Sonnenblick-Eichner Company has arranged $22.6 million of first mortgage leasehold financing on behalf of Valencia Hotel Group to refinance its Hotel Valencia Riverwalk, a 12-story, 213-room, full-service luxury hotel on the Riverwalk in downtown San Antonio.
The property, part of the Valencia Hotel Collection, features 9,841 sq. ft. of meeting and event space, a fitness center, an interior open-air courtyard and al fresco dining overlooking the San Antonio River. Food and beverage offerings include signature restaurant Dorrego’s; Naranja Tequilla and Mezcal Bar; and Café Naranja.
“We had tremendous lender interest in this financing opportunity and ultimately closed a five-year fixed-rate loan, which was sized to a low debt yield for a hotel encumbered by a ground lease,” said David Sonnenblick, principal, Sonnenblick-Eichner.
Patrick Brown, also principal, Sonnenblick-Eichner, added, “The loan refinanced a maturing 10-year loan that we originally placed on the property. The debt markets are extremely liquid for both fixed- and floating-rate hotel loans, as evidenced by the level of interest we experienced on this transaction and other hotel loans that we are marketing.”
