Sonnenblick-Eichner Company Arranges $21 Million Loan for Newly Renovated Palihotel Seattle

USA, Beverly Hills, California. May 16, 2019

Sonnenblick-Eichner Company announced today that it has arranged $21 million of non-recourse first mortgage leasehold financing, on behalf of a partnership between Los Angeles based Lighthouse Investments, LLC and KCB Management, for the 96-room Palihotel Seattle.

Operated by Palisociety, the hotel is located across the street from the world-famous Pike Street Market in downtown Seattle, WA. The newly renovated hotel opened in November of 2018 and the initial funding was sized to a debt yield less than 6% on the first year's projected net operating income. The five-year interim loan also provided for a return of equity above the existing construction loan, as well as significantly reducing the cost of capital for the borrower. The LIBOR-based loan was funded by an institutional debt fund.

Originally built in 1895, the building is both a city landmark and on the federal National Registry of Historic Places. The hotel was extensively renovated in 2017 and 2018. The downtown Seattle market and the Pike Place submarket, have been among the best performing hospitality markets in the country over the last several years.

"We were successful in securing multiple competitive financing quotes despite the fact that the hotel had recently opened and is in ramp-up. In addition to the complexities inherent in leasehold financing, the transaction included Historic Tax Credits, which we had to structure around," said Sonnenblick-Eichner Company Principal Elliot Eichner.

"We have had tremendous success in financing hotels that have recently completed construction, or at Certificate of Occupancy. This allows our clients to realize equity in the project, extend term, lower the cost of capital and quite often relinquish recourse obligations," added Sonnenblick-Eichner Principal Patrick Brown.


Palihotel Seattle
/ SLIDES
Tags: Sonnenblick-Eichner, Hotels, Hospitality, Finance, Debt, real estate, lending, CRE, refinance, Palihotel, Seattle, loan

About Sonnenblick-Eichner Company

Media Contact:

Bruce Beck
President
DB&R
T: 805-777-7971
E: [email protected]
W: http://www.dbrpr.com

Subscribe to our newsletter
for more Hotel Newswire articles

Related News

Choose a Social Network!

The social network you are looking for is not available.

Close
Coming up in November 2021...

Architecture & Design: Wellness is Key


Like every other facet of hotel operations, architecture and design firms are adapting their work to ensure the safety and well-being of both guests and staff. New ways to bring Wellness into hotel spaces are being explored and these solutions are taking on many forms. Hotel designs are incorporating more open floor plans, open air spaces, high ceilings, outdoor areas and operable walls into their spaces. Guests no longer want to be packed into tight areas. More "biophilic" elements are also being incorporated, offering guests the sense of being outdoors. Another trend is the reimagining of guest rooms to support remote work capabilities. Some hotels are converting empty guest rooms into office spaces, complete with effective lighting and suitable backgrounds for video conferencing. Dedicated Zoom Rooms are also becoming increasingly popular. The main goal is to provide guests with a positive experience in a space that feels safe and comfortable. These are some of the architecture and design subjects that will be covered in the November issue of the Hotel Business Review.