Dell’s Hawaiian Resort Gets $225 Million Starwood Loan

The Four Seasons Resort Hualalai, a Hawaiian vacation property co-owned by Michael Dell’s MSD Capital LP, is getting a $225 million mortgage from Starwood Property Trust Inc.

The loan has a five-year maturity and two one-year extension options, Starwood, a Greenwich, Connecticut-based real estate finance company, said in a statement today.

The new debt replaces a $176 million loan that was backed by the resort’s hotel and a leasehold interest in the land. That loan had been sent to a firm specializing in troubled debt when it matured in June 2012, according to Morningstar Inc.’s Structured Credit Ratings unit. The property had been hurt by declining travel to the area after the credit crisis and damage from the 2011 Japanese tsunami. MSD Capital and Rockpoint Group LLC bought the real estate in 2006, according to Fitch Ratings.

“We are pleased to leverage our scale, flexible capital and deep underwriting experience to provide this large, complex loan, secured by one of Hawaii’s most high-profile properties, to world-class sponsors,” Boyd Fellows, president of Starwood Property Trust, said in the statement.

Demand at the 865-acre (350-hectare) resort on the Big Island, which also includes a master-planned community, is increasing amid a travel rebound, Patrick Fitzgerald, the resort’s chief executive officer, said in January. While the Big Island has lagged behind Oahu in its recovery, the Hualalai resort has benefited from renovations and the Four Seasons branding, according to Joseph Toy, CEO of Honolulu-based consultant Hospitality Advisors LLC.

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