An entity tied to Hotel NIA in Menlo Park, California, has secured a $110 million loan to refinance the 11-story building.
Sonnenblick-Eichner Company arranged the first mortgage debt, which was funded by an unnamed private real estate credit investment manager. The debt was issued to Menlo Hotel Owner LLC, with the loan carrying a five-year term and a floating rate.
The move speaks to the demand seen for premium hospitality assets currently, according to Sonnenblick-Eichner. This is especially the case for well-located ones like Hotel NIA, which is situated in the Menlo Gateway master-plan development district and near Meta Platforms' corporate headquarters.
Over the last year, Sonnenblick-Eichner has arranged and completed about $500 million in financings through the hospitality sector. These deals all apply to fixed and floating rate deals.
"There continues to be a tremendous amount of capital in the market today for quality hospitality product," Sonnenblick-Eichner Principal David Sonnenblick said in a statement.
"Due to Hotel NIA's excellent location, the recovery of the Bay area market and strong institutional sponsorship, we were able to generate a significant amount of interest in this financing. The loan [is] priced at a credit spread of less than 400 bps over SOFR."
Hotel NIA was first delivered in 2018 and now features 250 rooms. The property also includes 10,046 square feet of indoor meeting and banquet space, 301 valet parking spots, 5,299 square feet of outdoor space, business and fitness centers, a pool, a Jacuzzi, a market pantry, a cafe, as well as a bar and restaurant.
According to the City of Menlo Park, the master-plan site also includes three office and R&D buildings totaling 694,669 square feet, retail and community centers (10,420 square feet), and three parking structures.
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