BEVERLY HILLS, CA / ACCESSWIRE / March 3, 2020 / Sonnenblick-Eichner Company has arranged first mortgage debt to refinance the Lone Star Court, a 123-room boutique hotel located within The Domain, a 303-acre master planned development in Austin, TX. The CMBS loan, funded by a Wall Street investment bank pays 3.49% interest only over the entire 10-year term. Loan proceeds were utilized to retire existing debt and provide working capital.
Hotel amenities include The Water Trough Restaurant and Bar, 1,933 square feet of meeting space, 3,341 square feet of outdoor event space, a fitness center, swimming pool, and 154 parking spaces. Lone Star Court is ranked 7th out of 216 hotels in Austin on TripAdvisor.
"There is a tremendous amount of capital in the market for all types of commercial properties. We received 21 bids on this financing opportunity from life insurance companies, debt funds, REITs and CMBS capital providers," said David Sonnenblick, a Principal of Sonnenblick-Eichner Company. "The ability to obtain a full-term interest only loan at a competitive credit spread, resulted in our client ultimately deciding to execute on a CMBS financing. This is the third hotel that we have financed in Austin, including the Austin Archer and Aloft Austin, both located within the Domain."
Elliot Eichner, also a Principal of Sonnenblick-Eichner Company, added: "We are seeing many of our clients paying off existing debt and the prepayment associated with the refinancing in order to obtain new long-term, low interest rate financing. Depending on the remaining term of the existing loan, the savings in debt service typically pays for the prepayment premium in the early years of the new loan. Refinancing also mitigates the risk of potentially higher interest rates when their existing loan matures."
About Sonnenblick-Eichner Company
Sonnenblick-Eichner Company (http://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.
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SOURCE: Sonnenblick-Eichner Company