HFF Scores $80M Refinance for Maui Shopping Center

The 110,800-square-foot Whalers Village shopping and entertainment center captures an estimated one of every four dollars spent on the island.

February 22, 2011
By Barbra Murray, Contributing Editor

With Holliday Fenoglio Fowler at the helm, the 110,800-square-foot Whalers Village shopping and entertainment center in Maui, Hawaii, has just been refinanced to the tune of $80 million. The real estate services firm facilitated the loan on behalf of borrower WV Sub L.L.C., an entity controlled by shopping center REIT General Growth Properties Inc.

Whalers Village is no risky investment. The 41-year-old property is in tip-top shape, courtesy of several renovations and a 1996 expansion, and boasts a highly coveted location along Kaanapali Beach and within walking distance of a large group of customers; occupants of 5,000 hotel rooms, timeshare residences and condominiums are practically just a stone’s throw away. The shopping center is presently 98 percent leased to a list of tenants that includes Coach and Louis Vuitton, as well as Whalers Village Museum and Theater.

HFF notes that Whalers Village captures approximately one of every four retail dollars shelled out on Maui, garnering the asset a first-place position in market share and leaving the retail sector in its dust. The average vacancy rate for retail centers in Maui is 7.7 percent, according to a fourth quarter report by commercial real estate services firm CB Richard Ellis.

Given the quality of Whalers Village, its nearly full tenant roster and prime beachfront position, there was not much for lenders not to like. Goldman Sachs & Co. took the bait and provided the borrower with a 10-year fixed-rate loan to refinance an existing debt on the property.