The recent earthquake in Japan may have damaged some coastal areas of Hawaii and California, including some Hawaiian hotel real estate securing commercial mortgage-backed securities loans.
Realpoint said there were reports of flooding on Maui's coast and a foot of water in the non-CMBS King Kamehameha hotel, as well as reports of "severely damaged" harbors in Crescent City and Santa Cruz, Calif. However, a late Friday report by the company noted, damages to the California harbors did not appear to extend to land-based structures.
The Morningstar affiliate said it has not received any reports of damage to CMBS hotels in Hawaii, but it is monitoring 17 beachfront resorts that secure loans in 21 deals, the most influential being a Kauai hotel that represents more than 72% of the property balance in one transaction. But other loans represent as little as 0.3% of the property balance.
