Sonnenblick-Eichner Arranges $35M Financing for SoCal Hotels
- Nov 15, 2017
Sonnenblick-Eichner Co. has arranged three long-term, fixed-rate loans totaling $35.4 million for the refinancing of Best Western Plus Hotels located in Sacramento, Calif. and San Diego. The firm secured $15 million in first-mortgage debt for the 100-key Best Western Plus Truckee-Tahoe hotel and a separate non-cross-collateralized $7 million loan for the 105-key Best Western Plus Rancho Cordova in the Sacramento area. Sonnenblick-Eichner also arranged a $13.4 million leasehold first-mortgage financing for the 173-key Best Western Plus Marina Gateway in National City, Calif.
“The Marina Gateway transaction was a leasehold financing subject to tribal land ownership. We were successful in navigating through all the nuances to satisfy the rating agencies and ultimately the B-piece buyer,” said Elliot Eichner, principal at Sonnenblick-Eichner, in prepared remarks.
After acquiring the Tahoe property in 2013, Vista Investments LLC—a Southern California-based developer and operator of hospitality properties—reflagged the hotel as a Best Western Plus, following a two-year multimillion-dollar renovation. The Best Western Rancho Cordova underwent several renovations since it was acquired in 2006.
“There is an abundance of capital and interest rates are still attractive for hospitality loans of all brands and product types,” said David Sonnenblick, principal at Sonnenblick-Eichner, in a prepared statement. “The lenders on these 10-year, fixed-rate loans were attracted by the quality of the assets, location and historical cash flow of all three hotels.”
Earlier this month, Sonnenblick-Eichner Co. secured the sale of Hampton Inn Seattle/Southcenter, a 153-key hotel in Tukwila, Wash.
Image courtesy of Sonnenblick-Eichner