Sonnenblick-Eichner Arranges DeLuxe Deal in Portland

Sonnenblick-Eichner Company, the firm led by David Sonnenblick and Elliot Eichner, arranged $24 mil of first mortgage financing for the Hotel deLuxe, a stylish, boutique hotel located in Portland, Oregon. The eight-story, 130-room facility recently underwent a $10 mil renovation and re-opened its doors in May 2006. The hotel, with its retro 1960s “Hollywood” theme, is the creation of Portland-based Provenance Hotels and was recently elected to the Condé Nast Travel Magazine’s Top 100 Hotels in the U.S.


The financing consisted of a 10-year fixed-rate loan priced at 200 bps over the 10-year treasury. The loan is interest-only for the initial two years of the term and also includes an earn-out provision allowing the borrower to capitalize on increasing cash flow as the property reaches stabilization.

Eichner commented on the deal, “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. The interest rate was in the low 6 percent range, and the interest-only component provides greater cash flow as the property is ramping up toward stabilization.”

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source: rentv.com