BEVERLY HILLS, CA—Sonnenblick-Eichner Co. has arranged $34 million in first mortgage financing for a portfolio of three hotel properties. The 829-key portfolio includes Starwood Hotels and Resorts Worldwide and Intercontinental Hotels and Resorts.
"The properties were recently acquired and renovated for all-cash, and presented a challenge since the cash flow was in the initial stages of ramp-up,” said Elliot Eichner, principal of Sonnenblick-Eichner, in a statement. “Given the excellent sponsorship and equity invested to date, we were successful in having the lender underwrite to a forward projection."
The 5-year, LIBOR-based floating rate facility has an interest rate below 4 percent and is interest-only for the first 36 months. The loan was arranged through an unnamed money center commercial bank in the US.
"Due to the liquidity in the capital markets today for hospitality financing, we were able to solicit multiple non-recourse loan offers," said Patrick Brown, Principal of Sonnenblick-Eichner.
The properties include Sheraton Tampa East in Tampa, Fla.; Sheraton Denver Tech Center in Denver, Colo.; and Crowne Plaza Columbus North in Columbus, Ohio.