MONTEREY, CA—Real estate investment banking firm Sonnenblick-Eichner Co. has arranged $65 million of first mortgage debt for the refinancing of the 341-room Marriott Monterey Hotel here.
The 10-year, fixed-rate financing was provided by a European bank and was underwritten at a debt yield below 10%.
“The widening spreads in the bond market made finding attractive long-term CMBS debt very challenging,” said company principal Elliot Eichner. “However, we were able to rely on our relationships with other domestic and off-shore lending sources, and through our marketing efforts were able to attract numerous loan offers from insurance companies, money center and investment banks.”
“The financing replaced the maturing debt that we arranged in 2006,” added company principal Patrick Brown. “We are pleased to have had the opportunity to work again with the principals of Wright Hotels and Frank K. Finneran & Co. on behalf the property owner San Carlos Associates.”
The 10-story hotel is adjacent the Monterey Conference Center and includes approximately 16,500 sq. ft. of meeting space, a spa, two restaurants and subterranean parking for 142 cars.