Sonnenblick-Eichner Company arranged $110 million of first mortgage financing to refinance the InterContinental San Francisco, a 32-story, 550-room hotel located adjacent to San Francisco’s Moscone Convention Center in the South of Market district of downtown San Francisco.
The hotel includes 43,000 square feet of meeting, banquet and pre-function space; Luce, a Michelin-rated restaurant; a 10,000 square-foot spa and subterranean parking accommodating 180 valet spaces.
The interest rate for this 10-year, non-recourse, fixed-rate loan is in the low 4-percent range, and was priced at less than 200 basis points over the swap rate. The loan was funded by a Wall Street investment bank.
“We received interest from both Life Insurance Companies and Wall Street investment banks. Given the interest rate floors instituted by most Life Insurance Companies, a securitized loan provided the best execution for the borrower,” David Sonnenblick, principal of Sonnenblick-Eichner Company, said in a statement.
“The new loan replaced an existing floating rate LIBOR-based loan," Elliot Eichner, also a Principal of Sonnenblick-Eichner Company, said in a statement. "With the approximate 80 basis point increase in LIBOR over the last 12-month period in 2017, locking in a long term fixed-rate loan provided the best alternative for the sponsor.”
Sonnenblick-Eichner Company is a Beverly Hills-based real estate investment banking firm that specializes in arranging structured finance for acquisition, construction and permanent loans, interim and mezzanine financing as well as joint-venture equity transactions.