Financing for a Portfolio of Six Oceanfront Hotels in California
ANGELES, CA – November 7, 2006 - Sonnenblick-Eichner Company announced
today that it has arranged $63,000,000 of first mortgage financing for
a portfolio of six oceanfront hotels located along the Pacific coastline
in San Diego, San Francisco, Cambria, and Pismo Beach, California.
The portfolio includes three full service and three limited service hotels.
The financing was a 10-year fixed rate loan priced in the low 100 bps range
over the 10-year treasury. The loan was interest-only for the entire
term and was provided by a European-based financial institution.
The properties were not cross-collateralized.
The 493-room portfolio includes the Blue Sea Lodge, San Diego; the Lighthouse Hotel, Pacifica (San Francisco); the FogCatcher Inn and the Fireside Inn, Cambria; and the Spyglass Inn and Cottage Inn by the Sea, Pismo Beach. The properties are rated Three-Diamond by the American Automobile Association.
Elliot Eichner, a Principal of Sonnenblick-Eichner Company commented, “This unique portfolio was able to attract favorable terms due to the properties’ strategic location along the California coast, which creates severe barriers to entry for new hospitality developments.”
Patrick Brown, also a principal of Sonnenblick-Eichner Company, added, “The hotel debt capital markets did not differentiate between the full and limited service assets in the portfolio in terms of pricing for this transaction.”
About Sonnenblick-Eichner Company
Sonnenblick-Eichner Company (www.sonneich.com) is a Los Angeles-based real estate investment banking firm that specializes in arranging structured finance for acquisition, construction and permanent loans, interim and mezzanine financing as well as joint venture equity transactions. The company is recognized for its expertise in marketing institutional real estate for sale and providing capital for all product types including retail, office, hospitality, industrial, and multifamily properties.
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