Equity Cash Out Loan for Residential Zoned Land in Lahaina and Hana, Maui

Myers Capital Hawaii—a residential and commercial mortgage banking company and direct private lender—partnered with its affiliate, Koa Mortgage Fund, to fund a $600,000 first-lien cash-out bridge loan secured by two free-and-clear land parcels located in Lahaina and Hana on the island of Maui. Koa Mortgage Fund, a pooled private mortgage debt fund, funded the loan at a conservative 46.6% loan-to-value based on a combined $1,285,000 appraised value.

The borrower, an experienced Maui-based real estate investor and developer, required additional capital to complete a boutique hotel project. By cross-collateralizing both land parcels, they were able to unlock equity to purchase furnishings and complete final improvements—bringing the project across the finish line without selling assets or disrupting existing holdings.

The 9-month, interest-only bridge loan was funded in March at a fixed rate of 14%. The borrower’s exit strategy is to refinance into long-term financing upon stabilization of the project.