LUBBOCK, Texas – (Realty News Report) – 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.
The hotel is located two blocks from the city’s convention center and is the closest hotel to the $158 million Buddy Holly Performing Arts Center, which opened in 2021.
Designed by Houston-based Rottet Studio, Cotton Court features a retro-aesthetic design with architectural elements inspired by Lubbock’s historic cotton industry. Amenities at the hotel include 4,489 SF of indoor meeting space and a 20,772 SF courtyard area featuring outdoor fireplaces and fire pits with seating.
The hotel’s Midnight Shift, a restaurant, bar and live music venue, pays homage to Lubbock’s Rock ‘N Roll roots which are celebrated at the Buddy Holly museum. The Midnight Shift” is the name of a B-side song Holly recorded in 1956.
Sept. 11, 2023 Realty News Report Copyright 2023
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File: Refi for Valencia Hotel Lubbock
Photo courtesy Sonnenblick-Eichner Company