Citigroup Provides $50M Refi for Luxury San Jose Hotel
Hotel Valencia on Santana Row features 216 rooms and is ranked as the second-best hotel in the city
By Brian Pascus October 14, 2025 12:15 pm
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Valencia Hotel Group has secured $50 million to refinance Hotel Valencia on Santana Row in San Jose, Calif., Commercial Observer has learned.
The 216-room, AAA-rated, Four Diamond Hotel was ranked as the second-best hotel in San Jose by U.S. News & World Report.
Citigroup provided the first mortgage, structured as a nonrecourse, fixed-rate, five-year loan, while Sonnenblick-Eichner Company arranged the transaction.
David Sonnenblick, principal at Sonnenblick-Eichner, emphasized in a statement that the firm received 16 offers from commercial banks, insurance companies and commercial mortgage-backed securities lenders for this specific refinancing, reflecting a healthy level of investment activity into the hospitality space.
Patrick Brown, also a principal of Sonnenblick-Eichner, said in a statement that the firm is currently receiving “multiple bids on all hospitality loans” in the current market.
“The debt markets continue to be extremely liquid for all types of hospitality transactions, including construction, bridge and permanent financing,” Brown added.
Hotel Valencia on Santana Row is located at 355 Santana Row in the Downtown San Jose area of Santana Row, an affluent residential and commercial district of West San Jose that features tree-lined streets, a mixed-use shopping district, and more than 1.7 million square feet of Class A office space.
The entire district spans 2.5 million square feet and generates 13 million visitors each year, according to Sonnenblick-Eichner.
Hotel Valencia on Santana Row opened in 2003 and features a fitness center, a rooftop pool and jacuzzi, an open-air interior courtyard, and approximately 1,188 square feet of indoor and outdoor meeting and event space.
Brian Pascus can be reached at bpascus@commercialobserver.com.
