LOS ANGELES, California—Sonnenblick-Eichner Company on behalf of Valencia Hotel Group has arranged $19.5 million of first mortgage debt to refinance the Texican Court hotel in Irving, Texas.
The non-recourse, five-year, fixed-rate loan was funded by a Wall Street investment bank. The loan is interest-only for the entire term at an interest rate of 7.74 percent, which includes a buydown of the rate required by the lender.
Built in 2019, the 152-room upscale boutique hotel has a retro-aesthetic design of the mid-century motor court with elements inspired by “Old Texas” architecture. Amenities include a restaurant, poolside bar, 3,228 square feet of indoor meeting space, 9,028 square feet of outdoor event space, a fitness center, a swimming pool, outdoor firepits, and a beer garden. The hotel has a central location in the Urban Center of Las Colinas, a 12,000-acre planned development offering approximately 35.8 million square feet of office space.
“This interest-only, fixed-rate refinancing allowed our client to pay off their regional bank construction loan, which was a floating rate SOFR-based facility with amortization, allowing for a significant increase in cash flow to the partnership,” said David Sonnenblick, principal of Sonnenblick-Eichner Company.
“We had 18 financing quotes on this transaction and we successfully closed this financing at a debt yield of less than 12 percent,” said Patrick Brown, principal of Sonnenblick-Eichner Company.
