Sonnenblick-Eichner Arranges $112M for Hotel Portfolio
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BEVERLY HILLS, CA-Sonnenblick-Eichner Co. has arranged $112 million of non-recourse, first mortgage and mezzanine financing for an 11-property hotel portfolio totaling 2,130 rooms. The hotels include both full-service and select service hotels branded by Hilton Worldwide and Intercontinental Hotels and Resorts.
The five-year fixed rate financing was underwritten to 80% of the portfolio value. The financing has a blended interest rate in the mid 6% range with a 25-year amortization schedule, according to a prepared statement.
Elliot Eichner, a principal of Sonnenblick-Eichner, says in the statement that “We were successful in securing a capital source that provided financing for the entire capital stack for both the senior and mezzanine loan, resulting in a seamless transaction for the borrower. The first mortgage component will be securitized, and the mezzanine tranche will be retained by the issuer. Given the liquidity in the capital markets, the loan sized to a debt yield less of than 9.5%. The loan closed within 60 days from application.”
Patrick Brown, also a principal of Sonnenblick-Eichner, adds that “Hurdles in this transaction included getting the lender comfortable with the secondary markets that some of the properties are located in. The quality of the sponsorship gave the lender additional comfort to retain the mezzanine portion of the loan.”
The hotels, located throughout Florida, Michigan, and Tennessee, include the following properties:
*Hilton Naples, Naples, Florida
*Hilton Orlando/Altamonte Springs, Altamonte Springs (Orlando), Florida
*Crowne Plaza Fort Myers at the Bell Tower Shops, Fort Myers, Florida
*Embassy Suites Detroit Metro Airport, Romulus, Michigan
*Hilton Garden Inn Detroit Metro Airport, Romulus, Michigan
*Hampton Inn & Suites Detroit/Airport-Romulus, Romulus, Michigan
*DoubleTree by Hilton Memphis, Memphis, Tennessee
*DoubleTree by Hilton Jackson, Jackson, Tennessee
*DoubleTree by Hilton Murfreesboro, Murfreesboro, Tennessee
*DoubleTree by Hilton Oak Ridge – Knoxville, Oak Ridge, Tennessee
*DoubleTree by Hilton Johnson City, Johnson City, Tennessee
For more insight on lodging and hospitality sector, check out GlobeSt.com's NEW columnist, HREC Investment Advisors' Geoffrey E. Davis, as he provides insights on the current state of hotel investment.
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