Sonnenblick-Eichner Co. Arranges $84 Million Loan to Refinance Ocean Key Resort & Spa in Key West, FL
Sonnenblick-Eichner Company, on behalf of Noble House Hotels & Resorts, has arranged $82.425 million of fixed rate first mortgage financing for the Ocean Key Resort & Spa in Key West, FL.
Ocean Key Resort and Spa is a 100-room, full-service, waterfront resort recently honored by Forbes as the Best Luxury Resort in Key West. Proceeds from the five-year, non-recourse loan priced in the low 5% range, will be used to pay off and defease the existing loan and fund a $10.5 million renovation of the property. The life insurance company loan is interest-only for the entire term.
Amenities at the resort include a full-service restaurant, an oceanfront pool with cabanas and a poolside bar and spa. The resort also includes Sunset Pier and the Sunset Pier Restaurant and Bar, one of Key West's most popular venues for dining and entertainment, offering sunset views over the Gulf of Mexico.
"The borrower decided to refinance an existing loan that was maturing in 2025 since the defeasance premium declined almost 74% since the beginning of the year," said Sonnenblick-Eichner Principal Elliot Eichner. "The life company execution coupled with the view that the cost of capital is likely to continue to increase in the future also factored into the decision to refinance at this time."
"Given the asset class and excellent sponsorship, we were able to attract multiple insurance company lenders who had an interest in providing financing," added Patrick Brown, also a Principal of Sonnenblick-Eichner Company.