Goldman Sachs, Peachtree Provide $126M Refi for Hotel Portfolio

Pacifica Hotels has secured $126.1 million to refinance a portfolio of seven Southern California hotels that hold a combined 601 rooms across San Diego, Pismo Beach, Venice and Manhattan Beach. 

Goldman Sachs supplied the five-year, commercial mortgage-backed securities (CMBS) loan for five of the hotels, while Peachtree Group provided a three-year loan secured by the Belamar Hotel Manhattan Beach, which is part of the Hilton brand in Manhattan Beach, Calif. 

Sonnenblick-Eichner Company arranged the financing. 

Elliot Eichner, a principal of Sonnenblick-Eichner, said in a statement that the portfolio experienced a competitive bid process and that it made most sense to use both Goldman and Peachtree to refinance the group of assets. 

“We were successful in sourcing financing from several capital providers,” Eichner said. “Ultimately, the best execution was closing with two lenders for the portfolio.”

The seven California hotels are the Wayfarer San Diego, a 126-room hotel at 707 Pacific Beach Drive in San Diego; Inn at Venice Beach, a hotel with 38 rooms and five suites at 327 West Washington Boulevard in Venice; Sandcastle Hotel on the Beach, a 75-room hotel at 100 Stimson Avenue in Pismo Beach; the Kinney Venice Beach, a 68-room hotel at 737 Washington Boulevard in Venice; Spyglass Inn, an 82-room inn at 2705 Spyglass Drive in Pismo Beach, a coastal city in Central California; Cottage Inn by the Sea, an 80-room inn at 2351 Price Street in Pismo Beach; and the Belamar Hotel Manhattan Beach, a 120-guest hotel at 3501 North Sepulveda Boulevard in Manhattan Beach, a city south of Los Angeles. 

Patrick Brown, another principal of Sonnenblick-Eichner, said the transaction demonstrates there is “a tremendous amount of capital available today for all types of hotels for both fixed- and floating-rate structures.”

Brian Pascus can be reached at bpascus@commercialobserver.com.