Hawaii multifamily is concentrated across Honolulu (Oahu) and Maui (Lahaina, Kahului, Wailea), with secondary product on the Big Island (Kona, Hilo) and Kauai (Lihue, Princeville). Hawaii's CRE market is structurally defined by extreme land scarcity, a tightly regulated entitlement framework, a deep tourism and military employment base (Pearl Harbor, Hickam, Schofield Barracks, Kaneohe Bay MCBH), and the highest construction costs in the country (per Department of Business, Economic Development & Tourism reports, 2024); the post-Lahaina-fire (August 2023) Maui rebuilding cycle is a central ongoing CRE variable , supporting active institutional and regional-bank lender competition on stabilized agency executions and the broader value-add bridge pool. Honolulu multifamily benefits from one of the most supply-constrained land markets in the country and a deep institutional rental-housing demand base; Maui multifamily is in active rebuild post-Lahaina with sustained workforce-housing demand far exceeding any plausible near-term supply response.
Active capital sources
- Agency Lenders (Fannie/Freddie)
- Hawaii Regional Banks
- National Debt Funds
- Life Companies
Loan programs we place
- Acquisition Financing
- Value-Add Bridge Loans
- Agency Perm Refinance
- Construction-to-Perm
Source notes
- BLS QCEW, 2025
Frequently asked questions
What is the typical LTV for Honolulu multifamily in the current market?
Stabilized agency executions typically clear 65% to 75% LTV on Class A and 70% to 80% on workforce / Class B . Honolulu multifamily benefits from one of the most supply-constrained land markets in the country and a deep institutional rental-housing demand base; Maui multifamily is in active rebuild post-Lahaina with sustained workforce-housing demand far exceeding any plausible near-term supply response Bridge debt funds will go higher on value-add product where the going-in basis supports the stabilized agency take-out.
Are Hawaii multifamily loans non-recourse?
Yes for institutional executions. Agency, CMBS, life-company, and most national debt-fund executions are non-recourse with standard bad-boy carve-outs. Smaller-balance regional bank loans and most construction and bridge loans typically carry partial recourse, particularly for newer sponsors or during construction and lease-up periods, with recourse burning off at defined stabilization milestones.
What is Hawaii's transfer tax structure for commercial multifamily?
Hawaii imposes a graduated state conveyance tax: for commercial property over $10 million, the rate is $1.00 per $100 of consideration (1.00%) and rises to $1.25 per $100 above $10 million for non-resident transferees (Hawaii Department of Taxation, 2024). Total transfer-side tax burden on a typical $10-25M Hawaii commercial transaction runs roughly 1.00% to 1.25% of consideration, among the highest in the country.
What construction debt is available in Hawaii right now?
Multifamily construction is most active in the Honolulu metro and the broader institutional submarkets where the going-in basis supports stabilized agency refi and the demand thesis is strongest. Required equity is typically in the 30% to 40% range with partial recourse during construction and lease-up burning off at stabilization. Hardened insurance markets have meaningfully tightened construction lender response on coastal and hail-exposed product.