JLL’s Hotels & Hospitality Group has arranged a $54 million refinancing for Baron’s Cove, a 67-room hotel in Sag Harbor, New York, to fund a comprehensive renovation starting in October 2025.
JLL‘s Hotels & Hospitality Group has secured a $54 million refinancing package for Baron’s Cove, a hotel located in Sag Harbor, New York. The refinancing package was arranged by Blue Owl Capital on behalf of the Borrower, which is a partnership between Blue Flag Capital Real Estate and Bain Capital Real Estate. The loan was structured as a 3-year floating-rate contract.
Baron’s Cove is located at 31 W Water St. and has 67 rooms, including garden suites and suites with views of the harbor. Built in the late 50s and renovated in 2016, the hotel features a number of amenities such as a salted-water pool during the summer, a fitness center and several dining options. The new funding will be used to support a seven-month renovation project that is scheduled to start in October 2025. This renovation will transform the guestrooms, exterior areas and public spaces. It will also include a rebranding strategy and introduce new food and drink concepts.
Refinancing includes provisions for housing of employees, which addresses operational needs on the high-cost Hamptons market. Sag Harbor is a wealthy village that is located conveniently near the marina. Boating is a popular activity in this area. Sag Harbor is a year-round tourist destination in the Hamptons, thanks to wealthy New Yorkers who have built permanent residences there.
JLL’s team in this transaction consisted of Americas CEO Kevin Davis along with Managing Directors Mark Fisher, Jillian Mariutti Senior Director, and Connor Medzigian Director. The refinancing helps the hotel maintain its position in a marketplace with limited supply and an increasing demand for accommodation.
