Sonnenblick-Eichner arranges financing for four-hotel portfolio

Archer Hotel Austin (Archer Hotel Austin)

Sonnenblick-Eichner Company has arranged $92 million in first mortgage debt to refinance a portfolio of four hotels totaling 592 rooms.

The financing consisted of four separate non-recourse, non-cross collateralized loans from three different lenders. Sonnenblick-Eichner Company was able to arrange for a money center commercial bank to provide 10-year fixed financing on each of the two Hyatt House properties, and LIBOR-based floating rate financing from two regional banks on the Archer and Hilton Garden Inn properties.   

The portfolio is comprised of the following hotels:

“The financings were all competitively bid,” said Elliot Eichner, Sonnenblick-Eichner principal. “The recently completed Archer Austin closed with only three months of operational history. The loan also provided for an earn-out allowing the borrower an opportunity to increase loan proceeds as the property ramps up.”

“The various financing structures met our client’s expectations in terms of locking in advantageous long-term fixed rates on two of the assets, and a flexible LIBOR-based facility on the other properties,” added Patrick Brown, also a principal of Sonnenblick-Eichner Company.