Sonnenblick-Eichner Co. Arranges $50 Million Loan to Finance Acquisition and Renovation of Inn at Rancho Santa Fe in San Diego, CA
Sonnenblick-Eichner Company on behalf of Steve Herman Hotels, has arranged $50 million in first mortgage debt for the acquisition of Inn at Rancho Santa Fe, an 82-room, full-service, luxury boutique resort located in north San Diego County's exclusive enclave of Rancho Santa Fe, CA
A portion of the loan proceeds will be used by the sponsor to fund an extensive $15 million "top-to-bottom" renovation that will reposition the resort as one of the most prominent and exclusive destinations in California. The non-recourse floating rate loan, which provided for 85% of total costs including the renovation of the property, was priced in the mid 7% range
"We were successful in sourcing multiple deal structures for 85% of total costs from a number of different capital providers, including debt and hedge funds as well as family offices," said Elliot Eichner, a Principal and Co-Founder of Sonnenblick-Eichner Company. "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."
"A contributing factor that facilitated the transaction was the sponsor's experience in renovating and repositioning similar resort properties," added Patrick Brown, also a Principal of Sonnenblick-Eichner Company.