Redondo Beach Hotel secures $ 38 million loan
The Portofino Hotel & Marina, a 161-room hotel in Redondo Beach, received a loan of $ 38 million.
The five-year variable rate loan replaces a maturing loan on the property.
Sonnenblick-Eichner Co. arranged interim financing for the first mortgage lease.
The Portofino Hotel & Marina has a full-service restaurant and lounge, lobby bar, outdoor swimming pool, fitness center, 181-room marina slides, 19 apartments and a meeting and event space.
“We were able to put the lender at ease with the ramping up of the property to pre-Covid levels as well as the short term remaining on the ground lease,” said Elliot Eichner, director of Sonnenblick-Eichner Co. , in a statement.
In a land lease, different entities own the land and the building or improvements to the land. This allows the landowner to get monthly rent without having to make any upgrades. And when the lease, which is usually long term, is over, they get all the improvements to the land.
A building owner, on the other hand, obtains property in desirable and often difficult to acquire areas without having to pay for the land itself.
Land leases are common in areas like Marina del Rey.
“Although lease financing can present underwriting challenges, we have been able to attract several institutional lenders interested in providing this financing,” said Patrick Brown, principal of Sonnenblick-Eichner Co., in a statement.
There has been a wave of loans announced for other properties in LA
Columbia Pacific Advisors recently provided a $ 27 million bridge construction completion loan to recapitalize the Hyatt Hotel Nue at 1525 N. Cahuenga Blvd. at Hollywood.
The hotel is owned by S3D Partners. When completed, it will have 64 rooms, a restaurant, rooftop bar, lounge and swimming pool, and underground parking.
Sonnenblick-Eichner Co., meanwhile, arranged a $ 30 million refinancing for an office building in Manhattan Beach.
The 10-year interest-only loan property is located at 1888 Rosecrans Ave .. This is a 78,540 square foot building located in Continental Park, which is owned by Continental Development Corp, based in El Segundo.
And a 122-unit multi-family building located at 269 S. Mariposa Ave. in Koreatown received a mortgage loan of $ 41.5 million. The variable rate loan has an initial term of three years which can be extended for another two years.
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