Narrative
Full Description
Project narrative
On October 30, 2015, the New York Branch of Deutsche Bank AG entered into a $460,000,000 USD loan agreement with AMX Partners LLC — a Delaware-incorporated special purpose vehicle (SPV) jointly owned by Chicago-based commercial real estate firm General Growth Properties, Inc., Hawaii-focused privately-owned real estate firm Kobayashi Group, LLC, and Hawaii-based family-owned real estate firm MacNaughton Inc. — for the Park Lane Ala Moana Project. This loan carried a maturity period of three years and an one-year extension option and an interest rate based on one-month LIBOR. This loan was secured by (i.e. collateralized against) a mortgage on Park Lane Ala Moana, an assignment of condominium developer's rights, and an assignment of leases, rents, and revenues all dated October 30, 2015 by the AMX Partners, LLC to Deutsche Bank. Then, in early November 2015, Deutsche Bank began a syndication process for the debt, appointing the Industrial and Commercial Bank of China (ICBC) as a co-lead bank, with Deutsche Bank remaining as administrative agent. The loan had not closed as of November 13, 2015 but was expected to close "within a couple of week." The media reported five lenders expected to participate in the loan — American Savings Bank of Honolulu, Bank of Hawaii, CIT Real Estate Finance, MidFirst Bank, and U.S. Bank — for a total of seven lenders. The proceeds were to be used by the borrower to finance the on-going construction of the $1 billion USD Park Lane Ala Moana Project, a 215-unit luxury condominium development near the oceanfront at 1388 Ala Moana Boulevard at Piikoi Street, about two miles from downtown Honolulu, Hawaii, adjacent to the mall Ala Moana Center and across the street from Ala Moana Beach Park. The development consisted of seven six-story buildings with a view of the Pacific Ocean, with the condos featuring 10-foot ceilings, tropical gardens, private pools or spas, and private garages. Solomon Cordwell Buenz and Ben Woo Architects served as architects. Philpotts Interiors and Diaz-Azcuy Design Associates served as interior design. Vita Planning & Landscape Architecture served as landscape architect. Group Builders Inc. served as cold-formed steel specialty contractor. Magnusson Klemencic Associates served as engineer of record for structural work. CEMCO served as cold-formed steel specialty engineer. The first phase was due for completion by the end of 2016. The second phase was due for completion by the end of 2017. On July 9, 2014, construction commenced. The first units opened in April 2017. The project was completed in October 2017.
Staff comments
1. AidData assumes the seven lenders reported by the media contributed to the loan when syndication closed. Even if they did not, as ICBC joined as co-lead bank, ICBC had in fact committed to contribute to the loan, so the participation of other lenders only impacts AidData's estimate of ICBC's contribution. The individual contributions of the seven lenders to this $460 million USD syndicated loan are unknown. Therefore, for the time being, to estimate ICBC's contribution, AidData has assumed that each lender contributed equally ($65,714,285.7143 USD) to the loan syndicate.