ACRES Originates $86M Loan to Refinance Hilton-Branded Hotel in Delray BeachJULY 01, 2021
DELRAY BEACH, Fla. – (July 1, 2021) – ACRES Capital Corp. (together with its subsidiaries, “ACRES”), a leading commercial real estate middle-market lender, has originated a nearly $86 million loan to refinance The Ray Hotel Delray Beach (the “Property”), a member of the Curio Collection by Hilton brand of hotels located at 233 NE 2nd Ave. in Delray Beach, Florida. The loan is provided to sponsor Menin Development Inc. (“Menin”), a real estate development firm that has acquired, developed and remodeled properties worth more than $1.5 billion across the Mid-Atlantic and Southeast U.S. The Ray Hotel Delray Beach is in its final stages of construction and is expected to open on September 1st, 2021.
“With the country’s tourism industry quickly rebounding, Delray Beach remains a popular destination that is sure to be a direct beneficiary,” said ACRES Chief Executive Officer and President Mark Fogel. “As this beach community continues to attract guests from across the U.S. that are looking to book leisure travel, The Ray will accommodate a variety of travelers 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.”
The Ray Hotel Delray Beach is a 141-key, four-story, full-service hotel, and will offer an upscale, luxury experience to those seeking an independent hotel feel with the reassurance of the Hilton flagship brand. The only Hilton hotel in Delray Beach, the Property will feature a 20,000-square-foot rooftop with an outdoor pool, restaurant and bar – the only rooftop bar in the city. In total, the Property will offer more than 45,000 square feet of indoor and outdoor event space, one of the largest in the area. It will also include a signature, 3,590-square-foot event space called The Cube, which will be ideal for weddings, charity functions, parties or other major events. Additional food and beverage options will consist of another upscale restaurant, as well as a lobby bar and coffee bar. Other amenities will include a fitness room, valet laundry, shuttle service to the beach and a private beach section for hotel guests.
Craig Menin, Chief Executive Officer of Menin, stated, “The Ray Hotel Delray Beach, Curio Collection by Hilton, will be a signatureaddition to the evolution of downtown Delray Beach, which is transforming the city into an even more exciting destination for visitors while generating an influx of commercial demand. 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.”
The Property resides within the Pineapple Grove Arts District, which is just north of the heart of the entertainment, shopping and dining area of downtown Delray Beach. The District features an eclectic mix of boutiques, bistros, art galleries, salons and spas, and is well-known for its public artwork and attractions like Artist’s Alley, which contains working artist studios; as well as trendy entertainment venue Arts Garage. The Ray Hotel Delray Beach is located less than a mile from the beach and approximately two blocks north of Atlantic Avenue, a main thoroughfare with restaurants, bars and retail stores that was voted one of USA Today’s “10 great American shopping streets.”
Richard Horowitz of Cooper Horowitz, who arranged the loan, 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.”
The deal was originated by the ACRES team of Drew Miller and James Bracco.