Real estate investment banking firm Sonnenblick-Eichner Company arranged $65 million of first mortgage debt for the refinancing of the 341-room Marriott Monterey Hotel in downtown Monterey, Calif.
The 10-year, fixed-rate financing was provided by a European Money Center bank and was underwritten at a debt yield below 10 percent.
“The widening spreads in the bond market made finding attractive long-term CMBS debt very challenging,” said Elliot Eichner, principal at Sonnenblick-Eichner Company. “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,” said Patrick Brown, also a principal of Sonnenblick-Eichner Company. “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 hotel is located adjacent to the Monterey Conference Center in the city's downtown retail district. The 10-story hotel includes approximately 16,500 square feet of meeting space, a spa, two restaurants and subterranean parking for 142 cars. Monterey is home to the Monterey Aquarium and Cannery Row and is near Pebble Beach Golf Links.