Smith Hill Capital, Bain Capital Provide $235M Refi for Gurney’s Montauk Resort

One of the premier hospitality assets in Long Island just got a new round of financing.

Commercial Observer is first to report that BLDG Management and Metrovest Equities have secured $235 million to refinance Gurney’s Montauk Resort & Seawater Spa, a historic 158-key hotel in Montauk that sits on 20 acres and includes a 2,000-foot private beach and 30,000-square-foot spa.

Smith Hill Capital and Bain Capital provided the loan, which was arranged by the JLL Capital Markets team of Christopher Peck, Kevin Davis, Mark Fisher and Connor Medzigian. 

Peck told CO that both Smith Hill and Bain recognized “the exceptional value” of the Long Island resort and were able to provide “flexible lending solutions” that aligned with the sponsor’s desires. 

“Smith Hill and Bain proved to be outstanding lending partners on the Gurney’s project,” Peck said. “The team’s expertise and collaborative approach were invaluable in financing this unique asset.” 

Located at 290 Old Montauk Highway amid a trendy, seaside tourist destination on the eastern end of Long Island,  Gurney’s Montauk Resort & Seawater Spa opened in 1926 and was formerly known as Gurney’s Inn. The resort underwent a $54 million renovation in 2014 after BLDG and partner Metrovest bought the property that same year. 

Today the resort features 109 guestrooms, 35 suites, eight beachfront cottages and six residences along with five restaurants, 30,000 square feet for events and meetings, and thousands of square feet devoted to swimming, fitness and salon treatments.  

“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 chief operating officer at BLDG Management, said in a statement.

It’s been a wild ride recently for Gurney’s. The Real Deal reported last month that a $271 million loan made on the property four years ago fell into special servicing in December 2024. The article cited a Trepp report, which noted the owners’ failure to repay, refinance or extend its mortgage before reaching maturity. But a source close to the deal told CO that the one-month stay in special servicing was due to “an administrative issue.” 

After emerging from special servicing earlier in the year, Gurney’s Montauk Resort & Seawater Spa was appraised at $280 million, up from the $244 million appraisal it received in 2021, per The Real Deal. 

Brian Pascus can be reached at bpascus@commercialobserver.com