At a glance
- Commercial Observer reported the Morningstar Credit alert.
- The hotel at 2424 Kalākaua Avenue was in sale negotiations when the maturity default occurred, per special servicer commentary.
- The 2021 loan was sized against $36.7 million of annual revenue, but the property generated no more than $25.9 million in 2023, Morningstar Credit data shows.
The $302 million single-asset CMBS loan on the Hyatt Regency Waikiki Beach Resort & Spa has been sent to special servicing after the sponsor missed its final maturity payment earlier this month, per Morningstar Credit. Commercial Observer reported the Morningstar Credit alert. The loan, HONO 2021-LULU, is the remaining balance on a $450 million mortgage. Mirae Asset Global Investments used that mortgage to refinance the 1,230-key Honolulu resort in 2021.
The hotel at 2424 Kalākaua Avenue was in sale negotiations when the maturity default occurred, per special servicer commentary. Mirae, a South Korean asset manager, bought the property from Blackstone in September 2016 for $780 million. Bloomberg reported last year that Mirae expected to sell for as little as $650 million.
The 2021 loan was sized against $36.7 million of annual revenue, but the property generated no more than $25.9 million in 2023, Morningstar Credit data shows. That is a 29% shortfall from the underwriting figure.
Reported by the Real estate debt desk from Commercial Observer. Published . Corrections