Assouline-Busch Capital has completed a $75.1 million mid-construction recapitalization for The Monroe Hotel, an 89-key luxury boutique property under redevelopment in the Faena District of Miami Beach. The hotel, located at 3010 Collins Ave. and formerly known as the Red South Beach Hotel, is being repositioned and is slated to reopen in 2027 following a comprehensive upgrade program.
The planned five-star hotel will deliver a boutique-scale offering with a range of luxury amenities. Design plans call for a 5,000-square-foot full-service restaurant and bar, providing food-and-beverage activation at the property. The program also includes a rooftop bar and event venue designed to capture panoramic views across the Faena District, an in-house recording studio, and a pool and deck with outdoor dining. Guests will also have access to a full-service spa and fitness center, supporting the asset’s positioning in the upper-tier hospitality segment.
The recapitalization brings together multiple sources of debt and structured capital. The package includes $44 million in Commercial Property Assessed Clean Energy (C-PACE) financing provided by Nuveen Green Capital, which is earmarked to support qualifying energy-efficient and sustainable improvements at the property. In addition, City National Bank supplied $24.8 million in construction debt, while Midland States Bank contributed $6.3 million in bridge financing, adding flexibility to the capital structure during the redevelopment phase.
The capital stack also features historic tax credit equity financing from PNC Bank, leveraging the property’s eligibility for historic incentives to help fund the business plan. The Monroe’s total project cost is reported at $125.5 million, underscoring the scale of the repositioning effort relative to the boutique key count and amenity package.
Institutional Property Advisors (IPA) arranged the financing for the sponsor, with Bobby Werhane and Scott Raasch leading the assignment. By assembling C-PACE financing, bank construction and bridge loans, and historic tax credit equity, the advisory team structured a recapitalization that supports the remaining development timeline and the planned opening in 2027.
