Kona Kai Marina

Transaction description

Michael Thorp and Ari Zeen of PSRS arranged the $52 million refinance of Kona Kai Marina in San Diego, California. Kona Kai Marina comprises 535 slips covering over 27 acres of waterfront and accommodates 30’ vessels to 250’ Mega Yachts. The marina features floating concrete docks, secure dock boxes, fiber optics, telephone service, secure card-controlled access gates, marina tenant gated parking, and onshore amenities like bathrooms with showers, a laundry room, storage lockers, and a convenience store. Financed with a life insurance company, PSRS provided its borrower a non-recourse loan, with a 5+1+1-year, interest-only term. The recapitalization of the Kona Kai Resort and Marina allowed the sponsor to fully encumber the marina enabling the resort to be free and clear of debt. The loan was structured as a senior loan of $52MM with the option of a $10MM paydown within the first 24 months, after that the rate will be fixed at a lower rate for the remainder of the loan term.