Dealmaker: Sonnenblick-Eichner Arranges $41M for Portland’s Hotel Eastlund

Sonnenblick-Eichner Co., Beverly Hills, Calif., arranged $41 million in first mortgage financing for Hotel Eastlund in Portland, Ore.

An international money center bank provided the 10-year, non-recourse fixed-rate financing, Sonnenblick-Eichner Principal Elliot Eichner said.

“The hotel recently completed an extensive renovation and rebranding and had limited operating history at the time of the closing of the new loan,” Eichner said. “By underwriting the most recent trailing 12-month cash flow, we were able to maximize loan proceeds.”

Oregon Live reported that property owner Grand Ventures Hotel LLC, Portland, acquired the 168-room hotel on the city’s east side in 2013 and invested $15 million in a gut renovation. The former Red Lion hotel reopened to the public in 2015.

Eichner noted that the firm also negotiated two years of interest-only payments.

Located across the street from the Oregon Convention Center in Portland’s burgeoning Lloyd District, the six-story Hotel Eastlund includes 5,300 square feet of meeting room and event space and a rooftop deck. The property also includes 1,000 square feet of street-level retail space. Travel & Leisure magazine ranked the property among the top 20 “Coolest New Urban Hotels in the Country” last year.

“This new loan takes out an acquisition and construction loan that we previously arranged for the ownership,” said Sonnenblick-Eichner Principal Patrick Brown.