US: Florida-based luxury boutique hotel The Ray Hotel Delray Beach has secured $86 million in refinancing, led by commercial real estate agency Menin Development.
The loan was provided by investment advisory firm ACRES Capital, with Drew Miller and James Bracco leading the transaction from the company. Richard Horowitz of Cooper-Horowitz advised and negotiated the debt on behalf of Menin Development.
Located at 233 Northeast 2nd Avenue in the Pineapple Grove Arts District, The Ray Hotel Delray Beach has recently been added to the Curio Collection by Hilton brand, and is scheduled to open on 1 September.
Once construction has been completed, the 141-room Ray Hotel will become the only Hilton-branded hotel in Delray Beach. The hotel will also feature 45,000 square feet of indoor and outdoor space, including an event space called The Cube, and a rooftop with an outdoor pool and restaurant.
Menin purchased the land for its first hotel project in 2016 for $26.6 million.
Its CEO, Craig Menin, said: “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.”
ACRES Capital CEO and president, Mark Fogel, said: “With the country’s tourism industry quickly rebounding, Delray Beach remains a popular destination that is sure to be a direct beneficiary. As this beach community continues to attract guests from across the US that are looking to book leisure travel, The Ray will accommodate a variety of travellers 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,” he added.
The loan financed by ACRES will retire $72 million in construction debt on the property, which was provided by Madison Realty Capital in June 2019.
Richard Horowitz said: “We are pleased to have worked with Menin Development and ACRES to complete The Ray Hotel Delray Beach transaction. 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,” he added.