Sonnenblick-Eichner Company announced today that it has arranged $39,000,000 of non-recourse interim leasehold first mortgage financing for Moxy Portland Downtown, a 197-room hotel located in the West End District of downtown Portland, Oregon.
The hotel opened in March of this year and consequently has limited operating history. Proceeds from this financing were used to pay off the construction loan, provide funds for an interest reserve as well as closing costs and fees. The 5-year LIBOR-based floating rate loan was sized to approximately 76% of total project costs. The property was developed and is managed by Graves Hospitality, and is owned in partnership with KCB Real Estate.
Amenities at the hotel include a lobby bar, lounge and a state-of-the-art 24-hour fitness center. Located in Portland’s West End District between the downtown retail core and Portland’s iconic Powell’s City of Books at the edge of the Pearl District, the West End District has emerged as a vibrant center of creativity, fashion and nightlife. The area is also home to a growing number of local and international design shops, fashion boutiques, restaurants, cafés and hotels.Moxy Hotels (www.MoxyHotels.com) is Marriott International’s millennial-focused, lifestyle brand that is fresh and innovative, combining stylish design and approachable service at an affordable price point.
Elliot Eichner, a Principal of Sonnenblick-Eichner Company, commented, “Despite the fact that the hotel had limited operating history, coupled with the complexities inherent in leasehold financing, we were successful in structuring a loan that will provide time for the hotel to stabilize.”
Patrick Brown, also a Principal of Sonnenblick-Eichner Company, added: “As our experience dictates with financing hotels coming off of construction loans, this loan was competitively bid for a property with limited operating history. We are currently marketing loan requests, including fixed and floating rate, as well as construction loans, and are seeing tremendous demand within the sector.”
About Sonnenblick-Eichner Company
Sonnenblick-Eichner Company (www.sonneich.com) is a Beverly Hills-based real estate investment banking firm that specializes in arranging structured finance for acquisition, construction and permanent loans, interim and mezzanine financing as well as joint-venture equity transactions. The company is recognized for its expertise in marketing institutional real estate for sale and providing capital for all product types including hospitality, retail, office, industrial, and multifamily properties.
About Graves Hospitality
Graves Hospitality turns ideas into action and Real Estate into enterprise. GH offers a comprehensive range of development and management services adeptly tailored to answer the unique needs of independent and branded hotels, resorts and restaurants as well as residential and commercial projects. The company’s development skills and management services, including sales, marketing, distribution, human resources and accounting, are honed by over 40 years of continued success. Consistently recognized as an industry leader, GH has developed and managed more than 100 hotels and restaurants, as well as residential and commercial developments. GH is passionate about providing owners, guests and associates with an unparalleled level of service and expertise. Partnering with smart, creative and sincerely enjoyable people and then fiercely maintaining those relationships, results in a positive synergy that naturally fosters success. GH takes great pride in being able to identify, develop, build and manage projects that create great profits for our investors. To learn more information about Graves Hospitality, visit www.graveshospitality.com.
About KCB Real Estate
KCB Real Estate is a family-owned real estate operating company that provides joint venture equity to acquire and operate a wide range of properties across the country. KCB partners with people who have high integrity and a strong history of successful real estate investments. KCB currently oversees over 70 properties across the United States with an asset value of over $1 billion, including hotels, apartment communities, healthcare facilities, shopping centers, offices and industrial buildings. KCB distinguishes itself by its philosophy of holding properties for the long term and its commitment to projects that serve the needs of the local community. For more information, visit www.kcbrem.com.
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