LOS ANGELES, California—Sonnenblick-Eichner Company has arranged a strategic joint venture equity investment into the ownership entity of the Pacific City Lodging portfolio, located in Pacific City, Oregon. The Pacific City Lodging portfolio is a collection of oceanfront resort properties comprised of the Headlands Coastal Lodge & Spa, the Inn at Cape Kiwanda, Hart’s Camp, and the Cape Kiwanda RV Park. Noble House Hotels & Resorts of Kirkland, Washington, provided the investment into the partnership.
This investment from Noble House allowed the existing ownership an opportunity to realize equity that they have created in the portfolio while aligning with a hospitality owner and operator dedicated to investing and growing asset value. This structure also allows ownership to continue to benefit from appreciation in value.
The Headlands Coastal Lodge & Spa offers 33 guestrooms of which all are oceanfront with balconies. The Inn at Cape Kiwanda offers 35 guestrooms and suites. The Hart’s Camp and Cape Kiwanda RV Park (RV Parks) total approximately 15 acres and are located across the street from the beach. The RV Parks feature 146 pads comprised of the drive-through and back-in RV parking, as well as Airstreams, cottages, and cabins.
Pacific City is known for outdoor activities and experiential leisure travel, including surfing, hiking, biking, fishing, climbing, tide pooling, and boating. The area is near several state parks and only one mile from the Nestucca River, a fishing and kayaking destination. Pacific City is also regarded for its nine miles of walkable beaches and is home to Cape Kiwanda, Haystack Rock, and the Cape Kiwanda Sand Dune.
“We generated significant buyer interest given the unique oceanfront locations in one of Oregon’s top leisure destinations. Adding to the appeal of the offering was the availability of management and franchise, as well as the strong in-place cash flow and extreme barriers to entry,” said Elliot Eichner, a principal and co-founder of Sonnenblick-Eichner Company.
“We were engaged to find a buyer for the entire portfolio, but ultimately a strategic investment for the partnership gave our client the opportunity to realize future growth in the portfolio, which was a more favorable transaction for them to execute,” added Patrick Brown, a principal of Sonnenblick-Eichner Company.
