Marcus & Millichap’s IPA Capital Markets Arranges $75.1 Million Recapitalization for The Monroe Hotel in Miami Beach’s Faena District
Marcus & Millichap’s IPA Capital Markets Arranges $75.1 Million Recapitalization for The Monroe Hotel in Miami Beach’s Faena District
Marcus & Millichap (MMI), through its IPA Capital Markets division, arranged a $75.1 million mid-construction recapitalization for The Monroe Hotel, an 89-key luxury boutique hotel under redevelopment at 3010 Collins Ave. in Miami Beach’s Faena District.
MIAMI BEACH, Fla.--(BUSINESS WIRE)-- IPA Capital Markets, a division of Marcus & Millichap (NYSE:MMI) specializing in capital markets services for major private and institutional clients, announced today the $75.1 million mid-construction recapitalization of The Monroe Hotel, an 89-key luxury boutique hotel under redevelopment at 3010 Collins Ave. in Miami Beach’s Faena District.
Bobby Werhane, managing director with IPA Capital Markets, led the transaction on behalf of the property’s ownership group, with support from Scott Raasch, IPA Capital Markets senior director, both based in the firm’s Charlotte office. The team structured a capital stack comprising four sources, two of which represented new lending relationships for the sponsor.
The recapitalization included $44 million in Commercial Property Assessed Clean Energy (C-PACE) financing from Nuveen Green Capital, $24.8 million in construction debt from City National Bank, $6.3 million in bridge financing from Midland States Bank, and historic tax credit equity financing from PNC Bank.
The Monroe has a total project cost of $125.5 million.Scheduled to open in 2027 after a comprehensive renovation, the five-star boutique hotel will feature 15 suites ranging from 488-square-foot junior suites to a 1,257-square-foot presidential suite; a 5,000-square-foot, full-service restaurant and bar; a rooftop bar and event venue with panoramic views of the Faena District; an in-house recording studio; a pool and deck with outdoor dining; private beach service through Boucher Brothers property management company; and a full-service spa and fitness center.
“This was a complex, multisource recapitalization, and completing it required creativity and strong relationships across the capital stack,” Werhane said. “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.”
Located a 10-minute walk north of South Beach, the Faena District was officially designated in 2014 as one of Miami Beach’s most coveted cultural destinations. It is known for its ultraluxury hotels, upscale residences, and thriving arts and fashion scene.
About IPA Capital Markets
IPA Capital Markets is a division of Marcus & Millichap (NYSE: MMI). IPA Capital Markets provides major private and institutional clients with commercial real estate capital markets financing solutions, including debt, mezzanine financing, preferred and joint venture equity, and sponsor equity. For more information, please visit institutionalpropertyadvisors.com/capital-markets.
Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services, with offices throughout the United States and Canada. Marcus & Millichap closed 8,818 transactions with a sales volume of $50.8 billion in 2025. At year-end, the company had 1,808 investment sales and financing professionals in more than 80 offices providing investment brokerage and financing services to commercial real estate sellers and buyers. For additional information, visit www.MarcusMillichap.com.
Recapitalization is a deliberate change to a company's mix of debt and equity—how much it borrows versus how much is funded by shareholders—accomplished by issuing or repaying debt, buying back shares, or issuing new shares. It matters to investors because it alters the company's risk profile, potential returns and cash flow stability: increasing debt can amplify returns but raises the chance of financial stress, while adding equity can dilute ownership but lower default risk—like swapping between a mortgage and savings to reshape household finances.
capital stackfinancial
The capital stack is the ordered list of sources of money a company or project uses, showing who gets paid first and who takes more risk — think of it like layers in a cake where the bottom slices are safest and the top slices are most exposed. Investors use it to judge potential return and risk: positions lower in the stack (like senior lenders) get steadier, smaller returns but higher protection, while higher positions (like common equity) can earn more if things go well but can lose value first.
C-PACEfinancial
A C‑PACE (Commercial Property Assessed Clean Energy) program is a way for commercial property owners to finance energy efficiency, renewable energy, or resiliency upgrades through a long‑term assessment added to the property tax bill. Think of it like a mortgage specifically for building upgrades that stays with the property and is repaid via tax installments. Investors care because C‑PACE liens affect a building’s cash flow, create a senior repayment obligation on the property, and can change credit and resale dynamics tied to long‑term cost savings and project risk.
bridge financingfinancial
Bridge financing is short-term funding a company uses to cover expenses until longer-term financing or a sale comes through. Think of it as a temporary loan or financial “bridge” that keeps operations running—similar to borrowing to cover a gap between paychecks. Investors watch bridge financing because it can signal cash pressure, potential dilution, or higher costs to raise capital, which affect a company’s risk and value.
