Deal with The Pacific City Lodging Portfolio on the Oregon
coast gives owners the opportunity to realize further growth versus an intended
sale.
Noble House Hotels & Resorts, Kirkland, Washington has
invested into the ownership entity of The Pacific City Lodging Portfolio in
Pacific City, on the Oregon coast, which is a collection of oceanfront resort
properties comprised of the Headlands Coastal Lodge & Spa, the Inn at Cape
Kiwanda, Hart’s Camp, and the Cape Kiwanda RV Park.
Details about the deal were not immediately available, but this investment from Noble House allowed the existing ownership an opportunity
to realize equity that they have created in the portfolio while aligning with a
hospitality owner and operator dedicated to investing and growing asset value. This
structure also allows ownership to continue to benefit from appreciation in
value.
The strategic joint venture was arranged by
Sonnenblick-Eichner Co., Los Angeles. “We were engaged to find a buyer for the
entire portfolio, but ultimately a strategic investment for the partnership
gave our client the opportunity to realize future growth in the portfolio,
which was a more favorable transaction for them to execute,” said Patrick
Brown, a principal of Sonnenblick-Eichner.
Elliot Eichner, a principal
and co-founder of Sonnenblick-Eichner, added, “We generated significant buyer
interest given the unique oceanfront locations in one of Oregon’s top leisure
destinations. Adding to the appeal of the offering was the availability of
management and franchise, as well as the strong in-place cash flow and extreme
barriers to entry.”
The Headlands Coastal Lodge & Spa offers 33
guestrooms, of which 100% are oceanfront with balconies offering full views of
the Pacific Ocean and Haystack Rock. The Inn at Cape Kiwanda offers 35
guestrooms and suites with unobstructed ocean views. The Hart’s Camp and Cape
Kiwanda RV Park (RV Parks) total approximately 15 acres and are located across
the street from the beach. The RV Parks feature 146 pads comprised of drive-through
and back-in RV parking, as well as Airstreams, cottages and cabins.
Pacific City is recognized as the premier destination on the Oregon Coast for
outdoor activities and experiential leisure travel. It is also well-known for
outdoor adventure activities, including surfing, hiking, biking, fishing,
climbing, tide pooling and boating. The area is in close proximity to several
state parks and only one mile from the Nestucca River, a premier fishing and
kayaking destination. Pacific City is also regarded for its nine miles of
walkable beaches and home to Cape Kiwanda and Haystack Rock (one of the largest
coastal monoliths in the world), and the Cape Kiwanda Sand Dune, a massive
240-foot sand dune.