Dealmaker: Sonnenblick-Eichner Co. Arranges $50M for California Resort

Sonnenblick-Eichner Co., Beverly Hills, Calif., arranged $50 million in acquisition financing for the Inn at Rancho Santa Fe, an 82-room resort in north San Diego County, Calif.

Loan sponsor Steve Hermann Hotels, Santa Barbara, Calif., will use some loan proceeds to fund a $15 million renovation to reposition the resort as one California’s destinations.

The non-recourse floating-rate loan provided for 85 percent of total costs including the property renovation and priced in the mid 7% range.

Sonnenblick-Eichner Principal and Co-Founder Elliot Eichner said several capital providers, including debt and hedge funds as well as family offices expressed interest in the financing. “The loan was ultimately placed with an alternative investment fund that provided the entire capital stack and will hold the loan on-book to maturity,” he said.

Patrick Brown, also a Principal with Sonnenblick-Eichner, noted Steve Hermann Hotels has experience in renovating and repositioning similar resort properties.