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Press Release
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Contact: Nick Derasmo (212.841.7505) |
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Sonnenblick-Goldman Company Arranges $82 Million Financing for
The Sheraton Keauhou Bay Resort & Spa on Hawaii’s Big Island
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Tuesday, August 30, 2005
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New York, NY
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Sonnenblick-Goldman Company, serving as exclusive financial advisor to Koa Hotel, LLC, an affiliate of New York-based Brickman Associates and New Valley Corporation, has arranged a LIBOR-based, floating rate, first mortgage financing in the amount of $82,000,000 for the Sheraton Keauhou Bay Resort & Spa located in the Kona area of Hawaii’s Big Island.
The Sheraton Keauhou Bay Resort & Spa is a newly-renovated, 521-key, luxury resort situated on the lava flows of famed Keauhou Bay overlooking the Pacific Ocean. Re-developed at a cost of more than $70 million, the property offers over-sized guest rooms, each with a lanai, extensive meeting facilities, a full-service spa perched at the ocean’s edge, a beach & pool area featuring Hawaii’s longest water slide, and direct access to two championship golf courses. Originally known as the Kona Surf Hotel, the resort celebrated its Grand Opening in April 2005 as the Sheraton Keauhou Bay.
Douglas Hercher, Managing Director of Sonnenblick-Goldman’s Capital Markets Group, noted that “this was a complex financing because the property had just re-opened. Nevertheless, numerous lenders expressed a strong interest in the property because of the quality of the renovation and the strength of the development and management team.”
The loan, which was provided by Lehman Brothers, will be part of a larger, pooled securitization later this year. Rod O’Connor, a Principal at Brickman Associates, observed that “we have completed several deals with Lehman Brothers and were delighted to have the chance to work with them again.” He added, “The team at Sonnenblick Goldman did a terrific job of presenting the Sheraton Keauhou Bay to the financing community and helping us negotiate and structure the loan.”
“Brickman has done an extraordinary job repositioning this property,” commented Robert Stiles, Managing Director of Sonnenblick-Goldman’s San Francisco office and head of the firm’s West Coast Lodging Group. “I believe that the resort will quickly establish itself as one of Hawaii’s premier destination resorts and will also help attract even more visitors to the Big Island.”
The financing of the Sheraton Keauhou Bay Resort & Spa is the third major transaction arranged by Sonnenblick-Goldman in the Pacific islands during the past nine months. The firm structured the purchase and arranged equity and debt financing for the acquisition of the Hilton Guam with Rockpoint Group, LLC and Aozora Bank, respectively. The firm is also finalizing the debt and equity financing for the pending acquisition of the Waikiki Beachcomber Hotel on Oahu. Overall, Sonnenblick-Goldman has completed $2 billion of lodging transactions in 2005 and anticipates that it will be another record year for the firm’s Lodging and Leisure Group.
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Sonnenblick-Goldman, LLC is the industry’s leading independent real estate investment banking firm. Founded in 1893 to serve the financing needs of the real estate industry, Sonnenblick-Goldman, LLC provides a full range of financial services, including debt and equity placements, joint ventures, investment sales and advisory services. Headquartered in New York, Sonnenblick-Goldman maintains offices in San Francisco, Boston, Hong Kong, Shanghai, Sydney and Tokyo. Further information can be found at Sonnenblick-Goldman, LLC’s website at www.cushwake.com/sonngold.
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