First Mortgage Financing for Provenance Hotels
|LOS ANGELES, CA – January 16, 2007 - Sonnenblick-Eichner Company announced
today that it has arranged $136,000,000 of first mortgage financing for
a portfolio of six full service hotels located in Washington, Oregon, and
Tennessee on behalf of Provenance Hotels. The portfolio includes the Hotel
Max in Seattle and the Sheraton Tacoma, both located in Washington; the
Hotel Preston in Nashville and the Westin Portland, Hotel Lucia, and the
Hotel deLuxe, all located in Portland, Oregon. The financing was
structured with three 10-year fixed rate loans priced in the low 100 bps
range over the 10-year treasury, including a significant interest-only
component, and three floating rate interim LIBOR-based facilities.
The interim loans will be used for a complete renovation of the Sheraton
Tacoma, and to replace renovation financing for the Hotel deLuxe. All of
the loans were provided by a Wall Street investment bank and were not cross-collateralized.
The 1,144-room portfolio included several market leading assets. The new Hotel Max in downtown Seattle, originally built in 1926, underwent a $9 million renovation and re-opened in 2005. The property is considered one of the hippest hotels in Seattle and was recently featured in Conde Nast and MTV. The Westin Portland (pictured at left), Hotel Lucia, and Hotel deLuxe are all located within the Portland Central Business District. The Westin is regarded as one of the best performing hotels in the state. The Hotel Lucia was originally built in 1909 and was completely renovated and re-opened in 2002. Hotel deLuxe recently completed a $10 million renovation and re-opened in May 2006. The Sheraton Tacoma, located adjacent to the Greater Tacoma Convention and Trade Center, is the dominant hotel in downtown Tacoma, Washington. The hotel is undergoing a $16 million renovation and will be re-named the Hotel Murano.
Elliot Eichner, a Principal of Sonnenblick-Eichner Company commented, “We were successful in securing financing on this transaction from one lender who was able to provide all the structures required by the borrower. As a result, this provided for tremendous efficiency in execution and economies of scale associated with the costs of closing such a large and complicated transaction. ”
Patrick Brown, also a principal of Sonnenblick-Eichner Company, added, “The highly structured non-recourse LIBOR-based financings were all competitively priced in the mid-100s over LIBOR with interest-only periods of up to three years.”
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.
About Provenance Hotels
Provenance Hotels (www.provenancehotels.com) conducts a wide array of services in the hotel industry that include developing, acquisitions and operating hotels nationwide. It strategically works with both independently owned and nationally affiliated brands with an emphasis on mid-sized upscale properties. It passionately specializes in developing and redeveloping boutique urban hotels with a distinct art direction, such as the Hotel Lucia and Hotel deLuxe in Portland, Oregon, and the Hotel Max in Seattle, Washington. Provenance Hotels was formerly Aspen Hotel Group.
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