Beverly Hills, CA – January 13, 2022 – Sonnenblick-Eichner Company has arranged $39 million of non-recourse interim leasehold first mortgage financing for Moxy Portland Downtown, a 197-room hotel located in the West End District of downtown Portland, OR.
The hotel opened in March 2021 and consequently has limited operating history. Proceeds from this financing were used to pay off the construction loan, provide funds for an interest reserve as well as closing costs and fees. The five-year LIBOR-based floating rate loan was sized to approximately 76% of total project costs. The property was developed and is managed by Graves Hospitality, and is owned in partnership with KCB Real Estate.
Amenities at the hotel include a lobby bar, lounge and a state-of-the-art 24-hour fitness center. The hotel is located in Portland’s West End District between the downtown retail core and Portland’s iconic Powell’s City of Books at the edge of the Pearl District. The West End District has emerged as a vibrant center of creativity, fashion and nightlife. The area is also home to a growing number of local and international design shops, fashion boutiques, restaurants, cafés and hotels. Moxy Hotels (www.MoxyHotels.com) is Marriott International’s millennial-focused, lifestyle brand that is fresh and innovative, combining stylish design and approachable service at an affordable price point.
Elliot Eichner, a Principal of Sonnenblick-Eichner Company, commented,
“Despite the fact that the hotel had limited operating history and coupled with the complexities inherent in leasehold financing, we were successful in structuring a loan that will provide time for the hotel to stabilize.”
Patrick Brown, also a Principal of Sonnenblick-Eichner Company, added:
“As our experience dictates with financing hotels coming off of construction loans, this loan was competitively bid for a property with limited operating history. We are currently marketing loan requests, including fixed and floating rate, as well as construction loans, and are seeing tremendous demand within the sector.”