Sonnenblick-Eichner Co. Arranges $50 Million Loan to Refinance Luxury Boutique Hotel in Pismo Beach, CA
Sonnenblick-Eichner Company has arranged $50 million of long-term fixed-rate first mortgage financing for the Cliffs Hotel & Spa, a 162-room, full-service, luxury boutique hotel located on a bluff overlooking the Pacific Ocean in Pismo Beach, CA.
The non-recourse loan was funded by an investment bank and priced at 4.8 percent with interest-only payments for the entire term of the loan. Proceeds from the loan provided for a return of equity to the Borrower in order to purchase a partnership interest.
Located along California's central coast, the Cliffs Hotel & Spa features direct beach access, Marisol (a full-service restaurant and bar), a heated outdoor pool and Jacuzzi, Dia Feliz Spa, The Salt + Sundry retail outlet, fully equipped fitness and business centers and on/off-site valet parking for up to 209 cars. The hotel has approximately 27,000 square feet of indoor/outdoor meeting and event space, more than any other hotel in Pismo Beach.
Elliot Eichner, a Principal and Co-Founder of Sonnenblick-Eichner Company, commented, "Consistent with all of our recent financing transactions, this loan was competitively bid among 10 lenders resulting in a sub-200 bps. credit spread."
Patrick Brown, also a Principal of Sonnenblick-Eichner Company, added: "Due to the oceanfront location and "Drive-to-Leisure" orientation, the property has a long history of stable cash flow, which led to the loan executing at such favorable terms."
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. Our clients benefit from our combined 100 years of transactional experience. Through our extensive relationships with both domestic and international capital providers, we identify the most logical capital sources for each transaction and through a competitive bidding environment obtain the best possible pricing and deal structure for our clients. We bring innovative solutions to complex capital transactions as a result of our extensive experience and long standing relationships with real estate capital providers.
