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ANAHEIM, CA-The owner of the 490-room Sheraton Park Hotel has replaced a $54-million floating-rate renovation loan with a $65-million fixed-rate permanent loan for the leasehold interest in the property in a deal arranged by Sonnenblick-Eichner Co. of Los Angeles. Principal Patrick Brown of Sonnenblick-Eichner tells GlobeSt.com that the new loan achieves a number of objectives for the borrower: taking out the renovation loan, switching the financing from floating-rate to fixed rate and maintaining the interest-only feature of the previous loan for the entire 10-year term of the new financing.

Sonnenblick-Eichner also arranged the $54-million renovation loan for the borrower, Concord, MA-based Western Hotel Properties LLC, in 2006. Brown explains that the previous financing was intended primarily for renovations in connection with a flag change after Western Hotel bought the property, which formerly was known as the Coast Anaheim Hotel.

Following Western’s flag change and renovations, the property is now known as the Sheraton Park Hotel at the Anaheim Resort. According to Elliot Eichner, a principal of Sonnenblick-Eichner, what is significant about the new $65-million financing is that “we were able to maintain a 10-year interest-only structure in today’s volatile capital markets environment even though the hotel had only eight months of operating history as a Sheraton.”

Brown notes that the lender for the new $65-million loan is a Wall Street investment bank and that the financing attracted multiple quotes from institutional lenders because of the “excellent sponsorship and first class renovation” of the hotel. Western Hotel Properties spent $30 million on the renovations to the property in connection with rebranding it as a Sheraton.

The Sheraton Park Hotel at the Anaheim Resort is a 13-story full-service property on Convention Way, one block south of Disneyland and a block east of the Anaheim Convention Center. The property is encumbered by a long-term unsubordinated ground lease with the City of Anaheim.

The Sheraton Park includes a club lounge floor, 24,000 sf of meeting and banquet facilities, a restaurant and lounge, an executive business center and a freestanding Morton’s Steakhouse restaurant. It is the newest AAA Three-Diamond full-service hotel in Anaheim.

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