George Smith Partners Secures $51.7 Million Senior Construction Financing, $16.2 Mezzanine Debt for Shopping Center in Kona, Hawaii

George Smith Partners Secures $51.7 Million Senior Construction Financing, $16.2 Mezzanine Debt for Shopping Center in Kona, Hawaii

The Davies Group at Los Angeles-based George Smith Partners, a leading commercial real estate capital markets advisor, arranged both a $51.7 million senior construction loan and $16.2 million in mezzanine debt for the ground-up development of a Safeway-anchored shopping center in Kona, Hawaii. Securing financing on behalf of the sponsor, CREDE (Commercial Real Estate Development Enterprises), the group skillfully navigated the unusual complexities of sourcing capital after construction had already begun.

CREDE is commercial real estate development and construction management company founded in 2001 with offices in Northern and Southern California, Dallas, Nashville, Phoenix and Salt Lake City. CREDE focuses on opportunistic developments across the United States and has developed or repositioned over 150 properties since 2001.

“To line up financing for CREDE, we highlighted the need for new retail development in Kona and, specifically, the anchor tenant’s commitment to relocate its store from an adjacent shopping center less than a half mile away,” said George Smith Partners’ Principal and Managing Director Malcolm Davies. “We identified two lenders who not only understood the value of the fee simple land ownership but also the high demand for new retail driven by a shortage in the market.”

Known as Niumalu Marketplace, the project is strategically located on a prominent 20-acre site along Queen Ka`ahumanu Highway – one of Kona’s most trafficked thoroughfares. Construction is underway on the highly anticipated 204,275-square-foot shopping center with completion expected by Q4 2020.

Davies, along with other group members, Senior Vice Presidents Zachary Streit and Evan Kinne; Vice Presidents Alexander Rossinsky and Rachael Lewis; and Assistant Vice Presidents Aiden Moran and Maxwell Shedlosky, facilitated the transaction. The group procured Centennial Bank for the construction financing portion and Pearlmark Real Estate Partners for the mezzanine debt.

“We took this across the finish line by emphasizing to capital sources the site’s fee simple status – a rare occurrence in Hawaii, where most land is leased from the State,” noted Kinne. “Considering the location and amenities, the shopping center will be well positioned for success.”

About George Smith Partners

Celebrating 25 years in business, George Smith Partners is a leading national provider of capital market advisory services to the commercial real estate industry. The firm specializes in arranging financing for commercial and multifamily properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity. The company has arranged more than $55 billion in financing since its inception. Additional information about George Smith Partners is available at www.GSPartners.com.