MONTEREY, CA—A 10-year, fixed-rate, $61.5-million first mortgage has been arranged by Sonnenblick-Eichner Co. for the undisclosed owner of the Marriott Monterey Hotel in downtown Monterey, CA. The loan is interest-only for its entire term with no amortization payments. It was priced in the low 100 basis points range over the 10-year Treasury. A European-based financial institution provided the loan. The 10-story, 341-room hotel is located next to the Monterey Conference Center and is a AAA-rated Four Diamond property. It contains 16,500 square feet of meeting space, a spa, two restaurants and subterranean parking for 142 automobiles. Several institutional lenders bid on the financing opportunity. According to Sonnenblick-Eichner, the borrower chose a loan that significantly increased its annual cash flow as a result of the interest-only structure.
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