Menin Development borrows $72M to build boutique hotel in downtown Delray
South Florida real estate developer Menin Development landed a $72 million loan to finance construction of The Ray, a 141-room hotel planned in downtown Delray Beach.
Madison Realty Capital provided the 24-month construction loan with extension options.
Hilton will manage The Ray and fold the boutique hotel into its Curio Collection brand.
The Ray will feature a 20,000-square-foot pool deck, event space for as many as 300 guests, and a restaurant led by Akira Back, a Korean chef who also oversees restaurants in California, Las Vegas and Texas.
Delray Beach-based Menin Development purchased the site of the hotel development for $26.6 million in 2016. The property purchase included a 17,000-square-foot strip mall called Esplande Plaza, which remains operational and serves as part of the collateral for the construction loan from Madison Realty Capital.
“We believe in the product they’re delivering here. There’s a void in the market for this type of property,” Madison co-founder Josh Zegen told the Commercial Observer.
Executives of Menin Development were unavailable for comment. Richard Horowitz of Cooper-Horowitz in New York City, who arranged the construction financing, declined to comment.
Menin Development, led by Craig Menin and Marc Yavinsky, last month got a $29.8 million construction loan from City National Bank of Florida for a mixed-use development in Delray Beach that will include a 30,000-square-foot food hall. [Commercial Observer] – Mike Seemuth