HONOLULU — Walker & Dunlop has structured a $145 million first trust mortgage for Moanalua Hillside Apartments in Honolulu. Allan Edelson, managing director, led Walker & Dunlop’s team, who arranged the financing using a Fannie Mae, adjustable-rate mortgage.
After repaying the existing first mortgage, the financing provided net proceeds of approximately $30 million, which the borrower intends to use for interior renovations and construction of 496 additional apartments.
“The borrower was interested in favorable prepayment options. With our team’s expertise in multifamily financing, we were able to offer a unique prepayment feature of a one-year lockout period, followed by 1 percent for 12 months, 0.5 percent for the following six months, then open at par,” says Edelson.
Originally built in 1968, Moanalua Hillside Apartments includes 700 units. Renovated in 2004, the garden-style apartment complex features one- and two-bedroom apartments.
Moanalua Hillside Apartments consists of 25 buildings spread throughout a nearly 28-acre site. Amenities include gated access, kitchens with breakfast bars, sundecks, ocean views, two swimming pools, volleyball courts and a brand new fitness center. Pearl Harbor, Tripler Army Medical Center and downtown Honolulu are located only a few miles away from the complex.
With a regulatory agreement in place from the original issuance of the bonds in October 2000, the property offers affordable housing options. Twenty percent of the units are set-aside for low-income tenants, and 30 percent for moderate-income tenants.
— Danielle Everson