NATIONAL REPORT—Sonnenblick-Eichner Company, Cronheim Hotel Capital (CHC), Knighthead Funding LLC and Penn-Florida Companies are financing projects in California, Georgia, Massachusetts and Florida.
Financing Secured for Construction of Cambria Hotel in California
Sonnenblick-Eichner Company has arranged $29 million in construction financing for the Cambria Hotel Calabasas, a 125-room, select-service hotel to be located on Las Virgenes Rd., one block south of U.S. Highway 101/Ventura Freeway in Calabasas, CA. Amenities at the hotel will include meeting space, indoor/outdoor dining and a lobby bar, an outdoor pool, a business and fitness center, and surface parking for approximately 150 cars. The loan provided funding in excess of 65% of total project costs and was provided by an international commercial bank.
CHC Arranges $6.1M Refi for Hampton Inn in Georgia
CHC has arranged $6.1 million for the refinance of the Hampton Inn Milledgeville. The loan was placed with a national lender and offered a 10-year term and 30-year amortization at a fixed interest rate.
The 75-key property was purchased by the sponsor in 2015, and realized strong performance gains under new management with the completion of a PIP. This was impacted when new supply opened in the market in 2017, but the property had recently stabilized. Although Milledgeville (population 18,575 in 2017) is a small market, the financing allowed the sponsor to return nearly all of its equity, and secure an attractive interest rate on a non-recourse basis.
Knighthead Provides $37.75M Loan for Hotel Conversion in Massachusetts
Knighthead Funding has originated a $37.75-million loan for the completion of an upscale, independent 67-room hotel in Cambridge, MA. With Knighthead Funding’s 24-month financing, the sponsor, a local partnership operating as Sean Casey LLC, will complete the transformation of a four-story multifamily building into a 67-room boutique hotel that will include ground-floor retail, restaurant and the addition of a 10,000-sq.-ft. fifth floor penthouse with a rooftop lounge. The new hotel, expected to open in the first quarter of 2020, will be managed by Hay Creek Hotels, which operates 19 boutique hotels across the country.
Penn-Florida Companies Provides Loan for The Residences at Mandarin Oriental, Boca Raton
Penn-Florida Companies has provided a $225-million construction loan for The Residences at Mandarin Oriental, Boca Raton. The closing completes the capitalization for Via Mizner. The construction of The Residences commenced several months ago and is scheduled to be completed in less than two years simultaneously with the new Mandarin Oriental Hotel. The financing was placed by Anthony Orso, president of Newmark Capital Market Strategies, who specializes in large, complex project capitalization, with the assistance of Bill Weber and Henry Stimler.
