January 27, 2016
Sonnenblick-Eichner Co. has reportedly arranged $236.7 million of first-mortgage refinancing for a seven-hotel portfolio owned and operated by Provenance Hotels. The portfolio totals 1,072 rooms, which are located primarily in Seattle and Portland.
According to Elliot Eichner, principal of Sonnenblick-Eichner, Provenance opted to refinance the majority of the loans prior to maturity, as “the cost of prepayment was mitigated by the lower cost of capital, and the risk associated with the potential of higher interest rates in the future.”
Sources say six of the properties received 10-year fixed-rate, non-resource loans, and Provenance Hotel Partners Fund I acquired the assets following the financing. The seventh hotel, the Roosevelt Hotel in Seattle, received a non-recourse, LIBOR-based loan.