| 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.
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
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. |
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.
