An extensive examination of recent commercial lending activities in Honolulu, HI, unveils a robust landscape characterized by the successful closure of 367 deals within the preceding 90 days. The market exhibits a rich array of commercial deals, with concentrations in General Commercial (23 deals), Hotel (19 deals), Residential Condo (194 deals), and various other property types, including Multifamily, Industrial, and Residential – Duplex/Triplex/Quadplex.
The average loan amount funded in Honolulu stands at a notable $2.2 million, showcasing the diversity of transactions in this dynamic market. The highest loan funded during this period reached an impressive $450 million, with Wells Fargo facilitating the financing for a General Commercial property.
In Honolulu, a noteworthy trend is the preference for local lenders, including First Hawaiian Bank, Bank of Hawaii, Hawaii State Federal Credit Union, Central Pacific Bank, Territorial Savings Bank, Finance Factors, and Hawaii National Bank. This local emphasis allows lenders to offer competitive rates, with a 5-year fixed product rate starting at 1 million Term SOFR + 250-300 basis points.
Origination fees in the market vary, ranging from 0.5% to 0.75%, while debt funds typically charge 1% or more. This localized approach contributes to the competitive landscape, providing favorable terms for borrowers.
Nationwide leaders actively participating in Honolulu’s commercial lending market include Acra Lending (Citadel Servicing Corporation), Bank of America, Conventus, Navy Federal Credit Union, Wells Fargo, and Academy Mortgage Corporation. Their prominent role underscores the city’s dynamic and professional commercial real estate sector, with a focus on diverse property types and competitive financing terms.
