Sonnenblick-Eichner Co. Secures $21M Refinancing for Palihotel Seattle
SEATTLE — Sonnenblick-Eichner Co. has arranged $21 million in non-recourse first mortgage leasehold financing for Palihotel Seattle. A partnership between Los Angeles-based Lighthouse Investments LLC and KCB Management is the borrower.
Operated by Palisociety, the hotel features 96 guest rooms. Originally built in 1895, the newly renovated property opened in November 2018 and the initial funding was sized to a debt yield less than 6 percent on the first year’s projected net-operating income. The five-year interim loan also provided for a return of equity above the existing construction loan, as well as significantly reducing the cost of capital for the borrower. An institutional debt fund provided the LIBOR-based loan.