After weeks of uncertainty, Lloyd Goldman’s BLDG Management finally refinanced Gurney’s Montauk Resort & Seawater Spa.
Smith Hill Capital and Bain Capital provided $235 million to BLDG and partner Metrovest Equities to refinance the East End commercial property, the Commercial Observer reported. A JLL Capital Markets team including Christopher Peck, Kevin Davis and Mark Fisher arranged the loan.
“Gurney’s Montauk is an exceptional and iconic property in a one-of-a-kind location with world-class amenities,” BLDG executive Justin Kleinman said in a statement following the deal.
It’s been a whirlwind stretch for Gurney’s.
BLDG and Metrovest bought Gurney’s in 2014 and pumped $54 million into renovating guest rooms, common areas, amenities and restaurants and building out a $16.4 million spa that pulls from ocean water to fill a full-size swimming pool.
Late last year, it defaulted on a $271 million loan it received in 2021; BLDG attributed it to an administrative hiccup holding up a loan extension. As part of the special servicing, Gurney’s was recently reappraised at $280 million, a 15 percent increase from the $244 million value when a loan was originally made.
In February, the resort reopened following some time offline for renovations. That same month, BLDG scored another year to pay off the debt. The trade-off was a $9.4 million paydown of the loan and a $3.1 million personal guarantee.
The 158-key hotel in Montauk sits on 20 acres and features a 2,000-foot private beach and 30,000-square-foot spa. The resort has 109 guestrooms, 35 suites, eight beachfront cottages and six residences, as well as five restaurants.
— Holden Walter-Warner