Hurricane Lane Heads for Hawaii, 77 Properties Backing $7B in CMBS Loans in Its Path


As Hurricane Lane barrels towards Hawaii, analysts at Kroll Bond Rating Agency have issued an alert for 71 CMBS loans —roughly $7 billion in UPB—backed by 77 properties that could be in the storm’s path.

Hurricane Lane is expected to curl toward the archipelago today through Saturday, according to The Weather Channel. Although the extent of the damage is impossible to predict, its 145 mph winds are expected to pack a punch as it bears down on the islands, bringing flash flooding, mudslides, battering waves and coastal flooding.

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At Category 4 intensity, Lane is the first major hurricane to hit Hawaii since 1992, when Hurricane Iniki belted Kauai causing $3.1 billion in damage in its wake.

KBRA’s research shows that the largest single-asset exposure is the $1.4 billion Ala Moana loan, which is in the GSMS 2012-ALOH single borrower transaction. The loan’s collateral comprises 2.1 million square feet of retail and office space across the Ala Moana Center in Honolulu—the largest shopping mall in Hawaii— as well as two office buildings, and a retail strip center. The center’s 672,581-square-foot expansion serves as collateral for a $500 million loan recently securitized in the DBWF 2018-AMXP deal.

The $1.28 billion Hilton Hawaiian Village Waikiki Beach Resort is the second largest asset exposure. Part of the single asset HILT 2016-HHV transaction, the collateral comprises 2,860 keys across five towers, 150,000 square feet of indoor and outdoor meeting space, and 130,000 square feet of retail space.

Other Hawaii properties backing CMBS loans that could be impacted by the hurricane include the Four Seasons Resort Maui and the Hyatt Regency Waikiki Beach Resort & Spa.