Gurney’s Montauk Resort secures $235M in refinancing

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The owners of Gurney’s Montauk Resort & Seawater Spa in Montauk have secured a $235 million refinancing. 

The loan was arranged by the JLL Capital Markets team, which represented the resort’s owners, BLDG Management Co., Inc. and Metrovest Equities, and secured through a joint venture of Smith Hill Capital and Bain Capital. 

Gurney’s, the well-known oceanfront resort, is located on a 2,000-foot private beach in Montauk, with a total of 158 keys divided between 109 guestrooms, 35 suites, eight beachfront cottages, and six residences. Amenities include five dining venues, 25,000 square feet of meeting space, a 30,000-square-foot onsite spa with four spa pools, an indoor saltwater pool, 20 treatment rooms, a salon, and a fitness center. 

Ownership has invested in extensive renovations of the guestrooms, restaurants, bars, beach, event and meeting spaces and spa, according to a company statement. The three-month renovation of the public spaces, lobby, common areas and food and beverage outlets was recently completed, creating new restaurants, including Dune Café & Lounge and a new flagship dining destination, gigi’s montauk, a Mediterranean steak and seafood concept with a menu focused on coastal cuisine. 

“Gurney’s Montauk is an exceptional and iconic property in a one-of-a-kind location with world-class amenities,” Justin Kleinman, executive vice president and COO at BLDG Management. “This property is a premier resort destination in the Northeast and is an elite asset in our portfolio.” 

Brendan McCormick, managing principal at Smith Hill Capital, called Gurney’s an irreplaceable, generational asset that aligns with his firm’s investment strategy. 

“Even in today’s uncertain capital markets, we continue actively deploying capital for high-conviction opportunities like this,” McCormick said in the statement. “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.” 

David DesPrez, a partner at Bain Capital, echoed McCormick’s sentiments. “The Gurney’s Montauk loan exemplifies our strategic approach to commercial real estate lending,” DesPrez said in the statement. “This deal underscores our commitment to providing flexible financing solutions to high-quality borrowers and assets through an uncertain macroeconomic environment.” 

The JLL Capital Markets team handling the transaction included Senior Managing Director Christopher Peck, Hotels & Hospitality Group Americas CEO Kevin Davis, Managing Director Mark Fisher and Director Connor Medzigian. 

“Smith Hill and Bain proved to be outstanding lending partners on the Gurney’s project,” Peck said in the statement. “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.”