Chicago, IL (January 7, 2020) – Pearlmark announced today that it closed on a $16.2 million mezzanine investment in December 2019 for the development of Niumalu Marketplace, located in Kailua-Kona, Hawaii. The project will contain 204,275 square feet of retail and commercial space, as well as 711 parking spaces, on 20 acres of fee simple land. The project is anchored by a 63,000 square foot Safeway grocery store with a 27,000 square foot gas pad representing 45% of the total square footage. The Sponsor, CREDE and two institutional equity capital partners, began construction on the site in October 2018 and are expected to complete the project in October 2020. The investment was originated by Pearlmark and made on behalf of Pearlmark Mezzanine Realty Partners IV, L.P. (“Mezz IV”). A senior construction loan was provided by Centennial Bank. George Smith Partners represented the borrower in securing the financing.
Bill Swackhamer, Managing Director of Pearlmark, arranged the transaction for Pearlmark. Mr. Swackhamer commented, “We view this project as an opportunity to invest in a well-located, high-quality grocery anchored development with experienced and well-capitalized sponsorship.”
Doug Lyons, Managing Principal and Head of Debt Investments for Pearlmark, further commented, “the combination of a dominant supermarket retailer in its trade area, a strategic fee simple site on the Big Island, and outstanding sponsorship is compelling.”
Pearlmark is a Chicago-based investment firm that targets domestic core and value-add real estate opportunities via commingled funds, separate accounts and joint venture arrangements. Since inception in 1996, Pearlmark has sponsored more than a dozen investment programs for institutional and high net worth investors and completed 544 real estate equity and debt transactions representing in excess of $13.4 billion in gross investment value. Pearlmark is dedicated to creating value for investors and offers a range of investment opportunities across the various property types (office, industrial, multifamily) in both local and national markets. For more information, please visit https://www.pearlmark.com.