Sonnenblick-Eichner Co. Arranges $50 Million Loan to Refinance Luxury Boutique Hotel in Pismo Beach, CA

USA, Beverly Hills, California. May 12, 2022

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."


Cliffs Hotel and Spa
/ SLIDES

About Sonnenblick-Eichner Company

Business Contact:

Bruce Beck
President
DB&R
T: +1 805-777-7971
E: [email protected]
W: http://www.dbrpr.com

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The pandemic provoked more than a global health crisis. It also disrupted world economies, financial markets and social systems on a massive scale. Naturally, there are legal consequences associated with this kind of severe business disruption and the issues will be litigated for years to come. In the hotel industry, there are several issues that are currently germane. One issue pertains to the legal obligations hotels have to re-hire employees who were laid off due to the pandemic. Lawsuits have been filed by former employees who claim that certain promises were made to them when they were furloughed, and they are suing hotels for breach of implied contract. Another major issue involves hotels suing their insurance companies for failing to cover their business losses due to the pandemic. Still other hotels have brought lawsuits against local governments for the strict restrictions that were placed on their businesses, chiefly restaurants and bars. These are just a few of the legal issues that will be addressed in the December issue of the Hotel Business Review.