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Mortgage Financing for Hotel deLuxe in Portland, Oregon |
LOS ANGELES, CA--(December 4, 2007) - Sonnenblick-Eichner Company (www.sonneich.com) announced today that it has arranged $24,000,000 of first mortgage financing for the Hotel deLuxe located in Portland, Oregon. The financing was a 10-year fixed rate loan priced at 200 bps over the 10-year treasury. The loan is interest-only for the initial two years of the term. The loan also includes an earn-out provision allowing the borrower to capitalize on increasing cash flow as the property reaches stabilization. Hotel deLuxe is an 8-story, 130-room boutique, full-service hotel that recently completed a $10 million renovation and re-opened in May 2006. The hotel, with its retro 1960s "Hollywood" theme, is the creation of Portland-based Provenance Hotels (www.provenancehotels.com), and was recently elected to the Condé Nast Travel Magazine's Top 100 Hotels in the U.S. Elliot Eichner, principal of Sonnenblick-Eichner Company, commented, "Despite the turmoil and volatility in the capital markets, we were successful in structuring a loan providing for maximum proceeds, plus an earn-out component. The interest rate was in the low 6 percent range, and the interest-only component provides greater cash flow as the property is ramping up toward stabilization." David Sonnenblick, also a principal of Sonnenblick-Eichner Company, added, "With all the negative news surrounding the capital markets for real estate, this loan proves that there is still liquidity in the market for transactions with a good story and strong sponsorship." About Sonnenblick-Eichner Company
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Contact:
Colette Schamet
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