BEVERLY HILL, CA—Sonnenblick-Eichner Co. 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-4% 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 Co. 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 company Principal Patrick Brown. “The fixed, low-interest-rate loan we arranged more than offset the cost of the prepayment fee over the life of the loan.”