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Marriott Monterey Refi'd with $60M Loan

MONTEREY, CA-San Carlos Associates recaptures "a bunch" of equity and gains "tremendous" cash flow from the 341-room asset, according to the arranger, Sonnenblick-Eichner Co.

By Brian K. Miller | Updated on September 14, 2006

MONTEREY, CA-The owner of the Marriott Monterey Hotel has refinanced the 341-room property with a $61.5 million loan. The loan has allowed San Carlos Associates to recapture equity while increasing the amount of cash thrown off by the property, according to Los Angeles-based Sonnenblick-Eichner Co., which arranged the financing.

San Carlos Associates includes investors from Monterey and Seattle. The 10-year, fixed-rate, no-interest loan is priced in the low 100-basis-point range over the 10-year treasury and is for 75% of the property’s perceived value. The previous financing was less leveraged and was not interest-only.

“They realized a bunch of equity they had and, due to the interest-only component, a tremendous amount of cash flow,” S-E principal David Sonnenblick tells GlobeSt.com.

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