Prudential Closes $116 Million Mortgage Loan for Outrigger Enterprises Hotels

Press Release
May 1, 2001
SAN FRANCISCO, CA -- Prudential Mortgage Capital Company, a business of The Prudential Insurance Company of America, announced yesterday that it recently originated a $116 million mortgage loan for five Outrigger Enterprises hotels in Waikiki, Hawaii.

The refinancing is comprised of three loans. The first loan is a $72.3 million loan on the 883-room Outrigger Reef Hotel on Waikiki Beach. The remaining two loans include $22.95 million for the 439-room OHANA Waikiki Tower Hotel, and a $20.75 million loan on three smaller hotels in the Waikiki area of Honolulu.

Prudential Mortgage Capital plans to include all three loans in securitizations scheduled for later this year. The transaction, arranged by Sonnenblick-Goldman Company, Denver, Colo., closed on March 29. The 10-year loans have a 25-year amortization schedule.

``Outrigger Enterprises' 50-year history of operating hotels in Hawaii--and its proven track record of excellence in an area that has a limited supply of hotel rooms--makes this an attractive lending opportunity,'' said Frederick van Overbeek, principal of Prudential. Outrigger, the largest full-service lodging company in Hawaii, owns and operates 16 hotels and manages 22 hotels/condominiums in Hawaii, Guam, the Marshall Islands, Fiji and Australia under its two hotel brands--Outrigger Hotels & Resorts and OHANA Hotels of Hawaii.

Sonnenblick-Goldman Company is the industry's leading independent real estate investment banking firm. Founded in 1893 to serve the financing needs of the real estate industry, Sonnenblick-Goldman Company provides a full range of real estate financial services including debt and equity placements, joint ventures, investment sales and real estate advisory services. Headquartered in New York, Sonnenblick-Goldman Company maintains offices in Denver, Hong Kong, Miami, San Francisco, Tokyo and Washington, D.C.

Prudential Mortgage Capital Company is a national full-service, commercial mortgage finance business, originating mortgage loans for Fannie Mae and FHA programs, the capital and high-yield markets, Prudential's general account, and other institutional investors. Prudential Mortgage Capital has a combined servicing portfolio of $32 billion as of December 31, 2000.

The Prudential Insurance Company of America, with more than $371 billion in assets under management as of December 31, 2000, is one of the largest life insurance companies in the United States and is among the largest financial services institutions in the world. Prudential serves millions of individual and institutional customers worldwide and offers a variety of products and services, including life insurance, property and casualty insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, real estate brokerage franchising and relocation services.

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Contact: 

     The Prudential Insurance Company of America, Newark
     Theresa Miller, 973/802-7455