What's happened
Reef Capital Partners has secured $431 million in financing for the Coco Palms project in Kaua‘i, aiming for a 2028 opening as A Kimpton Resort. Lenders include X-Caliber and CastleGreen Finance under the C-PACE program. Despite funding, public confidence remains cautious given decades of delays and legal obstacles.
What's behind the headline?
What this update means
- Financing solidifies lender confidence after three decades of stalled progress
- The project remains politically and culturally sensitive given Native Hawaiian burial ground concerns and past lawsuits
- The 2028 opening will depend on construction leading to utilities reinstatement and compliance with regulations
Why readers should care
- A revived Coco Palms could impact tourism and local economy on Kaua‘i
- The deal signals broader use of C-PACE in high-profile redevelopment
Forecast
- Construction will begin in 2027 if permitting stays on track, with potential delays if regulatory or community challenges re-emerge
How we got here
The Coco Palms site has long been stalled since Hurricane Iniki in 1992. Financing now comes as developers push to revive the iconic hotel under a Kimpton brand, with a 2028 target. Permits and zoning have been cleared, and a demolition phase began in 2024. The new capital structure includes conventional financing and a C-PACE component to support clean energy and sustainability.
Our analysis
- AP News reports that Reef Capital Partners has secured financing totaling $431 million for Coco Palms, including $186 million conventional and $245 million through CastleGreen Finance under C-PACE. They note historical delays and local skepticism. - }
Go deeper
- What does this mean for Kaua‘i’s tourism rebound?
- Could past delays reappear and stall progress again?
- How will C-PACE funding influence future hotel projects?
More on these topics
-
Illinois - US State
Illinois is a state in the Midwestern and Great Lakes regions of the United States. It has the fifth largest gross domestic product, the sixth largest population, and the 25th largest land area of all U.S. states. Illinois has been noted as a microcosm of
-
Block Club
Block Club Chicago is an online newspaper that reports local and neighborhood news in Chicago. The website operates as a non-profit, subscription-based service.After DNAinfo was shut down in November 2017, there was a need for a local news website to...
-
Fannie Mae - Mortgage loan company
The Federal National Mortgage Association, commonly known as Fannie Mae, is a United States government-sponsored enterprise and, since 1968, a publicly traded company.
-
Frank Lloyd Wright - Innovator
Frank Lloyd Wright was an innovative American architect, designer, writer, and educator. He designed more than 1,000 structures over a creative period of 70 years.