Sonnenblick-Eichner arranges $82.4M loan to refinance Key West resort

Sonnenblick-Eichner Company, on behalf of Noble House Hotels & Resorts, has arranged $82.4 million of fixed-rate first mortgage financing for the Ocean Key Resort & Spa in Key West, FL.

The property is a 100-room, full-service, waterfront resort that features a full-service restaurant, an oceanfront pool with cabanas and a poolside bar and spa. It also includes Sunset Pier and the Sunset Pier Restaurant and Bar.

Proceeds from the five-year, non-recourse loan priced in the low 5% range will be used to pay off and defease the existing loan and fund a $10.5-million renovation of the property. The life insurance company loan is interest-only for the entire term.

“The borrower decided to refinance an existing loan that was maturing in 2025 since the defeasance premium declined almost 74% since the beginning of the year,” said Sonnenblick-Eichner Principal Elliot Eichner. “The life company execution coupled with the view that the cost of capital is likely to continue to increase in the future also factored into the decision to refinance at this time.”

“Given the asset class and excellent sponsorship, we were able to attract multiple insurance company lenders who had an interest in providing financing,” added Patrick Brown, also principal, Sonnenblick-Eichner Company.