Beverly Hills, Calif. – Sonnenblick-Eichner Company has arranged $50 million of interim first mortgage financing to refinance Hotel Theodore, a 20-story, 153-room, full-service, luxury boutique hotel located at the corner of 7th Avenue and Pine Street in the heart of downtown Seattle, Wash., one block west of the Washington State Convention Center.
The floating-rate loan was sized to a debt yield of less than 6 percent and priced over LIBOR at a spread in the mid-300s. Loan proceeds are being used to refinance the existing acquisition and renovation loan as well as provide a return of equity to the borrower, Portland, Ore.-based Provenance Hotels.
In November of 2017, Provenance completed an extensive $32 million renovation that included updating the guestrooms, bathrooms, meeting rooms, public spaces, and a build-out of the ground-floor restaurant space. Amenities include Rider, an upscale restaurant and bar, a coffee shop, approximately 4,172 square feet of state-of-the-art meeting space, and a fitness center.
“Given the excellent sponsorship and location, and that Seattle is one of the fastest growing and most dynamic gateway cities in the U.S., we had 14 competitive loan quotes from institutional lenders,” said Sonnenblick-Eichner Company Principal Elliot Eichner.