BEVERLY HILLS, Calif., Dec. 05, 2017 (GLOBE NEWSWIRE) -- Sonnenblick-Eichner Company has secured $22 million of interim first-mortgage financing for the Shops at the Pier, on the renowned beachfront, The Strand, in Hermosa Beach, California. The property is owned by a joint venture comprised of Portland, Oregon-based Provenance Hotels and Bolour Associates, Beverly Hills, California.
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Located at the base of the Hermosa Beach Pier, the Shops at the Pier is a mixed-use project, which includes 18,192 square feet of fully leased retail space and nine apartment units.
Hermosa Beach is an affluent beach community in Southern California, which attracts millions of visitors throughout the year. The city plays host to a variety of national and international lifestyle sporting events and is home to Fiesta Hermosa, Southern California’s largest Arts and Crafts fair.
Loan proceeds are being used to refinance existing debt and fund costs associated with a planned redevelopment of the 40,000 square-foot site into a 100-room, luxury boutique hotel.
“With the debt yield being less than 5%, we were able to arrange attractive interim financing from a private debt fund by demonstrating the intrinsic value associated with the Sponsor’s planned hotel on one of the last remaining beachfront parcels in Los Angeles’ South Bay,” said David Sonnenblick, principal of Sonnenblick-Eichner Company.
“Given the excellent sponsorship and location, we were able to attract multiple competitive financing quotes. Our client ultimately chose a lender with the most flexibility within the loan structure to accommodate their business plan, which includes completing the entitlement process for the hotel development,” commented Elliot Eichner, also a Principal of Sonnenblick-Eichner Company.
About Provenance Hotels
Founded in 1985 and headquartered in Portland, Ore., Provenance Hotels (www.provenancehotels.com) specializes in financing, developing and operating award-winning independent hotels with distinct and deeply integrated art stories. The portfolio includes Hotel deLuxe, Hotel Lucia, Sentinel, the Heathman Hotel and Dossier in Portland, Hotel Max and Hotel Theodore in Seattle, Hotel Murano in Tacoma, Wash., the Old No. 77 Hotel & Chandlery in New Orleans, and Hotel Preston in Nashville. Provenance Hotels will open Woodlark in Portland, Ore. in summer 2018.
About Bolour Associates
Bolour Associates (www.bolourassociates.com) is a privately-owned real estate investment, development and finance company. With 35 years of industry expertise, the firm has a solid track record of creating value through innovative real estate strategies. Our associates execute complex real estate transactions and employ a creative approach to generating sustainable growth. Our commitment to the highest standards of integrity is the hallmark of our business. Headquartered in Los Angeles, Bolour Associates is a leader in the commercial real estate market with a focus in California and the southwest regions of the United States.
About Sonnenblick-Eichner Company
Sonnenblick-Eichner Company (www.sonneich.com) is a Beverly Hills-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.
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