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SEATTLE-The owner of Hotel 1000 has landed a $41.5-million loan for the 120-room property. The luxury boutique hotel opened in June in the lower 14 floors of a 24-story hotel and condominium tower at First Avenue and Madison Street Downtown.
The 10-year, fixed-rate loan is interest free for the first two years. The balance of the payments are based on a 30-year amortization schedule. The loan, which represents 75% of the hotel's stabilized value, was provided by an undisclosed Wall Street investment bank. It was sourced by Los Angeles-based Sonnenblick-Eichner Co.
Sonnenblick-Eichner principal Patrick Brown says that given the hotel's recent opening, lenders typically would have offered up only a floating-rate loan. Company principal Elliot Eichner tells GlobeSt.com the financing is an indication of the strength of the hospitality debt markets, the quality of the property and the quality of the market.
"We were able to arrange financing based upon pro forma stabilized cash flow for a hotel with no operating history," Eichner says. "The lender was comfortable that the property would achieve the cash flow necessary to service the debt going forward."
The developer is 1000 First Avenue Properties LLC, a local investor and builder group. The group reportedly includes some of the same parties that developed Cristalla, a new 24-story condominium tower in Seattle's Belltown neighborhood. That group is Cristalla Inc., which is part of the Bellevue-based Murray-Franklin Family of Cos. The managing member of Cristalla Inc. is Steve Washburn.
Hotel 1000 is rising on the former Warshall's Sporting Goods site. Hotel developer Gordon Sondland paid $1 million for a 50% interest in the property in 1997 with N. Jack Alhadeff, a real estate broker and investor. In 2001, the duo received a master-use permit for a 25-story building with 128 hotel rooms topped by 72 apartment units.
The size of the hotel hasn't changed but the apartments are now condos and there are only 47 rather than 72. Hotel amenities include 6,600 sf of meeting and banquet space, a 100-seat restaurant with a lounge and bar, a spa, a fitness center and parking to accommodate approximately 110 cars.
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