JLL’s Hotels & Hospitality Group arranges $54M refinancing for Baron’s Cove in Sag Harbor, NY

NEW YORK CITY, June 30, 2025 – JLL's Hotels & Hospitality Group announced today it has arranged a $54 million refinancing of Baron's Cove, a 67-room luxury boutique hotel in Sag Harbor, New York.

JLL worked on behalf of the borrower, a partnership between Blue Flag Capital and Bain Capital Real Estate, to secure a three-year, floating-rate loan through Blue Owl Capital-managed funds.

Baron's Cove, located at 31 W Water St., features 67 well-appointed guestrooms, including luxurious lofted suites with panoramic harbor views and private garden accommodations. Built in the late 1950s and renovated in 2015, the property offers a comprehensive resort experience with amenities including a seasonal saltwater pool, lounge, complimentary bicycles and kayaks, a full-service wellness center, a tennis court and signature dining options at The Restaurant at Baron's Cove and The Lounge.

The financing package will be used for a comprehensive renovation scheduled to begin in October 2025. The seven-month project will enhance all aspects of the guest experience, including complete guestroom transformations, reimagined public spaces and upgraded exterior areas. The renovation will coincide with a strategic rebranding initiative and introduction of elevated food and beverage concepts. The financing also provides funds to secure employee housing, addressing a critical operational need in the high-cost Hamptons market while allowing the sponsors to recapitalize from their initial acquisition financing.

Located in the heart of Sag Harbor, one of the most affluent villages in the Hamptons, the hotel sits just 11 miles from Southampton, seven miles from East Hampton and less than a three-hour drive from New York City. The property benefits from its prime waterfront location near Sag Harbor's historic marina, positioning it at the center of the area's boating and yachting activities.

The Hamptons attract approximately seven million visitors annually, drawing from the roughly 18 million people located within a three-hour drive. While the area's high season traditionally runs from May through September, Sag Harbor has evolved into a year-round destination due to wealthy New Yorkers establishing permanent residences in the area.

The JLL Hotels & Hospitality team was led by Americas CEO Kevin Davis, Managing Director Mark Fisher, Senior Director Jillian Mariutti and Director Connor Medzigian.

"Baron’s Cove presented a unique opportunity to finance a high-quality boutique hotel in an ultra-high-barrier-to-entry market that caters to an affluent clientele, backed by experienced institutional sponsorship," said Davis. "The Hamptons hotel market continues to demonstrate remarkable resilience with limited new supply and increasing demand from affluent travelers seeking luxury accommodations in prestigious coastal destinations."

JLL’s Hotels & Hospitality Group has completed more transactions than any other hotels and hospitality real estate advisor over the last five years, totalling $83 billion worldwide. The group’s 370-strong global team in over 20 countries also closed more than 7,350 advisory, valuation and asset management assignments. Our hotel valuation, brokerage, asset management and consultancy services have helped more hotel investors, owners and operators achieve high returns on their assets than any other real estate advisor in the world.

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Blue Flag Capital, a Boston-based real estate private equity firm established in 2019, manages over $1.03 billion in assets, focusing on hospitality.

Founded in 1984, Bain Capital is one of the world’s leading private investment firms. We are committed to creating lasting impact for our investors, teams, businesses, and the communities in which we live. As a private partnership, we lead with conviction and a culture of collaboration, advantages that enable us to innovate investment approaches, unlock opportunities, and create exceptional outcomes. Our global platform invests across five focus areas: Private Equity, Growth & Venture, Capital Solutions, Credit & Capital Markets, and Real Assets. In these focus areas, we bring deep sector expertise and wide-ranging capabilities. We have 24 offices on four continents, more than 1,850 employees, and approximately $185 billion in assets under management. To learn more, visit www.Baincapital.com. Follow @Bain Capital on LinkedIn and X (Twitter).

Blue Owl (NYSE: OWL) is a leading asset manager that is redefining alternatives^®.

With $273 billion in assets under management as of March 31, 2025, we invest across three multi-strategy platforms: Credit, GP Strategic Capital, and Real Assets. Anchored by a strong permanent capital base, we provide businesses with private capital solutions to drive long-term growth and offer institutional investors, individual investors, and insurance companies differentiated alternative investment opportunities that aim to deliver strong performance, risk-adjusted returns, and capital preservation.

Together with over 1,200 experienced professionals globally, Blue Owl brings the vision and discipline to create the exceptional. To learn more, visit www.blueowl.com.