Beverly Hills-based real estate investment firm Sonnenblick-Eichner Co. has arranged $22 million of non-recourse first mortgage financing for the leasehold interest in the Doubletree by Hilton Los Angeles-Commerce, a 201-room hotel located in Commerce.
The five-year loan was placed with an international money-center bank at a fixed interest rate of 5.9% for the entire term. Proceeds were used to pay off a maturing commercial mortgage-backed securities loan and provided for a return of equity to the partnership.
Amenities at the hotel include a full-service restaurant and bar and approximately 9,000 square feet of meeting and banquet space. The hotel also has an outdoor pool and jacuzzi, fitness center, business center and 420 surface parking spaces.
“We were successful in arranging a five-year fixed-rate loan, which in this market is a preferred execution given the high short-term (secured overnight financing rate),” said Elliot Eichner, a principal of Sonnenblick-Eichner Co., in a statement. “Fixing the rate mitigates the risk of increasing interest rates, as well as eliminating the need to purchase an interest-rate cap.”
“We were able to identify a lender that spent the time to work through and understand the complexities associated with leasehold financings,” added Patrick Brown, a principal of Sonnenblick-Eichner Co.
Sonnenblick-Eichner Co. has been busy. In June, it provided $30 million in first-mortgage financing for Fisker Inc.’s corporate headquarters, a 78,540-square-foot class A building in Manhattan Beach. It also arranged $276 million of construction and permanent financing in March for a new corporate headquarters and training facility in El Segundo that will be leased to the Los Angeles Chargers.