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Bridge Loan – Koloa, HI

An investor needed more time to effectively market a luxury home on the Hawaiian island of Kauai. Lima One’s bridge loan was the right solution.

By the Numbers:

$4,636,338

Loan Amount

80%

Loan to Cost Leverage

$8.26M

Current Appraised Value

56%

Loan to Value Leverage

$9.75M

List Price

The Opportunity

Lima One Capital had financed the construction loan for this recently completed 5,000-square-foot home on the island of Kauai in Hawaii. The luxurious home, which featured an 800-square-foot Casita and an in-ground pool, is located in the golf course community of Kukui’ula. The project went smoothly, and the builder was ready to list the property for $9.75 million, well above the appraised value.

Due to the nature of the targeted buyer for this type of property, the builder knew that the sale might take a few months. So, the builder requested to refinance out of the original construction loan.

The Solution

Lima One did an internal refinance into an interest-only bridge loan which reduced the interest rate by 2.45%, provided funds to pay off the construction loan, and provided cash out for future projects.

The bridge loan gives the builder time to market and sell this luxury project for the appropriate price, allowing him to maximize profit on the time and expertise he brought to this beautiful home.