Beverly Hills, CA – July 20, 2016 – Sonnenblick-Eichner Company has arranged $25,250,000 of first mortgage debt to finance Provenance Hotel Partners’ (“PHP”) acquisition of Old No. 77 Hotel & Chandlery, a historic 167-room, full-service boutique hotel in New Orleans.
PHP was part of the investment group that, in 2014, purchased and successfully rebranded the former Ambassador Hotel at 535 Tchoupitoulas in the city’s Warehouse Arts District, only blocks from the French Quarter. The hotel re-launched as Old No. 77 & Chandlery in June 2015 following an extensive $14 million renovation. The hotel will be managed by Provenance Hotels under a long term Management Agreement.
PHP acquired the equity interest in the property from its partners – GB Lodging and Woodbine Development Corp. Sonnenblick-Eichner Company, a Los Angeles-based real estate investment banking firm, with a particular expertise in raising debt and equity for the acquisition and refinancing of hospitality assets, was able to secure financing to facilitate the acquisition.
“PHP is a longtime client and because of the short fuse, relied on us for certainty of execution,” said Sonnenblick-Eichner’s Principal Elliot Eichner.
“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,” added Patrick Brown, also a Principal of Sonnenblick-Eichner Company.
PHP, the real estate investment affiliate of Portland, OR-based Provenance Hotels, acquired Old No. 77 & Chandlery through its Provenance Hotel Partners Fund I, a recently launched $525 million real estate investment fund. PHP invests in value add urban lifestyle hotels in the top 25 primary and secondary markets in the continental U.S.
