Contact Information: Media Contact: Debi Fidler 310-286-7700
Sonnenblick-Eichner Company Arranges $24 Million of First Mortgage Financing for the Surfsand Resort in Cannon Beach, Oregon
| Source: Sonnenblick-Eichner Company
LOS ANGELES, CA -- (MARKET WIRE) -- November 28, 2006 -- Sonnenblick-Eichner Company announced today
that it has arranged $24,000,000 of first mortgage financing for the
Surfsand Resort, Cannon Beach's premier full service resort located on the
beach along Oregon's northern coast. Proceeds from the loan will be used
to completely renovate and redevelop the property. The 5-year interim loan
provides for interest-only payments for the first three years of the loan.
The financing was provided by an affiliate of a Wall Street investment
bank.
Upon completion of the redevelopment, the resort will offer 106 luxury
guestrooms with amenities that include 5,800 square feet of meeting and
banquet space, a restaurant with a lounge and bar, a spa, a fitness center,
and an indoor pool. The hotel is located within 90 minutes of Portland and
approximately 3 hours from Seattle by car. Cannon Beach is the closest
recreational beach resort destination to Seattle.
Elliot Eichner, a Principal of Sonnenblick-Eichner Company, commented,
"Despite the fact that part of the redevelopment was ground-up
construction, we were able to structure a loan with a minimal guarantee
that burns off upon completion of construction. The loan also provides
flexibility for pre-payment, which will allow the borrower to access the
permanent loan market when the renovation is complete."
Aaron Lerner, a Senior Associate of Sonnenblick-Eichner Company, added,
"Due to the tremendous amount of equity in the property and given the
borrower's long term ownership and management of the hotel, we were able to
get the lender comfortable with financing 100 percent of the capital
required to complete the project."
About Sonnenblick-Eichner Company
Sonnenblick-Eichner Company (www.sonneich.com) is a Los Angeles-based real
estate investment banking firm that specializes in arranging structured
finance for acquisition, construction and permanent loans, interim and
mezzanine financing as well as joint venture equity transactions. The
company is recognized for its expertise in marketing institutional real
estate for sale and providing capital for all product types including
retail, office, hospitality, industrial, and multifamily properties.
