Dealmaker: Sonnenblick-Eichner Arranges $92M to Refinance Hotel Portfolio

Sonnenblick-Eichner Co., Beverly Hills, Calif., arranged $92 million to refinance a four-hotel portfolio totaling 592 rooms in four states. 

The portfolio included Hyatt House-flagged properties in Falls Church, Va. and King of Prussia, Pa., an Albany, N.Y. Hilton Garden Inn and the boutique Archer Hotel in Austin, Texas.

The Falls Church Hyatt House has 148 rooms; the King of Prussia Hyatt House has 147. The Albany Hilton Garden Inn includes 126 rooms and the Archer Hotel has 171.

The four separate non-recourse, non-cross-collateralized loans came from three different lenders. Sonnenblick-Eichner arranged 10-year financing on the two Hyatt House properties from a money center commercial bank and floating-rate financing from two regional banks on the Archer Hotel and Hilton Garden Inn properties.   

“The financings were all competitively bid,” said Sonnenblick-Eichner Principal Elliot Eichner. “The recently completed Archer Austin closed with only three months of operational history. The loan also provided for an earn-out allowing the borrower an opportunity to increase loan proceeds as the property ramps up.”

Sonnenblick-Eichner Principal Patrick Brown noted that both the Hyatt House properties received long-term fixed rate loans and Archer Hotel and the Hilton Garden Inn received flexible LIBOR-based facilities.