Dealmaker: Sonnenblick-Eichner Arranges $27M Bridge Loan for Hawaii Shopping Center

Sonnenblick-Eichner Co., Beverly Hills, Calif., arranged $27 million to refinance Lahaina Gateway, a 136,500-square-foot community shopping center on Maui, Hawaii.

The non-recourse bridge financing allowed the borrower to repatriate equity it had in the property and provided future funding for tenant improvements, leasing commissions and capital expenditures associated with repositioning the shopping center. The three-year loan included two one-year extension options.

“We were able to identify a life insurance company to provide a fixed-rate financing option that allowed our client to realize invested capital they had in the property as well as fund additional dollars for the repositioning of the asset,” said Sonnenblick-Eichner Company Principal David Sonnenblick.

Current Lahaina Gateway tenants include Foodland Farms and Footlocker. Ross Dress for Less and Ace Hardware recently signed new leases. The property is on the Honoapi’ilani Highway one mile north of downtown Lahaina.

The new loan included flexible prepayment options to allow a possible future recapitalization. The financing was provided by a domestic life insurance company that felt comfortable with the borrower’s ability to reposition the asset with new anchor tenants, resulting in a stabilized net operating income that provides significant coverage on the loan, Sonnenblick-Eichner Principal Patrick Brown said.