in Financing for Two Historic Hotels
|Providence, RI, May 3, 2004 - Sonnenblick-Eichner
Company announced today that it has arranged $43.35 million in first mortgage
financing for two historic hotels owned by Historic Hotel Partners of Providence
LP, an affiliate of Grand Heritage Hotel Group.
Sonnenblick-Eichner arranged $30,500,000 in first mortgage financing
for the landmark Providence Biltmore hotel in Providence, Rhode Island.
Proceeds of the loan are being used to pay off an existing bridge loan,
to finance the build-out of the McCormick & Schmick's restaurant, as
well as to fund planned capital improvements. In addition,
loan proceeds will be used to complete a renovation to rooms and public
spaces by late 2005.
Sonnenblick-Eichner Company also announced today that is has arranged $12,850,000 of first mortgage acquisition and renovation financing for The Governor Hotel, a full-service luxury hotel and historical landmark located in downtown Portland, Oregon.
Proceeds of the loan will be used for capital improvements, including the relocation and extensive, renovation of the lobby along with the restoration of the magnificent, 10,000-square-foot, 1900's-era ballroom located on the fourth floor to its original grandeur. Jake's Grill, part of the highly successful McCormick & Schmick's restaurant family, will also expand within the hotel.
Elliot Eichner, principal of Sonnenblick-Eichner Company commented, "We were successful in arranging a facility that provided maximum leverage while the property's current cash flow is at a debt service coverage ratio below 1.0X. The lender underwrote the transaction based on improved future cash flows post renovation and improved performance, due to our client's expertise in repositioning hotels".
Originally completed in 1909 and extensively renovated in 1986 and 1991, The Governor Hotel is an architecturally significant building listed on the National Register of Historic Places. The property is a 6-story, 100-room full service luxury hotel with a restaurant and bar, ample meeting areas and a fully-equipped spa and wellness center. Located in the heart of Portland's financial and retail Central Business District, the hotel has been awarded the "Four Diamond" rating by the American Automobile Association - one of only eight hotels in the state of Oregon to receive this designation.
Patrick Brown, Executive Director, said "The lender was particularly well suited for this structured finance due to their depth of knowledge in hospitality operations and recognized the value-added potential represented by our client. Their flexibility in dealing with so many moving parts was key in choosing them to finance the property".
The hotel is connected to the Princeton Building, which was completed in 1923 and remodeled in 1984 and 1991. Currently serving as the hotel's West Wing, the Princeton Building is a classic historical landmark building, modeled after the Italian Renaissance décor of the Farnese Palace in Rome. It houses office space, meeting areas and a health club.
Historic Hotel Partners of Providence LP, an affiliate of Grand Heritage
Hotel Group (GHHC), is one of the nation's premier owner-operators of historic
Sonnenblick-Eichner Company is recognized for its expertise in marketing institutional real estate for sale and providing capital for all product types including retail, hospitality, industrial and multifamily. Based in Los Angeles, the company specializes in arranging structured finance for acquisition, construction and permanent loans, interim and mezzanine financing as well as joint-venture equity transactions. Since its inception in 2000, Sonnenblick-Eichner has completed transactions valued in excess of $1.5 billion.
|Also See:||Sonnenblick-Eichner Company Arranges $22 Million of Permanent Financing for the Maui Coast Hotel, Maui, Hawaii / December 2003|