CPB TO REPLACE LEHMAN BROS. AS PARTNERS ON RITZ-CARLTON RESIDENCES

KAPAULA, HAWAII — Honolulu-based Central Pacific Bank (CPB), under an agreement worked out among the lenders, is slated to replace Lehman Brothers Holdings as the administrative agent overseeing construction loans for Maui Land & Pineapple’s Ritz-Carlton Residences at Kapalua Bay in Kapalua. The New York bankruptcy court has scheduled a hearing at the end of January to approve modifying the loan and put CPB in charge of administering $120.1 million for the nearly-complete luxury resort condominium project. CPB, Landesbank Baden-Wurttemberg and Deutsche Hypothekenbank will lend $55 million; Lehman will lend $35 million; $20.1 million is in existing commitments from the three banks and $10 million will come from the partners of Kapalua Bay Holdings – Maui Land & Pineapple, Marriott International and Exclusive Resorts. The Ritz-Carlton Club and Residences will feature 84 three- and four-bedroom whole-ownership Ritz-Carlton Residences in four buildings, and two buildings containing 62 two- and three-bedroom fractional Ritz-Carlton Club units, which will have 12 owners each.