This year we’ve seen a surge in owner/user financing for commercial real estate in Hawaii. The Small Business Administration (SBA) is providing additional financing or second mortgages for owner/users here to once again obtain high rates of leverage that have not be seen over the past two years. We have seen half a dozen deals recently completed with leverage up to 90% and with half of the money at rates as low as 2.89% for 10-years, fully amortized.
With this kind of financing back in the market, we are seeing an uptick in smaller investment property sales in Hawaii. In particular, we’re seeing a surge in transactions for owner/users.