Sonnenblick-Eichner Arranges $50M Refi for Seattle Hotel
- Jul 26, 2018
Sonnenblick-Eichner Co. has secured a $50 million loan for Provenance Hotels to refinance a recently renovated property, the 153-key Hotel Theodore in the heart of downtown Seattle.
Sized to a debt yield of less than six percent and priced over LIBOR at a spread in the mid-300s, the floating-rate loan will fund the existing acquisition and renovation loan as well as provide a return of equity to the borrower.
Located at 1531 Seventh Ave., Theodore is a 20-story luxury boutique hotel one block west of Washington State Convention Center. The building includes a ground-floor restaurant and bar, a coffee shop, a fitness center and roughly 4,200 square feet of meeting space. Last year in November, Provenance invested $32 million in renovating the asset. Improvements included updating guestrooms, bathrooms, meeting rooms, public spaces and a build-out of the restaurant space.
“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 Co. Principal Elliot Eichner, in a prepared statement. The loan refinanced an existing financing that had also been arranged by Sonnenblick-Eichner Co.
Image courtesy of Sonnenblick-Eichner Co.