Somera Capital Management Gets $27M Refi for CA Hotel
- Feb 28, 2019
Somera Capital Management has secured a $26.5-million interim first mortgage debt to refinance the Inn at the Pier, the company’s 104-key boutique hotel in Pismo Beach, Calif. The non-recourse interim loan was arranged by Sonnenblick-Eichner Co., and was provided by a debt fund. The loan was priced in the mid-300s over 30-day LIBOR and provided for a return of equity to the borrower.
“The loan refinanced the construction loan that we arranged for the ownership,” said Patrick Brown, principal at Sonnenblick-Eichner Co., in a prepared statement.
The Inn at the Pier is located at 601 Cypress St., near freeways 1 and 101, within a 5-minute walk of Pismo Beach Pier. Additionally, the hotel is within a 10-minute walk from downtown, which provides access to shopping, dining and entertainment options. The hotel, managed by Pacifica Hotels, opened in 2017 and features a restaurant, pool and spa and a rooftop bar. Additional hotel amenities include a 1,200-square-foot meeting space, a fitness center and 2,637 square feet of street-level retail space.
“Given the liquidity in the debt capital markets, the loan was competitively bid for a property with limited operating history since completion of construction,” said Elliot Eichner, principal at Sonnenblick-Eichner Co., in prepared remarks.
Image courtesy of Sonnenblick-Eichner