Hotel Portfolio Lands $236M CMBS

LOS ANGELES—Provenance Hotels has secured a $236 million loan through a CMBS lender for a seven-property hotel portfolio in the Pacific Northwest and Nashville, TN. The funds were used to purchase the properties in conjunction with Provenance Hotel Partners Fund I, a $525 million investment vehicle.

“They were looking for long term fixed rate financing given where interest rates were at the time,” Elliot Eichner, a principal at Sonnenblick-Eichner Co., tells GlobeSt.com. “They had loans that were maturing in 2016 and 2017, so it was economically beneficial to pay the prepayment associated with the existing loans and at the same time not risk the possibility of higher interest rates in the future.” Sonnenblick-Eichner secured the funds on behalf of the borrower.