Sonnenblick-Eichner Company has arranged a $75 million first mortgage loan to refinance the Marriott Monterey hotel located in downtown Monterey, CA. The non-recourse, fixed-rate, five-year loan is interest only for the term and was funded by a Wall Street investment bank.
The 341-room full-service hotel offers 16,500 sq. ft. of meeting and event space, a fitness center and an outdoor pool and jacuzzi. The hotel is located across the street from the Monterey Conference Center.
Monterey is the cultural and economic hub of the affluent Monterey Peninsula, comprising the cities of Monterey, Carmel, Pacific Grove and Pebble Beach. With 26 public and private golf courses, the Monterey Peninsula is regarded as the “Golf Capital of the World” and is home to Pebble Beach Golf Links. Other destinations and events include the Monterey Bay Aquarium, Cannery Row, Concours d’Elegance and the Monterey Jazz Festival, all of which attract millions of people to Monterey every year.
“Given the amount of liquidity in the market and the institutional quality of the hotel, we received 19 competitive loan quotes,” said Elliot Eichner, principal, Sonnenblick-Eichner. “We ultimately closed on a five-year, interest-only loan at a credit spread in the low 200s, resulting in an all-in rate to the borrower of less than 6%.”
Patrick Brown, principal, Sonnenblick-Eichner, added, “This is the third permanent loan that we have arranged for the borrower on this property and is an example of the tremendous amount of repeat business that we do.”
