Private Money Hawaii

Best Commercial Loan Options in Hawaii for Investors (Fast Breakdown)

Hawaii’s commercial real estate market is competitive, high-value, and moves quickly. Investors looking to acquire or refinance commercial property across Oahu, Maui, Kauai, and the Big Island need financing that’s fast, flexible, and built for the unique challenges of the islands.

Traditional banks move slowly and require mountains of documents — tax returns, global cash flow analysis, business financials, and rigid underwriting standards. Private commercial lenders, on the other hand, focus on asset-based approvals, local underwriting, and speed, making them the top choice for serious Hawaii investors in 2025.

In this guide, we break down the best commercial loan options in Hawaii, what each loan type is used for, and how investors choose the right one for acquisitions, value-add opportunities, and refinances.

Why Investors Need the Right Commercial Loan in Hawaii

Hawaii’s CRE market has unique characteristics:

• Higher building and insurance costs
• Strong demand for warehouse and retail
• Limited supply in industrial zones
• High tourism-driven performance for hospitality
• Mixed-use buildings common in Honolulu
• Zoning that varies widely by island
• Condotel-style commercial assets
• Older buildings with deferred maintenance

Because of these dynamics, the best loan option depends heavily on:

• The property
• The NOI
• The business plan
• How fast you need to close
• Whether the asset is stabilized or value-add
• Your exit strategy

Below is the 2025 Hawaii-specific breakdown of commercial loan options.

Option #1 — Private Commercial Bridge Loans (Fastest Option)

Best for:

Investors who need fast, flexible financing.

Private bridge loans are the top choice in Hawaii for:

• Quick closings (7–14 days)
• Property banks reject
• Value-add commercial acquisitions
• Partially vacant buildings
• Mixed-use properties
• Buildings needing renovation
• Rent roll repositioning
• Stabilization strategies

Why they work in Hawaii:

Bridge lenders focus on property value, not tax returns. This is ideal for:

• Kalihi warehouses
• Kapolei industrial
• Kihei retail
• Honolulu mixed-use buildings
• Older buildings needing upgrades

Typical bridge loan terms:

• LTV: 60%–75%
• Credit: 600+
• Closing time: 7–14 days
• Docs: Minimal — no W-2s or tax returns
• Term: 12–36 months

If you need speed, bridge loans are the #1 commercial loan option in Hawaii.

Option #2 — Private Commercial Permanent Loans (Investor CRE Loans)

Best for:

Stabilized commercial properties with predictable NOI.

These loans are ideal for:

• Fully leased buildings
• Strong tenant mix
• Long-term hold strategies
• Lower-rate, longer-term structures

Used for:

• Industrial
• Retail
• Office
• Multifamily 5+
• Mixed-use
• Medical office
• Storage facilities

Why Hawaii investors choose them:

They provide fixed terms, simplified underwriting, and non-bank flexibility.

Option #3 — Commercial Hard Money Loans

Best for:

Properties that need work or repositioning.

Commercial hard money loans are commonly used for:

• Distressed assets
• Deferred maintenance
• Fire damage
• Condotel-style commercial properties
• Restaurants with build-out needs
• Non-stabilized income

These loans are ideal on Oahu, Maui, and Big Island where older buildings may need:

• Roof replacement
• Plumbing/electrical updates
• Structural improvements
• Parking lot resurfacing

Why they’re valuable:

Banks won’t touch distressed or non-stabilized assets — private lenders will.

Option #4 — Commercial Renovation / Value-Add Loans

Best for:

Investors improving NOI or repositioning the asset.

This loan type funds both:

• Acquisition
• Rehab / upgrades

Examples:

• Converting vacant retail into office
• Upgrading industrial units
• Improving hospitality rooms
• Adding new tenants
• Improving property management
• Cosmetic or structural renovation

Why this matters in Hawaii:

Older buildings across Honolulu, Lahaina, Hilo, and Lihue often need improvements before they’re bankable.