Institutional Property Advisors Arranges $75.1M Recapitalization for The Monroe Hotel in Miami Beach's Faena District

MIAMI BEACH, Fla. — Institutional Property Advisors arranged a $75.1 million mid-construction recapitalization for The Monroe Hotel, an 89-key luxury boutique hotel undergoing redevelopment at 3010 Collins Avenue in Miami Beach's Faena District, the firm announced Sept. 4, 2026.

The transaction, structured across four capital sources, carries a total project cost of $125.5 million — implying an all-in cost of approximately $1.41 million per key. The hotel is scheduled to open in 2027 following a comprehensive renovation.

Capital Stack Structure

Bobby Werhane, managing director with IPA Capital Markets, led the transaction on behalf of the ownership group, with support from Scott Raasch, senior director at IPA Capital Markets. Both are based in the firm's Charlotte office.

The recapitalization comprises $44 million in Commercial Property Assessed Clean Energy 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. Two of the four lending relationships were new to the sponsor.

"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."

The reliance on C-PACE financing and historic tax credits reflects significant investment in building systems, energy efficiency, and preservation of the property's historic elements — characteristics common to adaptive reuse projects within Miami Beach's older hotel stock.

Property and Amenity Program

The Monroe Hotel is located at the corner of 30th Street and Collins Avenue, a 10-minute walk north of South Beach and within the Faena District corridor. The building is a historic hotel structure undergoing a full gut renovation and rebranding.

Upon completion, the five-star boutique property will feature 15 suites ranging from 488-square-foot junior suites to a 1,257-square-foot presidential suite. Additional programming includes a roughly 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, and a full-service spa and fitness center.

The property's room count was rationalized from a prior configuration of 110 keys to 89 keys as part of the luxury repositioning strategy.

Faena District Context

The Faena District was officially designated in 2014 as one of Miami Beach's most coveted cultural destinations, known for its ultraluxury hotels, upscale residences, and arts and fashion scene.

Mid-construction recapitalizations have become more common across South Florida's hospitality pipeline as construction costs, financing terms, and lending conditions have shifted. The Monroe transaction reflects a broader pattern in which specialized capital markets teams assemble multi-tranche structures to complete large, design-intensive hotel redevelopments.

About the Firms

Institutional Property Advisors is a division of Marcus & Millichap (NYSE: MMI) focused on capital markets services for major private and institutional clients. IPA Capital Markets arranges debt, equity, and recapitalizations across institutional-scale transactions in the commercial real estate sector.

Nuveen Green Capital provided C-PACE financing. City National Bank and Midland States Bank provided construction and bridge debt, respectively. PNC provided historic tax credit equity financing for the transaction.

Sources

Institutional Property Advisors — Official Announcement, Sept. 4, 2026