IPA Capital Markets Arranges $75.1 Million Recapitalization for The Monroe Hotel in Miami Beach
IPA Capital Markets, a division of Marcus & Millichap specializing in capital markets services for major private and institutional clients, has announced the completion of a $75.1 million mid-construction recapitalization for The Monroe Hotel, an 89-key luxury boutique hotel currently undergoing redevelopment in Miami Beach’s prestigious Faena District.
The transaction provides a new capital structure for the project as construction progresses toward the hotel’s planned opening in 2027. Located at 3010 Collins Ave., The Monroe is being transformed through a comprehensive redevelopment designed to create a high-end hospitality destination combining luxury accommodations, dining, entertainment, wellness, and distinctive guest experiences.
Bobby Werhane, Managing Director with IPA Capital Markets, led the transaction on behalf of the ownership group. He was supported by Scott Raasch, Senior Director at IPA Capital Markets, with both professionals based in the firm’s Charlotte office.
The financing represented a complex, multi-source capital markets assignment. The IPA Capital Markets team structured a four-part capital stack that brought together construction financing, bridge capital, sustainable development funding, and historic tax credit equity. Two of the capital providers represented new lending relationships for the project’s sponsor, further expanding the ownership group’s financing network.
The recapitalization includes $44 million in Commercial Property Assessed Clean Energy (C-PACE) financing from Nuveen Green Capital, $24.8 million in construction debt provided by City National Bank, $6.3 million in bridge financing from Midland States Bank, and historic tax credit equity financing from PNC Bank.
The overall project carries a total development cost of approximately $125.5 million, making the recapitalization an important milestone in the hotel’s transformation.
“This was a complex, multisource recapitalization, and completing it required creativity and strong relationships across the capital stack,” said Werhane. “We’re proud to have delivered a structure that positions The Monroe for a successful opening, and we appreciate the sponsor’s trust and partnership throughout the process.”
Once completed, The Monroe Hotel is expected to offer an upscale hospitality experience tailored to travelers seeking luxury, privacy, entertainment, and access to Miami Beach’s vibrant cultural scene.
The five-star boutique property will feature 89 guestrooms and suites, including 15 suites ranging from approximately 488-square-foot junior suites to a 1,257-square-foot presidential suite. The variety of accommodations is designed to appeal to both leisure and luxury travelers while providing a differentiated alternative to larger resort properties in the Miami Beach market.
Dining and entertainment will represent a major component of the redevelopment. The hotel is planned to include a 5,000-square-foot full-service restaurant and bar, providing guests and local visitors with a dedicated destination for dining and socializing.
A rooftop bar and event venue will offer panoramic views of the surrounding Faena District, creating an additional gathering space for guests, private events, and special occasions. The rooftop component is expected to capitalize on the property’s location and provide visitors with an elevated perspective of Miami Beach.
The Monroe will also incorporate several amenities designed to create a more comprehensive lifestyle experience. Plans include an in-house recording studio, a swimming pool and deck with outdoor dining, and private beach services operated through Boucher Brothers, a property management company specializing in waterfront and beach experiences.
Wellness facilities will further enhance the hotel’s offering, with plans for a full-service spa and fitness center. These amenities are intended to appeal to travelers who increasingly prioritize wellness, recreation, and personalized experiences when selecting luxury accommodations.
The hotel’s location is another significant component of the project. The Monroe is situated approximately a 10-minute walk north of South Beach, placing it within convenient reach of one of Miami Beach’s best-known entertainment and hospitality areas while maintaining its connection to the Faena District.
The Faena District has become one of Miami Beach’s most recognizable luxury destinations since its official designation in 2014. The district is known for combining high-end hospitality, luxury residential developments, cultural attractions, art, fashion, and entertainment.
Its distinctive identity has helped establish the surrounding area as an important destination for affluent travelers, investors, residents, and international visitors.
The redevelopment of The Monroe is therefore taking place within a market characterized by significant luxury hospitality activity and strong demand for distinctive, experience-driven properties. Rather than competing solely on room inventory, the project is designed around a combination of boutique accommodations, premium dining, wellness, entertainment, and access to Miami Beach’s cultural and recreational attractions.
From a financing perspective, the successful recapitalization demonstrates the importance of creative capital structures in supporting large-scale hospitality redevelopment projects. By combining multiple sources of financing, IPA Capital Markets was able to address different components of the project’s capital requirements while supporting construction through the remaining development period.
The use of C-PACE financing also highlights the increasing role of alternative and sustainability-oriented capital in commercial real estate development. Alongside conventional construction and bridge financing, such funding can provide developers with additional flexibility when structuring complex projects.
With construction continuing and an anticipated opening in 2027, The Monroe Hotel is positioned to become a new luxury boutique destination within Miami Beach’s evolving hospitality landscape.
The completed property is expected to combine sophisticated accommodations with restaurants, rooftop entertainment, wellness facilities, beach services, and curated guest experiences. Its proximity to South Beach and its location within the Faena District further strengthen its potential appeal.
For IPA Capital Markets, the transaction adds another significant hospitality financing assignment to its portfolio while demonstrating the firm’s ability to structure sophisticated capital solutions involving multiple lenders and investment sources.
As The Monroe progresses toward completion, the $75.1 million recapitalization provides the financial foundation needed to advance the redevelopment and bring the project closer to its planned 2027 opening.
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