Christine Hitt
In a major step forward for the redevelopment of Coco Palms Resort on Kauai, the developer Reef Capital Partners has secured $431 million in financing, paving the way for construction to continue.
The resort, which opened in 1953, became famous after appearing in the 1961 Elvis Presley film "Blue Hawaii." In 1992, Hurricane Iniki severely damaged the property, and it's been closed since then.
"Coco Palms is listed on both the National Register of Historic Places and the Hawaii Register of Historic Places, and we don't take that lightly," Jon Day, CFO of Reef Capital Partners, said in a news release. "Restoring this property means honoring the culture, history and people of Kauai at every step, and we are committed to doing that."
In 2022, Reef Capital Partners acquired the property and announced in 2024 that it will reopen as a Kimpton Resort and Spa. Securing the $431 million financing marks a key step in moving the redevelopment forward.
"Coco Palms holds a unique place in Kauai's history, and its restoration is an exciting development for the island and its residents," Chris Callahan, CEO of commercial real estate lender X-Caliber, said in a news release. "We are proud to support Reef Capital and the entire development team with financing tailored to the project's needs. This transaction reflects our commitment to providing creative capital solutions that help experienced sponsors execute complex and impactful projects."