Wall Street Investment Bank Funds Residence Inn Non-Recourse Loan
- The Residence Inn by Marriott in Walnut Creek, California, has secured $26 million in refinancing for its 160-key property.
- The new financing consists of a non-recourse, fixed-rate loan with a five-year term.
- This fixed-rate note replaces a previous interim bridge loan that featured a floating interest rate.
The Residence Inn by Marriott in Walnut Creek, California, has secured $26 million in refinancing for its 160-key property. The transaction was overseen by the Sonnenblick-Eichner Company and funded by a Wall Street investment bank.
The new financing consists of a non-recourse, fixed-rate loan with a five-year term. According to the deal terms, the loan is interest-only for the duration of the term.
This fixed-rate note replaces a previous interim bridge loan that featured a floating interest rate. The property is located in Walnut Creek, which is situated near San Francisco.
Loan Structure and Terms
The $26 million refinancing provides the hotel with a stabilized debt structure by moving away from the volatility of a floating-rate bridge loan. The use of a non-recourse structure means the lender’s primary security is the property itself rather than the personal assets of the borrowers.
The five-year term allows the owners of the 160-key extended-stay facility to maintain a predictable cost of capital through the fixed-rate arrangement. Because the loan is interest-only, the borrower is not required to pay down the principal balance during the five-year period.
Role of Sonnenblick-Eichner Company
The Sonnenblick-Eichner Company acted as the arranger for the refinancing. This transaction is part of a broader series of hospitality financing arrangements handled by the firm across California.
Other recent activities by the firm include the arrangement of $75 million in first mortgage financing for the 341-room Marriott Monterey in Monterey, California, which was funded on March 3, 2026. That loan also featured a non-recourse, fixed-rate, five-year, interest-only structure funded by a Wall Street investment bank.
on October 14, 2025, the firm arranged $50 million in first mortgage leasehold financing for the Hotel Valencia Santana Row in San Jose, California. That specific loan was priced at less than 7% and followed a similar non-recourse, fixed-rate, five-year, interest-only format.