Dealmaker: Sonnenblick-Eichner Co. Arranges $300M Loan for Mixed-Use, Hotel Assets

Sonnenblick-Eichner Co., Beverly Hills, Calif., arranged $300 million to refinance a Hawaii mixed-used property and a three-state hotel portfolio.

In Oahu, Hawaii, the firm secured $165 million in non-recourse financing for AIPA Properties LLC to refinance Airport Industrial Park, a 1.3 million-square-foot mixed-used property adjacent to Honolulu International Airport.

Constructed in phases beginning in 1989, the 12.5-acre Class A Airport Industrial Park is the largest office and warehouse complex in the state. It includes office space, telecom/data flex space and warehouse space with 38-foot clear heights. Hawaiian Airlines, AT&T and Lockheed Martin Corp. and others fully the asset.

Sonnenblick-Eichner Co. Principal David Sonnenblick said both commercial mortgage-backed securities lenders and life insurance companies expressed interest in the deal. “Both capital sources provided 15-year interest-only terms, with our client ultimately deciding upon a life insurance company execution,” he said.

Sonnenblick noted his client chose to defease its existing CMBS loan due to the new loan’s significantly lower interest rate.

Sonnenblick-Eichner Co. also arranged $135 million in non-recourse funds for Cooper Hotels, Memphis, to refinance 11 hotel properties totaling 2,037 rooms. The subject properties included full service, select service, extended stay and limited service hotels in Florida, Michigan and Tennessee, all branded by Hilton Worldwide.

The portfolio included:
–Hilton Naples, Naples, Fla.
–Hilton Orlando/Altamonte Springs, Altamonte Springs (Orlando), Fla.
–Homewood Suites by Hilton Ft. Myers Airport, Fort Myers, Fla.
–Embassy Suites by Hilton Detroit Metro Airport, Romulus, Mich.
–Hilton Garden Inn Detroit Metro Airport, Romulus, Mich.
–Hampton Inn & Suites Detroit/Airport-Romulus, Romulus, Mich.
–DoubleTree by Hilton Memphis, Memphis, Tenn.
–DoubleTree by Hilton Jackson, Jackson, Tenn.
–DoubleTree by Hilton Murfreesboro, Murfreesboro, Tenn.
–DoubleTree by Hilton Oak Ridge-Knoxville, Oak Ridge, Tenn.
–DoubleTree by Hilton Johnson City, Johnson City, Tenn.

Elliot Eichner, Principal with Sonnenblick-Eichner Co., said The Cooper Hotels portfolio was marketed for both fixed- and floating-rate executions. “Ultimately, our client opted for a floating-rate loan affording them maximum flexibility with respect to prepayment,” he said.

Eichner said the five-year floating-rate loan was underwritten to a 70 percent loan-to-value ratio and pays on an interest-only basis for the entire term.