SOURCE: Sonnenblick-Eichner Company

July 08, 2008 11:00 ET

Sonnenblick-Eichner Company Arranges 90% Leasehold Construction Financing for a Specialty Shopping Center in Malibu, California

LOS ANGELES, CA--(Marketwire - July 8, 2008) - Sonnenblick-Eichner Company announced today that it has arranged a $20,000,000 leasehold construction loan for Malibu Lumber Shopping Center, located on the Pacific Coast Highway in Malibu, California. The loan, which was secured from a money center commercial bank, provides for up to 90% of the total project costs at an interest rate of LIBOR + 250 and limited borrower recourse.

Malibu Lumber Shopping Center is subject to a long term unsubordinated ground lease from the city of Malibu, and is being developed at a total project cost of nearly $700 a leasehold foot. The property will cater to both national and local tenants including J. Crew, Tory Burch and Theory.

The project, which is being developed in joint venture by Richard Weintraub and Richard Sperber, two prominent Los Angeles-based real estate entrepreneurs, has tremendous visibility on the Pacific Coast Highway and is located within close proximity to Pepperdine University and Malibu Colony, one of Los Angeles' most exclusive residential communities.

David Sonnenblick, principal of Sonnenblick-Eichner Company, commented, "Due to the property's excellent location, tenancy and sponsorship, we were able to negotiate a very attractive construction loan that provided for minimal cash equity from the developer and limited recourse."

Patrick Brown, also a principal of Sonnenblick-Eichner Company, added, "Despite the high loan per square foot, it is an encouraging sign that construction capital on such favorable terms can still be obtained for high quality transactions in today's difficult capital markets environment."

Other transactions recently completed by Sonnenblick-Eichner Company on behalf of Richard Weintraub include arranging a $51,200,000 acquisition loan for the Sportsmen's Lodge and Sportsmen's Lodge Hotel at Coldwater Canyon and Ventura Boulevard in Studio City, California, one of the most heavily traveled intersections in Los Angeles. This loan equated to approximately 90% of the total acquisition cost of the property.

About Sonnenblick-Eichner Company

Sonnenblick-Eichner Company (www.sonneich.com) is a Los Angeles-based real estate investment banking firm that specializes in arranging structured finance for acquisition, construction and permanent loans, interim and mezzanine financing as well as joint-venture equity transactions. The company is recognized for its expertise in marketing institutional real estate for sale and providing capital for all product types including retail, office, hospitality, industrial, and multifamily properties.

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