$54M Finances Hotel Renovation, Replaces Former Loan

ANAHEIM, CA-Owners of the Sheraton Park Hotel at the Anaheim Resort have landed a new loan of $54 million to renovate the property, according to Sonnenblick-Eichner Co. of Century City. The financing replaces a previous loan, also arranged by Sonnenblick-Eichner, on behalf of Concord, MA-based Western Hotel Properties LLC.The Sheraton Park Hotel at the Anaheim Resort is a 490-room property at 1855 S. Harbor Blvd. that previously operated as the 500-room Coast Anaheim Hotel. Western Hotel Properties acquired it last year and is spending about $60,000 per room to renovate the hotel and convert the 13-story property to the Sheraton flag.The new non-recourse loan substantially lowers the cost of capital and generates significant additional proceeds, according to Sonnenblick-Eichner's Elliot Eichner. According to Patrick Brown, also a principal of Sonnenblick-Eichner, the costs associated with refinancing within such a short time were more than offset by the savings.The renovation program calls for fully renovated guest rooms; a club lounge floor, 24,000 sf of meeting and banquet facilities, a new restaurant and lounge, an upgraded lobby and main entrance, a new porte cochère exterior, street-side landscaping, an executive business center and a freestanding Morton's Steakhouse. Upon completion, the property will be the newest AAA 3-Diamond full-service hotel in Anaheim.The hotel operates on a long-term ground lease with the city of Anaheim, with the lease running until 2042, according to Anaheim City officials. The hotel's new flag, Sheraton, is a brand of White Plains-based Starwood Hotel & Resorts.