Dealmaker: Deutsche Bank Lends $60M for Calif. Resort

Passport Resorts, Sausalito, Calif., refinanced luxury resort Post Ranch Inn in Big Sur, Calif., in a $60 million transaction.

Sonnenblick-Eichner Co., Beverly Hills, Calif., arranged the first-mortgage financing. Commercial Observer first reported Deutsche Bank originated the 10-year, interest-only, non-recourse loan at a 3.29 percent interest rate.

Overlooking the Pacific Ocean from the cliffs of Big Sur, Post Ranch Inn occupies 90 acres and includes 39 guestrooms in 27 buildings, a spa, two cliff-top infinity-edge pools, an outdoor heated lap pool and private hiking trails.

“We were able to create a competitive environment resulting in multiple financing quotes at credit spreads less than 120 basis points, as well as negotiating an advantageous floor on the 10-year swap rate, allowing for a continued reduction in rate as interest rates declined,” said Sonnenblick-Eichner Principal Elliot Eichner.

Patrick Brown, also a Sonnenblick-Eichner Principal, noted 17 lending sources quoted the financing opportunity, including life insurance companies and Wall Street investment banks. “The loan pays off a maturing loan that we arranged in 2014,” he said.