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.
The 18-story, 291-room full-service
luxury hotel is located in the heart of downtown Providence. Built
in 1922, the AAA Four Diamond Providence Biltmore is known as the "Grand
Dame of Providence" and is situated in the heart of the burgeoning downtown
Providence business district. In addition to the largest guestrooms
in the state, the hotel features approximately 19,000 square feet of meeting
space and the most successful Starbucks in Providence. McCormick
& Schmick's restaurant is under construction and should open in the
second quarter.
"The borrower was able to take |
Providence Biltmore Hotel
11 Dorrance St.
Providence, Rhode Island |
advantage of today's low cost of capital with a 7-year fixed rate loan
before stabilization of the hotel", said Elliot K. Eichner, principal of
Sonnenblick-Eichner Company.
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
boutique hotels.
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About Sonnenblick-Eichner
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. |