Beverly Hills, CA – January 15, 2020 – Sonnenblick-Eichner Company has arranged interim first mortgage leasehold financing for the Residence Inn by Marriott Walnut Creek, located in Walnut Creek, CA. The non-recourse LIBOR-based loan funded upon completion of construction and the opening of the hotel.
The Residence Inn by Marriott Walnut Creek is a 160-room, six-story, extended-stay hotel located in the heart of downtown Walnut Creek. The 77% loan-to-cost loan with a credit spread in the low 300s over LIBOR, provided a return of cash equity to the borrower and relieves them of the recourse obligations associated with the construction loan.
Amenities at the hotel include a breakfast dining area, 870 square feet of meeting space, an indoor pool, a fitness room, an outdoor patio and barbecue area, and parking for 144 cars. The hotel is located within minutes of the Walnut Creek BART station, which connects to San Francisco and the surrounding the Bay Area.
Elliot Eichner, a Principal of Sonnenblick-Eichner Company, commented, “We have financed numerous hotels upon completion of construction, or with limited operating history, allowing our clients to realize cash equity above the construction loan, eliminate recourse liability, and lower the cost of capital while providing for additional loan term for the property to stabilize.”
Patrick Brown, also a Principal of Sonnenblick-Eichner Company, added, “As we have found in similar hotel financings that we have completed in New York; Austin, Texas; Napa, California; and Seattle, Washington, this loan was competitively bid for a property with no operating history.”
