News Releases
CANYON CAPITAL PROVIDES $100 MILLION TO FINANCE THREE SIGNIFICANT PROJECTS IN HAWAII
Projects ranging from retail to residential and resort deals represent Canyon's ongoing and varied investment in the Hawaiian Islands
BEVERLY HILLS, Calif. (Sept. 14, 2006) - Three prominent retail, residential and resort projects in Hawaii have been financed this year alone with $100 million from Canyon Capital Realty Advisors, a respected lender and real estate investor based in California. The financings further strengthen Canyon's position as a preferred capital source for time-sensitive and complex real estate transactions in Hawaii.
Most recently, in July 2006, Canyon funded an $18.0 million senior bridge loan for the acquisition of a retail development site in Waikiki. As Honolulu's premier "urban retail" market, Waikiki is one of the foremost travel, resort and shopping destinations in the world. The area is currently reinventing itself with a number of large-scale hospitality and retail redevelopment projects.
In March 2006, Canyon funded a $41.0 million senior bridge loan for the acquisition of a 2,021 acre land site in Kapa'a on the Island of Kauai. The site was acquired by Plantation Partners Kauai, LLC, a Kauai-based development company headed by Andy Friend. The property, which is distinguished by wide open grassy pastures, dramatic mountain and ocean views and multiple valleys covered with dense vegetation, is currently in the planning stages for development as a 190-lot agricultural community. Upon completion of development, over 70% of the site's land area will be deed restricted by easements for open space and agricultural uses including tea and taro farming. Plantation Partners Kauai, LLC will also construct 100 affordable housing lots on the property.
Lastly, in January 2006, Canyon funded a $40.5 million debtor-in-possession loan to well-known Hawaii hotelier Andre S. Tatibouet, which has facilitated Tatibouet's efforts to emerge from personal bankruptcy and re-establish his hotel business in the islands.
The loan is secured by the 247-room Coral Reef Hotel in Waikiki Beach and an 18,000 square foot home owned by Tatibouet in the Diamond Head area of Honolulu. The loan repaid all of hotel's secured creditors and funded $7.0 million for the renovation of the hotel. The hotel renovation, which commenced in May, includes upgrading the hotel's public spaces, all of the guest rooms and may include the construction of a fitness center, business center/conference facility and small spa on the second floor of the hotel. To date, nine of the hotel's fourteen floors have been ompletely renovated and are available to guests. In addition, the hotel has been repositioned as the Aqua Waikiki Wave and is now managed by Aqua Resorts. The hotel benefits from its close proximity to Waikiki Beach, the Waikiki Beach Walk and the International Marketplace which is slated for its first revitalization in three decades.
"Canyon Capital is pleased to finance not one, but three, exceptional projects in Hawaii in 2006," said Bobby Turner, Managing Partner of Canyon Capital. "We have a longstanding history in the Hawaiian Islands and believe not only in the strength of the tourism, retail and real estate markets there, but also in the expertise of the development teams associated with each project."
"Canyon has the ability to creatively structure transactions and navigate difficult situations, and do so both quickly and professionally," said Andy Friend, one of the developers of the Kauai land site.
"I am greatly appreciative of the efforts of the Canyon team" said Tatibouet, founder of Aston Hotels & Resorts, a hotel management company in the Hawaiian Islands. "Many lenders would have been unable to close this financing because of the complications involved in the bankruptcy process, but Canyon stood by me every step of the way. They demonstrated professionalism, determination and business acumen while always being sensitive to my personal situation."
Added Canyon Principal Jonathan Roth, "As a longtime provider of capital to projects in Hawaii, Canyon is intimately familiar with the customs and practices of doing business here, which enables us to move quickly and efficiently through complicated transactions."
