Sonnenblick-Eichner Company has arranged a $75 million refinancing for the Marriott Monterey hotel in downtown Monterey. The new first mortgage replaces existing debt on the property and was structured as a non-recourse, fixed-rate, five-year loan. The financing is interest only for the full term and was funded by a Wall Street investment bank, according to the firm.
Principal Elliot Eichner of Sonnenblick-Eichner Company said the financing process attracted notable lender interest. He reported receiving 19 competitive loan quotes for the assignment, which he attributed to both ample liquidity in the market and the institutional quality of the hotel. The firm ultimately selected and closed on a five-year, interest-only execution at a credit spread in the low 200s, resulting in an all-in coupon for the borrower of less than 6%.
Principal Patrick Brown noted that this transaction continues a longstanding relationship with the hotel owner. He described the new mortgage as the third permanent loan Sonnenblick-Eichner has arranged on this property for the same borrower, citing it as an example of the firm’s repeat business with existing clients. While the lender’s name was not disclosed, the deal underscores ongoing appetite among capital providers for branded, full-service hospitality assets in established destinations.
The Marriott Monterey is a 341-key, full-service hotel positioned across from the Monterey Conference Center in the city’s downtown core. The property includes 16,500 square feet of meeting and event space, supporting both group and corporate demand. On-site amenities also feature a fitness center, outdoor pool and Jacuzzi, which complement the hotel’s location near the conference facility and other local attractions.
The combination of institutional-quality sponsorship, a major flag, and a central location adjacent to the Monterey Conference Center contributed to the financing outcome described by Sonnenblick-Eichner. With strong lender interest reflected in the 19 loan quotes and a sub-6% all-in rate on a non-recourse, interest-only structure, the transaction highlights how select hospitality assets continue to secure competitive terms in the current lending environment.
