Block Island, RI The commercial real estate division of Bank Rhode Island (BankRI) has provided $12.5 million financing to 32 Dodge Street Block Island, LLC for the acquisition and renovation of two hotel properties. The loan was structured as a construction/mini-permanent utilizing a SWAP product, which will allow the borrower to lock into a current fixed rate for ten years, to fund upon completion of construction.
The project encompasses the purchase of the hotels known as Gables Inn at 54 Dodge St. and The Surf Hotel at 32 Dodge St., which dates back to 1876. The properties are approximately 500 feet apart and will be treated as a single entity, rebranded as Block Island Beach House.
Once complete, the resort will feature a total of 76 units. The main building – former Surf Hotel – will consist of 12 newly constructed units and 32 renovated units. It also will house a first floor full-service dining room and its own private beach. The property previously known as the Gables Inn will feature 15 newly constructed units, 17 renovated spaces, and a new pool. The hotels also will offer event space for weddings and other functions.
The property will be managed by Lark Hotels, which specializes in historic stewardship of hotels and manages a collection of 26 hotel properties throughout tourist communities in New England, New York, and California. Leading the development team is Robert Blood, founder and CEO of Lark Hotels, and Richard Cooper, real estate developer.
“The enthusiasm that Bank Rhode Island and their team have shown for our project on Block Island has been extremely refreshing,” said Robert Blood. “We feel like they are truly our partners in this endeavor.”
Jane Long, AVP of commercial real estate for BankRI, who facilitated the deal on the bank’s behalf said, “This is an exciting project that will help to fuel Block Island’s economy, particularly with increasing occupancy where demand often exceeds capacity during the tourist season. The renovation of these properties will make them the most upscale hotels on the island and will allow the owners to expand the number of days opened – we look forward to seeing our client’s vision come to life.”