Goldman, Peachtree Provide Refinancing for Pacifica Hotels

Pacifica Hotels has received a nine-figure refinancing package for a portfolio of seven Southern California hotels.

Goldman Sachs supplied a five-year, fixed-rate commercial mortgage-backed securities loan for six of the hotels, while Peachtree Group provided a three-year loan secured by the Belamar Hotel Manhattan Beach, Commercial Observer and PERE Credit reported. Sonnenbick-Eichner Company arranged the $126.1 million financing deal.

The portfolio’s seven seaside Southern California hotels totals 601 rooms. The properties are located in San Diego, Pismo Beach, Venice and Manhattan Beach. The financing package includes a mix of three- and five-year fixed-rate non-recourse loans.

The hotels benefiting from the financing boost are the 126-room Wayfarer San Diego at 707 Pacific Beach Drive in San Diego; the 43-room Inn at Venice Beach at 327 West Washington Boulevard in Venice; the 68-room Kinney Venice Beach at 737 Washington Boulevard in Venice; the 82-room Spyglass Inn at 2705 Spyglass Drive in Pismo Beach; the 75-room Sandcastle Hotel on the Beach at 100 Stimson Avenue in Pismo Beach; the 80-room Cottage Inn by the Sea at 2351 Price Street in Pismo Beach; and the 127-room Belamar Hotel, part of the Tapestry Collection by Hilton, at 3501 North Sepulveda Boulevard in Manhattan Beach.

“Ultimately, the best execution was closing with two lenders for the portfolio,” Elliot Eichner, principal at Sonnenblick-Eichner Company, said of the deal, per Hotel Business. “The portfolio was competitively bid as evidenced by the level of interest that we received.”

The deal is indicative of the lending environment around lodging these days, according to Sonnenblick-Eichner principal Patrick Brown. “As demonstrated by this transaction and other hospitality assets that we are currently marketing for financing, there is a tremendous amount of capital available today for all types of hotels for both fixed- and floating-rate structures,” Brown said, per Hotel Business.

So far this year, Peachtree Group has been an active hotel lender by PERE Credit’s calculations. Earlier this month, the Atlanta-based firm announced a $32.6 million financing deal for Innisfree Hotels on a property in Fernandina Beach, Florida as well as a $51 million mortgage for Carlisle Group on the Hyatt Centric and Caption by Hyatt hotels in Memphis, Tennessee.

— Chris Malone Méndez