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Sonnenblick-Eichner Company Arranges $24 Million of First Mortgage Financing for Hotel deLuxe in Portland, Oregon
| Source: Sonnenblick-Eichner Company
LOS ANGELES, CA--(Marketwire - 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
Sonnenblick-Eichner Company (www.sonneich.com), is a Los Angeles-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.
