Sonnenblick-Eichner Company has arranged $22 million of non-recourse first mortgage financing for the leasehold interest in the Doubletree by Hilton Los Angeles-Commerce, a 201-room hotel located in the city of Commerce, approximately six miles southeast of downtown Los Angeles.
The five-year loan was placed with an international money-center bank at a fixed interest rate of 5.9% for the entire term. Proceeds were used to pay off a maturing CMBS loan and provided for a return of equity to the partnership.
Amenities at the hotel include a full-service restaurant and bar and approximately 9,000 sq. ft. of meeting and banquet space. The hotel also features an outdoor pool and jacuzzi, fitness center, business center and up to 420 surface parking spaces.
“We were successful in arranging a five-year fixed rate loan, which in this market is a preferred execution given the high short-term SOFR rate,” said Elliot Eichner, a principal of Sonnenblick-Eichner Company. “Fixing the rate mitigates the risk of increasing interest rates, as well as eliminating the need to purchase an interest-rate cap.”
Patrick Brown, also a principal of Sonnenblick-Eichner Company, added, “We were able to identify a lender that spent the time to work through and understand the complexities associated with leasehold financings.”
