Smith Hill Capital and Bain Capital completed a $235-million refinancing for Gurney’s Montauk Resort & Seawater Spa on behalf of BLDG Management and Metrovest Equities. The 20-acre property sits along 2,000 feet of private beachfront in Montauk, N.Y., and includes 158 keys across guestrooms, suites, beachfront cottages and residences.
The financing was arranged through the joint venture between Smith Hill Capital, the real estate debt investment business of Procaccianti Companies and Bain Capital.
“Gurney’s Montauk represents the type of irreplaceable, generational asset that aligns perfectly with our investment strategy—anchored by strong market fundamentals, exceptional sponsorship and long-term value creation,” said Brendan McCormick, managing principal, Smith Hill Capital.
“Even in today’s uncertain capital markets, we continue actively deploying capital for high-conviction opportunities like this. We’re proud to partner with Bain Capital and support BLDG and Metrovest in the continued evolution of this iconic resort, which is uniquely positioned as a luxury destination in one of the most sought-after leisure markets in the country.”
Located on the eastern end of Long Island, Gurney’s Montauk includes five dining venues, 25,000 square feet of meeting and event space and a 30,000-square-foot spa. The Seawater Spa features a full-size indoor saltwater pool, four spa pools, 20 treatment rooms, a salon and a fitness center.
“The Gurney’s Montauk loan exemplifies our strategic approach to commercial real estate lending,” said David DesPrez, partner, Bain Capital.
“This transaction underscores our commitment to providing flexible financing solutions to high-quality borrowers and assets through an uncertain macroeconomic environment.” JLL arranged the financing.
“Smith Hill Capital and Bain Capital proved to be outstanding lending partners on the Gurney’s project,” said Christopher Peck, senior managing director and co-head of the New York office, JLL.
“The team’s expertise and collaborative approach were invaluable in financing this unique asset. They immediately recognized the exceptional value of this 20-acre resort in Montauk and their flexible lending solutions perfectly aligned with the sponsors’ requirements.”
“Gurney’s Montauk is an exceptional and iconic property in a one-of-a-kind location with world-class amenities,” said Justin Kleinman, executive vice president and chief operating officer, BLDG Management.
“This property is a premier resort destination in the Northeast and is an elite asset in our portfolio.” Smith Hill and Bain Capital’s joint platform provides real estate financing focused on hospitality markets in demand-driven locations across the U.S. The venture combines capital markets expertise with operating experience and targets assets with long-term growth outlooks.