Bridge Loan for Condotel Purchase in Waikiki, Hawaii

Myers Capital Hawaii, a mortgage banking company and direct private lender, collaborated with its affiliate, Koa Mortgage Fund, to fund a $150,000 first-lien position bridge loan for the acquisition of a condotel unit in the Waikiki Beach neighborhood of Honolulu, HI. We financed 51.7% of the $290,000 purchase price, while the Borrower contributed $140,000 cash at closing. A broker referred the Borrower to us after they were denied by another lender. We were able to provide a creative financing solution, saving this transaction from falling through at the 11th hour. The condotel unit was acquired as a replacement property in a 1031 exchange transaction. The Borrower had good credit and planned to make improvements to the kitchen and other areas of the unit. They will exit our bridge loan by refinancing it into a long-term, fixed-rate loan. The subject property was in fair condition and vacant at closing. The loan’s interest rate was set at 12.5%, and the broker earned a $3,695 commission. The loan term was set at 6 months. This purchase bridge loan was funded in July 2024.