X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PORTLAND, OR-Provenance Hotels, owned by local investor-developer Gordon Sondland, has refinanced the Hotel deLuxe with a $24-million loan, according to Sonnenblick-Eichner Co., which arranged the financing. Following a $10-million renovation, the eight-story, 130-room, 1960s Hollywood-themed boutique hotel here opened 18 months ago on the west side of the Downtown core as the newest of five hotels the company owns in Oregon and Washington.

The financing was a 10-year fixed rate loan priced at 200 basis points over the 10-year treasury. The loan is interest-only for the first 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.

“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,” says Sonnenblick-Eichner principal Elliot Eichner. Adds his business partner David Sonnenblick, “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.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.