Silverstein Capital Partners has closed on one of the year’s largest loans to date with a $528 million construction loan for a 972-unit residential development in Honolulu, Hawaii.
The New York-based real estate lending platform of Silverstein Properties outlined the funding plans on April 25 for The Park on Ke’eaumoku. The project is being developed by Nan Shin, one of the state’s largest construction companies.
Silverstein joins a small group of lenders that have originated $100 million-plus construction loans for multifamily asset development during the year, including Bank OZK and Bank of America, according to Real Estate Capital USA lending data.
The creation of more residential units will be a boost for the housing stock in Hawaii, which has encountered similar supply problems to other US markets.
“This will advance our vision to address Hawaii’s demand for housing and provide homes for Hawaii residents to own,” said Nan Chul Shin, owner and developer of the project.
Michael May, president of Silverstein Capital Partners, said the New York-based firm believes Honolulu remains strong for high quality mixed-use projects with great sponsorship.
The Park on Ke’eaumoku will feature 826 market-rate condominium units, 146 affordable units and 88,000 square feet of commercial space upon its expected completion in 2025. Construction on the project started in the summer of 2022.
Much of Honolulu’s debt focus during recent quarters has revolved around the Ala Moana center after Brookfield Retail Group refinanced a pair of commercial mortgage-backed securities loans totaling $1.9 billion in April 2022. The refinancing was a bright spot for the retail sector at the time, but served more as confirmation of the Hawaii retail center’s and neighborhood’s viability.