Sonnenblick-Eichner Company, on behalf of Noble House Hotels & Resorts, has arranged $82.425 million of fixed rate first mortgage financing for the Ocean Key Resort & Spa in Key West, FL.
Ocean Key Resort and Spa is a 100-room, full-service, waterfront resort recently honored by Forbes as the Best Luxury Resort in Key West.
Proceeds from the five-year, non-recourse loan priced in the low 5% range, will be used to pay off and defease the existing loan and fund a $10.5 million renovation of the property. The life insurance company loan is interest-only for the entire term.
Amenities at the resort include a full-service restaurant, an oceanfront pool with cabanas and a poolside bar and spa. The resort also includes Sunset Pier and the Sunset Pier Restaurant and Bar, one of Key West’s most popular venues for dining and entertainment, offering sunset views over the Gulf of Mexico.
“The borrower decided to refinance an existing loan that was maturing in 2025 since the defeasance premium declined almost 74% since the beginning of the year,” said Sonnenblick-Eichner Principal Elliot Eichner. “The life company execution coupled with the view that the cost of capital is likely to continue to increase in the future also factored into the decision to refinance at this time.”
“Given the asset class and excellent sponsorship, we were able to attract multiple insurance company lenders who had an interest in providing financing,” added Patrick Brown, also a Principal of Sonnenblick-Eichner Company.
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 hospitality, retail, office, industrial, and multifamily properties.
About Noble House Hotels & Resorts
The Noble House Hotels & Resorts portfolio is a collection of 25 luxury and upscale hotels, resorts, and experiences across North America – all designed for discerning travelers seeking to escape the daily routine. Noble House can be trusted to unlock the most authentic experiences in the most compelling destinations. This promise is delivered through their carefully curated collection that pairs boutique local charm with consistent high service and comfort standards. All concepts within their collection offer immersive, active adventure experiences that bring out the best of their destinations. Headquartered in Seattle, their family-owned business philosophy creates value for each concept’s community, environment, ownership, staff, and guests. The portfolio includes: over 75 restaurants, bars, and lounges; the Napa Valley Wine Train; a collection of spas, marinas, and private residences throughout the U.S., Canada, and Mexico; a range of beachfront resorts from California to Florida; luxury retreats in Jackson Hole, Wyo., British Columbia, and Colorado; and award-winning urban hotels in Seattle and San Francisco. For more information, visit www.noblehousehotels.com or call 877.NOBLE.TRIP.