LOS ANGELES, California—Sonnenblick-Eichner Company announced that it arranged $50 million of first mortgage leasehold financing for Valencia Hotel Collection to refinance its Hotel Valencia Santana Row in San Jose, California. The non-recourse, fixed-rate, five-year loan is interest-only for the term and priced at less than 7 percent. The loan was funded by an international money center commercial bank.
The 216-room hotel offers 11,188 square feet of indoor/outdoor meeting and event space, a fitness center, rooftop pool and Jacuzzi, and an open-air interior courtyard. Hotel Valencia Santana Row is the only hotel within San Jose’s Santana Row, a 2.5 million square-foot mixed-use development that attracts approximately 13 million visitors annually. It also includes more than 50 High Street retail shops, 35 restaurants, 662 rental apartments, 219 residential condominiums, and approximately 1.7 million square feet of Class-A office space.
“Reflecting the tremendous amount of liquidity that is in the market for hotel financing today, we had 16 offers from commercial banks, insurance companies, and CMBS lenders for this financing opportunity,” said Sonnenblick-Eichner Principal David Sonnenblick.
“The debt markets continue to be extremely liquid for all types of hospitality transactions, including construction, bridge, and permanent financing. We are obtaining multiple bids on all hospitality loans we are offering to the market,” added Patrick Brown, also a Principal of Sonnenblick-Eichner Company.”
