ACRES Capital Originates Loan to Renovate Award-Winning Sound View Greenport Hotel
Renovation of Sound View Greenport HotelDECEMBER 22, 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 renovation of Sound View Greenport, an award-winning, resort-style hotel located at 58855 North Road 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.
“Sound View Greenport is a key hospitality asset that is ideally positioned to continue to capitalize on the recent tourism growth on the North Fork of Long Island,” said ACRES Chief Executive Officer and President Mark Fogel. “We see this investment as an exciting opportunity to build upon the many improvements already made to the hotel, and to build upon the success it has seen since its grand re-opening. We have enjoyed an excellent relationship with sponsor Eagle Point, to which we recently provided a loan for its acquisition of the nearby Harborfront Inn. Eagle Point’s ownership of both assets will allow it to utilize operating efficiencies between both properties.”
Sound View Greenport is an upscale, boutique hotel featuring a private beach, waterfront decks, and modern design influences. Upon acquiring the property in early 2016, the sponsor invested approximately $6 million in capital improvements to help solidify the hotel as a premier destination for Eastern Long Island visitors. ACRES’ new financing will provide working capital to fund further renovations to the hotel’s Pebble Beach building, which will involve the overhaul and reconfiguration of 10 units, increasing the hotel’s key count by eight. It will also allow for the relocation of the road in front of the property, providing a quieter, more serene atmosphere for guests. Sound View Greenport has garnered several favorable recognitions, including TripAdvisor’s 2019 Certificate of Excellence; OpenTable’s 2019 Diner’s Choice; and Fodor’s “The Best Hotels in the USA.” The sponsor selected ACRES for its ability to creatively and efficiently structure financing to replace previous debt on the property.
Eagle Point Principal Erik Warner stated, “As we continue to bolster our portfolio with independent hospitality assets, we feel that the tourism growth in Greenport makes it an excellent location for new investment. This is the second transaction that we’ve completed with the ACRES team, which was able to recognize the strategic nuances of our business plan and work with us to ensure a swift and inventive financing solution.”
Historically, Greenport has been a significant East Coast fishing, whaling and ship-building port for New York. Its numerous cultural attractions continue to entice a wide range of visitors today, and include the village’s thriving waterfront, quaint retail shops and abundant restaurants. It has a higher population density than other popular Eastern Long Island destinations, making it ideal for year-round visitors in addition to seasonal residents and affluent second-home owners. In addition to its outdoor activities and unique dining experiences, Greenport’s attractions 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 wineries.
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.