SOURCE: Sonnenblick-Eichner Company

December 04, 2007 11:00 ET

Sonnenblick-Eichner Company Arranges $24 Million of First Mortgage Financing for Hotel deLuxe in Portland, Oregon

LOS ANGELES, CA--(Marketwire - December 4, 2007) - Sonnenblick-Eichner Company (www.sonneich.com) announced today that it has arranged $24,000,000 of first mortgage financing for the Hotel deLuxe located in Portland, Oregon. The financing was 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. The loan also includes an earn-out provision allowing the borrower to capitalize on increasing cash flow as the property reaches stabilization.

Hotel deLuxe is an 8-story, 130-room boutique, full-service hotel that recently completed a $10 million renovation and re-opened in May 2006. The hotel, with its retro 1960s "Hollywood" theme, is the creation of Portland-based Provenance Hotels (www.provenancehotels.com), and was recently elected to the Condé Nast Travel Magazine's Top 100 Hotels in the U.S.

Elliot Eichner, principal of Sonnenblick-Eichner Company, commented, "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."

David Sonnenblick, also a principal of Sonnenblick-Eichner Company, added, "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."

About Sonnenblick-Eichner Company

Sonnenblick-Eichner Company (www.sonneich.com), is a Los Angeles-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 retail, office, hospitality, industrial, and multifamily properties.

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