Sonnenblick-Eichner Company facilitated a strategic joint venture equity investment for the Pacific City Lodging Portfolio in Pacific City, Oregon. This venture involves the significant participation of Noble House Hotels & Resorts, based in Kirkland, Washington.
According to a press release, the portfolio comprises Hart’s Camp and the Cape Kiwanda RV Park. Spread over approximately 15 acres and situated just across from the beach, these facilities offer a mix of 146 RV pads that include both drive-through and back-in options, along with Airstreams, cottages, and cabins.
Additionally, the portfolio includes the Headlands Coastal Lodge & Spa, the Inn at Cape Kiwanda, Hart’s Camp, and the Cape Kiwanda RV Park. Each property is distinguished by its location and the unique lodging options it offers. For instance, the Headlands Coastal Lodge & Spa provides 33 exclusively oceanfront guestrooms with balconies that present views of the Pacific Ocean and Haystack Rock. Similarly, the Inn at Cape Kiwanda features 35 guestrooms and suites, all with unobstructed ocean vistas.
“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,” Elliot Eichner, a principal and co-founder of Sonnenblick-Eichner Company, said.
Pacific City, where the properties are located, is a hub for outdoor enthusiasts and is often considered a leisure destination along the Oregon Coast. It is famous for its extensive outdoor recreational activities such as surfing, hiking, biking, and fishing. The proximity to state parks and the Nestucca River enhances its attractiveness as a destination for nature lovers and adventure seekers alike. The area is also known for its extensive beaches, notably featuring landmarks like Haystack Rock and the Cape Kiwanda Sand Dune.
“We were engaged to find a buyer for the entire portfolio, but ultimately a strategic investment for the partnership allowed our client to realize future growth in the portfolio, which was a more favorable transaction for them to execute,” Patrick Brown, a principal of Sonnenblick-Eichner Company, said.
Sonnenblick-Eichner Company is a Los Angeles-based real estate investment banking firm with a specialty in arranging finance for various real estate transactions, including acquisitions and constructions.
The joint venture equity investment for the Pacific City Lodging Portfolio offers valuable lessons for campground owners and operators aiming to enhance their business models. By integrating diverse lodging options such as RV pads, Airstreams, cottages, and cabins with premium properties, the portfolio has successfully created a comprehensive and attractive offering that caters to a wide range of customer preferences. Campground owners can learn from this model by diversifying their accommodations and amenities to appeal to various market segments.
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