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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.”

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