ACRES Capital Refinances The Ray Hotel Delray Beach With $86M Loan 

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Things are looking pretty darn sunny in Florida as we head into the holiday weekend. 

Menin Development just closed a $86 million refinance for The Ray Hotel Delray Beach, Commercial Observer can first report. 

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ACRES Capital provided the loan, with ACRES’ Drew Miller and James Bracco leading the deal. Cooper-Horowitz’s Richard Horowitz negotiated the debt on behalf of Menin. 

The luxury boutique hotel — located at 233 Northeast 2nd Avenue, in the Pineapple Grove Arts District is the latest addition to the Curio Collection by Hilton brand. It’s now in its final stages of construction, with its opening slated for Sept. 1. 

When completed, the 141-key property will be the only Hilton-branded hotel in Delray Beach, and will also include the only rooftop bar in the city. Featuring a tropical and sustainable aesthetic throughout, the hotel will feature living walls, large-scale sculptures, and immersive art installations.

In total, the hotel will include 45,000 square feet of indoor and outdoor space, including a 3590-square-foot event space called The Cube. Its 20,000-square-foot rooftop will also feature an outdoor pool and restaurant.

While a seasoned developer, owner and operator of commercial real estate properties, The Ray is Menin’s first hotel project. The Delray Beach-based firm acquired the land on which the hotel now sits back in 2016, paying $26.6 million. 

Menin CEO Craig Menin described The Ray as “a signature addition to the evolution of Downtown Delray Beach, which is transforming the city into an even more exciting destination for visitors while generating an influx of commercial demand.

“We are thrilled to work with the ACRES team, who were able to provide us with a creative and flexible financing package to support our business plan for the hotel,” he added. 

“With the country’s tourism industry quickly rebounding, Delray Beach remains a popular destination that is sure to be a direct beneficiary,” ACRES CEO and President Mark Fogel said. “As this beach community continues to attract guests from across the U.S. that are looking to book leisure travel, The Ray will accommodate a variety of travelers as one of the only major new hotels in the city. We are excited to partner with Menin, a strong sponsor that has local expertise, and with a world-renowned, flagship hospitality brand in Hilton to bring the property to life.

Indeed, the Pineapple Grove Arts District is home to art galleries, boutiques and numerous dining options. The hotel also sits less than a mile from the beach, and The Ray’s guest amenities include a shuttle service to a private beach section reserved for hotel guests. 

ACRES’ loan retires $72 million in construction debt on the property, provided by Madison Realty Capital in June 2019. Cooper-Horowitz also arranged that round of financing on the property. 

“We are pleased to have worked with Menin Development and ACRES to complete The Ray Hotel Delray Beach transaction,” Horowitz said. “The property will be a significant hospitality asset and will attract many tourists to the area. ACRES enabled Menin’s vision to become a reality, as their team delivered yet again. It has been a pleasure working with Menin and ACRES, and we look forward to working with both parties again in the future.”