Refi for Valencia Hotel, Market briefs

In Lubbock, Texas, The Cotton Court, a hotel developed by Houston-based Valencia Hotel Group, has received a new refinancing deal, replacing the hotel’s construction loan.

Construction on the 165-room Lubbock hotel was finished in 2020, but the grand-opening was delayed until because of Covid.

Sonnenblick-Eichner Company has arranged $21 million of fixed-rate, first mortgage financing for the Cotton Court hotel, which is located on Broadway Street, about mile from Texas Tech University.

The five-year, fixed-rate loan is non-recourse and was funded by a Wall Street investment bank. The loan is interest-only for the entire term at an interest rate of 7.6 percent.

“We had over 20 offers for this financing opportunity, confirming that there remains a considerable amount of capital in the marketplace for quality transactions,” added Patrick Brown, a Principal of Sonnenblick-Eichner Company.