Hotel Owner Obtains $41M Loan

Sonnenblick-Eichner Co. arranged $41 million of first-mortgage financing for Grand Ventures Hotel LLC, the owner of Hotel Eastlund in Portland, OR. The non-recourse, 10-year, fixed-rate loan was provided by an international money center bank. The hotel at 1021 N.E. Grand Ave. has undergone renovation and rebranding.

According to Sonnenblick-Eichner’s Elliot Eichner, the 168-key hotel also had a limited operating history. “By underwriting the most recent trailing 12-month cash flow, we were able to maximize loan proceeds. We were also successful in negotiating two years of interest-only payments,” he said.

Hotel Eastlund is a six-story boutique hotel with amenities including 4,800 square feet of meeting and banquet space, business and fitness centers, a rooftop deck, and the on-site Altabira City Tavern and Citizen Baker. The current owner acquired the asset, a former Red Lion Hotel, in 2013.

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