Sonnenblick-Eichner Co. has arranged $19.5 million of first mortgage debt on behalf of Valencia Hotel Group to refinance the Texican Court hotel in Irving, Texas. The non-recourse five-year, fixed-rate loan was funded by a Wall Street investment bank. The loan is interest-only for the entire term at an interest rate of 7.74 percent, which included a buydown of the rate required by the lender.
Built in 2019, the 152-room upscale boutique hotel has a retro-aesthetic design of the midcentury motor court with elements inspired by “Old Texas” architecture. Amenities include a full restaurant, poolside bar, 3,228 square feet of indoor meeting space, 9,028 square feet of outdoor event space, a fitness center, swimming pool, outdoor firepits and a beer garden. The property is part of the Urban Center of Las Colinas, a 12,000-acre master planned development with approximately 35.8 million square feet of office space.
“This interest only, fixed-rate refinancing allowed our client to pay off their regional bank construction loan, which was a floating rate SOFR-based facility with amortization, allowing for a significant increase in cash flow to the partnership,” David Sonnenblick, a principal of Sonnenblick-Eichner Co., said in a statement.
“We had 18 financing quotes on this transaction and we successfully closed this financing at a debt yield of less than 12 percent,” added Patrick Brown, another principal with the company.