Beverly Hills, California – January 10, 2018 – Sonnenblick-Eichner Company announced today that it has arranged $110 million of first mortgage financing to refinance the InterContinental San Francisco, a 32-story, 550-room hotel located adjacent to San Francisco’s Moscone Convention Center in the South of Market district (SOMA) of downtown San Francisco, California. The Four-Diamond, AAA-rated hotel includes 43,000 square feet of meeting, banquet and pre-function space; Luce, a Michelin rated restaurant; a 10,000 square-foot spa and subterranean parking accommodating 180 valet spaces.
The interest rate for this 10-year, non-recourse, fixed rate loan is in the low 4% range, and was priced at less than 200 basis points over the swap rate. The loan was funded by a Wall Street investment bank.
“We received interest from both Life Insurance Companies and Wall Street investment banks. Given the interest rate floors instituted by most Life Insurance Companies, a securitized loan provided the best execution for the borrower,” said Sonnenblick-Eichner Company Principal David Sonnenblick.
Elliot Eichner, also a Principal of Sonnenblick-Eichner Company, added, “The new loan replaced an existing floating rate LIBOR-based loan. With the approximate 80 basis point increase in LIBOR over the last 12-month period in 2017, locking in a long term fixed rate loan provided the best alternative for the sponsor.”
