Dealmaker: Sonnenblick-Eichner Co. Arranges $39M For Portland, Ore. Hotel

Sonnenblick-Eichner Co., Beverly Hills, Calif., arranged $39 million for Moxy Portland Downtown, a 197-room hotel in Portland, Ore.

Graves Hospitality, Minneapolis, developed and manages the property in partnership with KCB Real Estate, Pasadena, Calif.

Loan proceeds paid off the property’s construction loan and provided funds for an interest reserve as well as closing costs and fees. The five-year LIBOR-based loan equaled 76 percent of total project costs.

The hotel opened last spring, so it has limited financial data. “Despite the fact that the hotel had limited operating history, coupled with the complexities inherent in leasehold financing, we were successful in structuring a loan that will provide time for the hotel to stabilize,” said Elliot Eichner, Principal with Sonnenblick-Eichner.

Located at 585 SW 10th Avenue between the downtown retail core and Powell’s City of Books, Moxy Portland Downtown’s amenities include a lobby bar, lounge and 24-hour fitness center.

Patrick Brown, also a Principal with Sonnenblick-Eichner, said the loan was competitively bid for a property with limited operating history. He noted seeing “tremendous demand” within the hotel sector.

Moxy Hotels are Marriott International’s millennial-focused brand that aims to combine stylish design with an affordable room rate.