Catal Group Refis Montauk Hotel With $44M Loan

Enduring Hospitality has secured a $44 million loan to refinance a newly renovated luxury hotel property in Montauk, N.Y., Commercial Observer has learned. 

Catal Group provided the loan on the 44-key Offshore Montauk on Long Island’s East End. The lodging asset, formerly known as the Sands Motel, recently underwent a renovation project with guest rooms and amenity space with plans for a new 10,000-square-foot restaurant also planned.

“It was a complicated transaction with challenges that were presented along the way. and our team continued to get creative and find a path towards closing,” Trisha Connolly-Horowitz, head of real estate lending at Catal Group, told CO. “This is a great deal in our portfolio, and we are looking forward to the restaurant opening.” 

Newmark arranged the debt with a team consisting of Nick Scribani, Tyler Dumon, Tim Polglase and Tate Keir. 

Enduring acquired the property at 71 South Emerson Avenue for an undisclosed purchase price in spring 2024 after it was listed for $28 million, The Real Deal reported at the time. The hotel on the eastern edge of the Hamptons has beachfront access and an outdoor pool.

Enduring Hospitality did not immediately return a request for comment. 

The loan for Offshore Montauk was closed on the heels of another nearby hotel, the 65-key Marram Montauk, landing a $65 million refi from Knighthead Funding in late May, CO first reported at the time. 

Andrew Coen can be reached at acoen@commercialobserver.com.