 billion of assets under management as of June 30, 2017. Additional information can be found on the company’s website at www.kkrreit.com.
HFF and its affiliates operate out of 24 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform including debt placement, investment sales, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. Holliday Fenoglio Fowler, L.P., HFF Real Estate Limited (collectively, “HFF”), HFF Securities L.P. and HFF Securities Limited (collectively, “HFFS”) are owned by HFF, Inc. (NYSE: HF). For more information please visit hfflp.com or follow HFF on Twitter @HFF.
HFF Senior Managing Director
HFF Public Relations Specialist