REDMOND, WA—Sonnenblick-Eichner Company has arranged $65.2 million of first mortgage financing for the 149-room Hyatt House Seattle/Redmond and the 160-room Hyatt House Seattle/Bellevue.
The non-recourse 10-year fixed rate financing was priced in the low four percent range with interest-only payments for the first five years of the loan. The loans were not cross-collateralized.
"We had tremendous lender interest in these transactions from both Wall Street investment banks and life insurance companies," said Sonnenblick-Eichner Company principal Elliot Eichner. "The borrower chose a life insurance company execution giving them the ability to lock the rate at application while having the benefits of a portfolio lender."
"The borrower financed prior to their current loan maturity incurring a prepayment cost," added Patrick Brown, also a principal of Sonnenblick-Eichner Company. "The fixed low interest rate loan we arranged more than offset the cost of the prepayment fee over the life of the loan."
Sonnenblick-Eichner Company (www.sonneich.com) 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. The company is recognized for its expertise in marketing institutional real estate for sale and providing capital for all product types including retail, office, hospitality, industrial, and multifamily properties.