BEVERLY HILLS, CA--(Marketwired - May 21, 2013) - Sonnenblick-Eichner Company announced today that it has arranged $59,500,000 of financing for the St. Regis Deer Valley in Deer Valley, Utah. The property is located on the mountain at the Deer Valley Ski Resort, providing ski-in, ski-out amenities at this world class destination. The resort offers 67 condominium units divisible into 181 hotel keys and 24 whole ownership Private Residences. Amenities at the resort include a 17,000 square-foot Remède spa, a Jean-Georges Vongerichten signature restaurant (J&G Grill) and a private Deer Crest Club offering private lounge areas and lockers for its members.
The financing, which was provided by a major life insurance company, was comprised of three separate loans: a 10-year fixed rate mortgage with 30 year amortization, secured by the hotel operations and common areas of the resort; a 10-year fixed rate, interest only mezzanine loan and a 10-year fixed rate, interest only condominium inventory loan, secured by the remaining condominium and Private Residence inventory. The mezzanine and condominium inventory facilities were structured to allow for periodic principal pay-downs over the loan term with no prepayment premiums. Sonnenblick-Eichner Company also arranged the $212,500,000 construction loan for the property in 2007.
David Sonnenblick, a Principal of Sonnenblick-Eichner Company, commented, "We were able to structure a long term fixed rate financing program that allows the borrower to execute their business plan of selling the remaining condominium and Private Residence inventory. The ability to prepay the fixed rate mezzanine and condominium loans with no premium was instrumental in allowing our client the flexibility of selling these units without any time pressure."
Elliot Eichner, also a Principal of Sonnenblick-Eichner Company, added: "Due to the tremendous amount of liquidity in the capital markets for all product types, including hotels, we were able to generate interest in this financing from both life insurance companies and private debt funds. We believe it continues to be an opportune time to refinance, with interest rates for long term fixed rate money in the low 4% range."
About Sonnenblick-Eichner Company
Sonnenblick-Eichner Company (www.sonneich.com) is a Beverly Hills-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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