Gurney’s Montauk Resort & Seawater Spa Secures $235M Loan

BLDG Management Co., Inc. and Metrovest Equities have announced the completion of a $235 million refinancing for the iconic Gurney’s Montauk Resort & Seawater Spa in Montauk, NY. JLL represented the sponsors in the transaction, securing the financing from a joint venture comprised of Smith Hill Capital and Bain Capital.

Gurney’s is a celebrated oceanfront resort 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. In addition to the private beach, amenities include five dining venues (including the only on-beach dining venue in the Hamptons), 25,000 square feet of meeting space, a 30,000-square-foot onsite spa with four spa pools, a full-size indoor saltwater pool, 20 treatment rooms, a salon, and a state-of-the-art fitness center.

The sponsors have invested in comprehensive renovations of the guestrooms, restaurants, bars, beach, event and meeting spaces, and spa. The three-month renovation of the public spaces, lobby, common areas, and food and beverage outlets was recently completed, transforming the dining experience with new restaurants, including Dune Café & Lounge and a new flagship dining destination, gigi’s montauk, an innovative Mediterranean steak and seafood concept with a menu focused on coastal cuisine.

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

Related: Colebrook Financial Announces Hypothecation Loan for Caribbean Resort

“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 at BLDG Management. “This property is a premier resort destination in the Northeast and is an elite asset in our portfolio.”

“Gurney’s has established itself as a leading luxury resort brand distinguished by a host of exclusive amenities, including a pristine, 2,000-foot private beach, incredible wellness programming, breathtaking 30,000 sq ft Spa and visionary dining options,” said Michael Nenner, President and Chief Operating Officer of Gurney’s Resorts. “We are excited to offer our guests world-class service and a wide selection of new offerings this season.”

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

This marks a milestone transaction in the joint venture between Smith Hill Capital and Bain Capital. Together, they have built a successful track record of meeting the financing and growth needs of companies and assets in the hospitality sector across the U.S.

“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.”

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

BLDG Management Co., Inc., is a privately held New York City-based real estate investment and development company with a national portfolio of more than 300 assets across all sectors, including residential, retail, industrial, hospitality and office.  

Metrovest Equities is a New York City-based real estate firm specializing in the acquisition, development, rehabilitation and management of real estate assets. Established in 1996, the firm focuses on residential, office, retail, and hospitality opportunities in prime locations across the northeastern region of the U.S. The firm manages resorts and hotels across the United States. With a focus on long-term growth and value creation, Metrovest Equities strives to provide quality real estate opportunities for investors seeking stable returns.

For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500^® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 111,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAY^SM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

Smith Hill Capital (“Smith Hill” or “SHC”) is the fully integrated commercial real estate debt investment management business of the Procaccianti Companies (est. 1958). Smith Hill Capital was formed to invest in compelling commercial real estate debt opportunities that exist due to liquidity challenges and dislocation in commercial real estate financial markets. Smith Hill Capital is led by seasoned investment professionals who have multi-cycle investment experience and the tenured skill set to identify opportunities throughout the entire commercial real estate capital structure, spanning from securities to equity ownership. For more information, please visit www.smithhillcapital.com.

Founded in 1984, Bain Capital is one of the world’s leading private investment firms. We are committed to creating lasting impact for our investors, teams, businesses, and the communities in which we live. As a private partnership, we lead with conviction and a culture of collaboration, advantages that enable us to innovate investment approaches, unlock opportunities, and create exceptional outcomes. Our global platform invests across five focus areas: Private Equity, Growth & Venture, Capital Solutions, Credit & Capital Markets, and Real Assets. In these focus areas, we bring deep sector expertise and wide-ranging capabilities. We have 24 offices on four continents, more than 1,850 employees, and approximately $185 billion in assets under management. To learn more, visit www.Baincapital.com. Follow @Bain Capital on LinkedIn and X (Twitter).