Dealmaker: Sonnenblick-Eichner Secures $36M for California Hotel

Sonnenblick-Eichner Co., Beverly Hills, Calif., arranged $36.3 million of first mortgage financing for the DoubleTree by Hilton Hotel Campbell – Pruneyard Plaza, a 169-room hotel in downtown Campbell, Calif.

The fixed-rate loan facilitated the property’s acquisition and provided funds for a $5.8 million property renovation project. A life insurance company provided the 12-year loan, which priced at 4.48 percent with four years of interest-only payments followed by a 30-year amortization schedule.

The hotel is in The Pruneyard, a 27-acre mixed-use complex owned by Federal Realty Investment Trust offering 365,000 square feet of Class A office space and 260,000 square feet of retail space. The hotel’s location south of San Jose in Silicon Valley–one of the country’s strongest lodging markets–results in demand generators from the numerous technology companies headquartered in the area, including eBay, Netflix, Roku, Adobe Systems, Apple and Intel.

“Validating the tremendous amount of liquidity in the debt capital markets, we received 22 competitive loan quotes for this financing from both life insurance companies and commercial mortgage-backed securities lenders,” said Sonnenblick-Eichner Co. Principal Elliot Eichner.