Ramsfield Hospitality Finance has closed two loans totaling $26.75 million for the Kauai Coconut Beach Resort in Hawaii. A $19.5 million primary mortgage and a $7.25 million mezzanine loan will replace the existing mortgage of owner Presidio Hotel Group and finance the final stages of the property’s renovation into a 312-room Courtyard by Marriott resort. Under its agreement with Marriott, PHG will remain the owner/operator.
The first mortgage matures in four years. RHF plans to sell a senior participation interest at a later date. The interest-only mezzanine financing carries a floating interest rate above 30-day LIBOR.
"This transaction represents several ‘firsts’ for our firm — the first time we’ve provided first mortgage financing, as we typically handle mezzanine loans and the first Hawaiian property the company has financed," says RHF President Richard Mandel. "We’re extremely bullish on the Hawaiian market, due to its tremendous draw as a key hospitality and tourism destination."