This multi-story commercial property located in the heart of Honolulu needed some freshening up and when a long time tenant moved out, the opportunity was right for a commercial renovation loan from Seattle Funding Group. This property is well located on the main arterial into the prime tourist area of Waikiki and across the street from the Ala Wai Golf Course. With several new tenants already signing leases for the renovated space at updated and substantially higher current market rates, the borrowers income will improve dramatically. Traditional bank take out financing should be easy once the renovations are complete and the new tenants move in.
A renovation loan like this one can be difficult to finance through traditional methods as an appropriate income stream is yet to be established. SFG’s hard money commercial lending program is a great way for property owners to renovate their property and increase their profits allowing them to refinance with a bank after being leased up. Often speed is also a factor as property owners are losing money every month they are not receiving rents, this is where the speed of SFG benefits the borrower allowing them to close quickly, start and finish renovations and lease up the building.
SFG would like to thank Jackson Nakasone of Newmark Grubb and Craig Nakamura of Commercial Properties Honolulu for their commercial market insights and updates.