Dealmaker: Sonnenblick-Eichner Arranges $25M for Boutique Hotel
Sonnenblick-Eichner Co., Beverly Hills, Calif. arranged $25.25 million for Old No. 77 Hotel & Chandlery, a 167-room boutique hotel in New Orleans.
An investment group that included Provenance Hotel Partners, Portland, Ore., purchased the property in 2014 and rebranded the former Ambassador Hotel at 535 Tchoupitoulas in the city’s Warehouse Arts District. PHP acquired the equity interest in the property from its partners, GB Lodging, New York, and Woodbine Development Corp., Dallas.
“Despite the volatility of the capital markets and the concern about the hospitality market in general, we were able to obtain multiple loan quotes from capital providers,” said Sonnenblick-Eichner Co. Principal Patrick Brown.
The hotel, located blocks from the city’s French Quarter, re-launched as Old No. 77 & Chandlery in June 2015 following a $14 million renovation. Provenance Hotel Partners parent company Provenance Hotels will manage the asset under a long-term management agreement.
Provenance Hotel Partners, the real estate investment affiliate of Provenance Hotels, acquired Old No. 77 & Chandlery through its Provenance Hotel Partners Fund I, a $525 million real estate investment fund launched in January. PHP invests in value-add urban lifestyle hotels in the top 25 primary and secondary markets in the continental U.S.