Lloyd Goldman Refis Montauk Resort After Special Servicing

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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Gurney’s was recently reappraised at $280 million, a 15 percent increase from the $244 million value when a loan was originally made.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