Dealmaker: Sonnenblick-Eichner Arranges $65M for Marriott Monterey Hotel

Real estate investment banking firm Sonnenblick-Eichner Co., Los Angeles, arranged $65 million to refinance the Marriott Monterey Hotel in downtown Monterey, Calif.

A European money center bank provided the 10-year fixed-rate financing, which was underwritten at a debt yield below 10 percent.

“The widening spreads in the bond market made finding attractive long-term commercial mortgage-backed securities debt very challenging,” said Sonnenblick-Eichner Co. Principal Elliot Eichner.

But Eichner noted that numerous insurance companies, money center and investment banks made attractive loan offers.

“The financing replaced the maturing debt that we arranged in 2006,” said Sonnenblick-Eichner Principal Patrick Brown.

The 341-room Marriott Monterey Hotel abuts the Monterey Conference Center in the city’s downtown retail district. The 10-story hotel includes 16,500 square feet of meeting space and two restaurants.

The Monterey area, home to Pebble Beach Golf Links, Monterey Aquarium and Cannery Row, hosts more than four million visitors per year.