The land purchase for the latest project, on one of the last vacant beachfront parcels on Kauai's Coconut Coast, closed Feb. 22 with a $9 million loan from Canyon Capital. Coconut Plantation Holdings LLC acquired nearly 12 acres in Waipouli adjacent to all of the amenities of the towns of Kapa'a and Lihue. The undeveloped land is fully entitled for 195 condominium units.
Also on Kauai, Canyon provided $50 million toward the December 2004 acquisition by Kabara LLC of the 350-room Radisson Kauai Beach Resort. Kabara will seek to convert the hotel into a condominium hotel, with units likely going on sale during the first half of 2005.
On the Kona Coast of Hawaii, Canyon funded in March 2004 a $57 million construction and renovation loan to Koa Hotels LLC for the redevelopment of a shuttered hotel into the Sheraton Keauhou Bay Resort on 26 oceanfront acres in the town of Kailua-Kona. Formerly the Kona Surf Hotel, the new resort's grand opening is scheduled for April -- the first hotel to open on the Big Island in nearly 10 years.
"Canyon Capital's financing of three large resort projects in 11 months is a strong vote of confidence in Hawaii's tourism and real estate market," said Bobby Turner, Managing Partner of Canyon Capital Realty Advisors.
Added Canyon Principal Jonathan Roth, "Leading each of these projects are veteran developers, investors and construction consultants who have considerable expertise in the Hawaiian Islands."
Roderick O'Connor of Brickman Associates, an investor in all three of the resort projects, said Canyon Capital's expertise in financing real estate deals around the United States proved invaluable in these transactions.
"Canyon Capital Realty Advisors brings to a deal more than just the loan. Canyon is able to creatively structure transactions and navigate complex issues involved in these opportunities. In addition, the people and process at Canyon truly define relationship lending. And Canyon works very quickly," O'Connor said.
Canyon Capital Realty Advisors LLC and its affiliate Canyon Capital Advisors LLC are registered investment advisors and money management firms based in Beverly Hills, Calif., with more than $8.5 billion of capital under management. Canyon's real estate activities focus on providing debt and equity capital to real estate owners, operators, developers, corporations and entrepreneurs, enabling them to participate in transactions that would have traditionally eluded them due to capital constraints.
Canyon has built its reputation on creative underwriting and structuring, reliable commitments, overall professionalism and timely closings. Canyon's real estate funds include the Canyon Value Mortgage Fund and the Canyon-Johnson Urban Fund, a joint venture with Earvin "Magic" Johnson focused on the development of retail and residential properties in densely populated, ethnically diverse communities.