The uptick in interest rates hasn't slowed down the wave of refi in the Pacific NW—not yet. Recently Portland-based Provenance Hotels obtained $236M in first mortgage financing for seven of its hotels totaling 1,072 rooms, most of which are in Portland or Seattle. Sonnenblick-Eichner Co principal Elliot Eichner tells us the cost of prepayment was mitigated by the lower cost of capital and the risk associated with the potential of higher interest rates in the future. Sonnenblick-Eicher arranged the refis.
Elliot says the borrower also realized pent-up equity it had in the portfolio. Following the financing, six of the seven properties were acquired by Provenance Hotels’ newly launched $525M fund, Provenance Hotel Partners Fund I (including the Sentinel Hotel in Portland, pictured).
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