NEW ORLEANS—Sonnenblick-Eichner Co., has arranged $25.2 million of first mortgage debt to finance Provenance Hotel Partners’ (PHP) acquisition of Old No. 77 Hotel & Chandlery, a historic 167-room boutique hotel here.
PHP acquired the equity interest in the property from its partners, GB Lodging and Woodbine Development Corp. PHP was part of the investment group that, in 2014, purchased and rebranded the former Ambassador Hotel at 535 Tchoupitoulas in the city’s Warehouse Arts District and launched it as Old No. 77 & Chandlery in June 2015 following an extensive $14-million renovation.
“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 Patrick Brown, a principal of Los Angeles-based Sonnenblick-Eichner Co.
PHP, the real estate investment affiliate of Portland, OR-based Provenance Hotels, acquired the property via its Provenance Hotel Partners Fund I, a recently launched $525 million real estate investment fund.
Provenance Hotels will manage the hotel.