Civitas Capital Group, a Dallas-based alternative investment manager, has announced it has closed a USD 150 million senior loan to finance the construction of a 210-room Curio Collection by Hilton hotel on the island of Kauai, Hawaii. Civitas is providing the senior loan to affiliates of Silverwest Hotels and its institutional equity partners.
In this challenging real estate debt capital markets environment, Civitas' bridge lending platform continues to provide borrowers access to capital for acquisition, refinance, and construction opportunities where banks, life insurance companies, the conduit market, and other traditional sources of commercial real estate financing may be unavailable.
Situated on approximately 8.5 acres within a master‐planned, 450‐acre oceanfront luxury resort community, the property will include a three‐meal restaurant, the pro shop for the 18‐hole Jack Nicklaus Ocean Course at Hokuala, an outdoor pool, 27,000 square feet of interior and outdoor meeting and event space, and a fitness centre. This will be Hilton's second branded hotel on the island.
"With the project's institutional capital backing, experienced sponsorship, and high barrier to entry location, this financing opportunity matches the strategic vision of our bridge lending program," said Austin Khan, Managing Director of Investments for Civitas.
"We continue to focus on the growth of our platform with over half a billion of closed or currently in-process transactions over the past 12 months."
The resort is in Lihue on the island of Kauai, the oldest of the main islands and a tropical vacation gem known for its seclusion and lush landscapes.
"We strive to be great lending partners to the hospitality industry," said Marisa Lizak, Civitas's Managing Director of Investments.
"As both an equity investor in hotels and a debt capital provider to the market, we are able to understand the unique challenges of the asset class and structure financing solutions that fit the needs of institutional hotel owners."
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