ACRES Capital Originates Loan to Acquire Top-Ranked Harborfront Inn in Greenport, NY
Acquisition and RepositioningDECEMBER 20, 2019
GREENPORT, NY (December 2019) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, is pleased to announce that it has originated a loan to fund the acquisition and repositioning of the Harborfront Inn, a 35-key waterfront hotel located at 209 Front Street in Greenport, New York. The loan carries an initial term of 24 months and is provided to sponsor Eagle Point Hotel Partners (“Eagle Point”), an investment platform targeting midscale, full-service and boutique hotels in primary and secondary U.S. markets.
“The Harborfront Inn project represented the opportunity to invest in a top-ranked hospitality asset with immense potential,” said ACRES Chief Executive Officer and President Mark Fogel. “While the Greenport market is highly attractive to seasonal visitors throughout the warm summer months, it also sees significant hotel occupancy rates well into the fall when compared to similar destinations on Long Island’s East End, due to its year-round business presence and numerous high-quality wineries. Eagle Point is an incredibly strong sponsor with institutional experience and a growing portfolio of award-winning hotels – including the nearby Sound View Greenport inn – and is well-positioned to maximize the property’s value.”
The Harborfront Inn is ideally located on the south side of Front Street, overlooking the Peconic Bay in the heart of Greenport and sitting adjacent to Mitchell Park and Marina. It resides just one block from the Shelter Island ferry terminal as well as the Greenport Long Island Railroad station. The Inn has established itself as the top TripAdvisor-rated hotel in Greenport, maintaining a dedicated customer base among Greenport regulars while concurrently appealing to new visitors. Benefitting from the village’s serene waterfront setting and quaint atmosphere, as well as a range of dining and shopping options, the Inn has been well-maintained throughout its lifecycle. Several improvements are planned for the hotel following its acquisition, including an updated lobby, a re-opening of its lobby bar, the replacement of furniture, fixtures and equipment, and renovated bathrooms.
Eagle Point Principal Erik Warner stated, “The ACRES team was able to provide us with a flexible financing option that addressed a rapidly evolving timeline, as well as the needs of our business plan for the Harborfront Inn. As our hospitality portfolio continues to grow on the North Fork, we look forward to expanding our relationship and working together on future projects.”
Greenport’s historical significance as a major East Coast whaling, fishing and ship-building port continues to entice a variety of visitors. Cultural attractions sustaining the area’s hospitality and tourism industries include an 1840s schoolhouse, 1920s carousel, 1870s replica blacksmith’s shop, the East End Seaport Museum, the Greenport Theatre, the Railroad Museum of Long Island, and several of Long Island’s esteemed 56 wine producers. Activities enjoyed by Greenport visitors include golfing, sailing, kayaking, hiking and boat cruises. Investment in Long Island’s North Fork has grown in recent years and has seen several notable advancements, including the sale of Claudio’s restaurant in March 2018; the development of 16-key boutique hotel The Menheden, located across the street from the Harborfront Inn; and the purchase of both the Orient by the Sea Restaurant and Marina and the Peconic Bay Winery by noteworthy investors.
About ACRES Capital
ACRES is a balance sheet lender and SEC-registered investment adviser that provides debt capital solutions for the commercial real estate industry on a nationwide platform. ACRES seeks opportunities in the $10 million to $75 million range on stabilized and transitional properties including multifamily, retail, office, hospitality, and industrial. As of December 2019, ACRES has closed over $1.25 billion of transactions.