Contact Information: Media Contact: Debi Fidler 310-286-7700
Sonnenblick-Eichner Company Arranges $63 Million of First Mortgage Financing for a Portfolio of Six Oceanfront Hotels in California
| Source: Sonnenblick-Eichner Company
LOS ANGELES, CA -- (MARKET WIRE) -- 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.
