Sonnenblick-Eichner Co. Arranges $50 Million Loan to Refinance Luxury Boutique Hotel in Pismo Beach, CA
Sonnenblick-Eichner Company has arranged $50 million of long-term fixed-rate first mortgage financing for the Cliffs Hotel & Spa, a 162-room, full-service, luxury boutique hotel located on a bluff overlooking the Pacific Ocean in Pismo Beach, CA.
The non-recourse loan was funded by an investment bank and priced at 4.8 percent with interest-only payments for the entire term of the loan. Proceeds from the loan provided for a return of equity to the Borrower in order to purchase a partnership interest.
Located along California's central coast, the Cliffs Hotel & Spa features direct beach access, Marisol (a full-service restaurant and bar), a heated outdoor pool and Jacuzzi, Dia Feliz Spa, The Salt + Sundry retail outlet, fully equipped fitness and business centers and on/off-site valet parking for up to 209 cars. The hotel has approximately 27,000 square feet of indoor/outdoor meeting and event space, more than any other hotel in Pismo Beach.
Elliot Eichner, a Principal and Co-Founder of Sonnenblick-Eichner Company, commented, "Consistent with all of our recent financing transactions, this loan was competitively bid among 10 lenders resulting in a sub-200 bps. credit spread."
Patrick Brown, also a Principal of Sonnenblick-Eichner Company, added: "Due to the oceanfront location and "Drive-to-Leisure" orientation, the property has a long history of stable cash flow, which led to the loan executing at such favorable terms."
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