Sonnenblick-Eichner Company has arranged $19.5 million of first mortgage debt to refinance the Texican Court hotel in Irving, TX on behalf of Valencia Hotel Group.
The non-recourse five-year, fixed-rate loan was funded by a Wall Street investment bank. The loan is interest-only for the entire term at an interest rate of 7.74%, which included a buydown of the rate required by the lender.
Built in 2019, the 152-room upscale boutique hotel features a retro-aesthetic design of the mid-century motor court with elements inspired by “Old Texas” architecture. Amenities include a full restaurant, poolside bar, 3,228 sq. ft. of indoor meeting space, 9,028 sq. ft. of outdoor event space, a fitness center, swimming pool, outdoor firepits and a beer garden. The hotel benefits from its central location in the urban center of Las Colinas, a 12,000-acre master planned development offering approximately 35.8 million sq. ft. of office space.
“This interest-only, fixed-rate refinancing allowed our client to pay off their regional bank construction loan, which was a floating rate SOFR-based facility with amortization, allowing for a significant increase in cash flow to the partnership,” said David Sonnenblick, principal, Sonnenblick-Eichner Company.
Patrick Brown, also a principal of Sonnenblick-Eichner Company, added, “We had 18 financing quotes on this transaction and we successfully closed this financing at a debt yield of less than 12%.”
