Gurney’s Montauk Resort and Seawater Spa reopened this week despite a report that owner BLDG Management skipped payment on a $217 million loan.
A spokesperson blamed the missed payment, first reported by the Real Deal, on an administrative error that has since been resolved.
The rep told Side Dish the loan has been extended with new terms and the resort is “thriving.”
The property, famed for its St. Tropez-style, beach side bottle service, had shut down for renovations on Dec. 8.
“We are now completing a renovation project which includes a new restaurant, and we look forward to the launch this spring,” said Justin B. Kleinman, executive vice president and chief operating officer at BLDG Management.
The 20-acre resort is preparing to launch new culinary concepts this spring, including Gigi’s Montauk — a new flagship restaurant with Mediterranean cuisine “inspired” by local ingredients, said Michael Nenner, President and COO of Gurney’s Resorts.
It will be helmed by executive chef Justin Lee, formerly of Mina Group, and executive chef de cuisine Mbaba Danso, who has been with Gurney’s Montauk since 2020, and it will replace Scarpetta Beach, a popular eatery for the past nine years.
There will also be Dune Café & Lounge, which had a soft launch earlier this winter. It features a coffee bar by day and a raw bar/cocktail lounge at night, where Regent Cocktail Club and Tillie’s once stood.
As for the oceanfront beach club, it will return with another Dolce & Gabbana takeover, with D&G designed chairs, umbrellas, and cabanas — along with the luxury fashion brand’s pop-up boutique on the East Deck and a beachside bar.
BLDG Management and the late George Filopoulos’ Metrovest Equities bought the property in 2014.
Thirty years after Mercer Street Hospitality’s John McDonald opened MercBar in Soho, the veteran restaurateur has launched Bar Mercer in Soho on the same block, at the corner of Mercer and Houston.
The eatery, at 25 West Houston, currently stands where McDonald’s former seafood-centric Mexican eatery, Bar Tulix, with Chef Justin Bazdarich, once stood, and where his Burger & Barrel stood before that. (McDonald tells Side Dish that Bazdarich left for Finland “for personal reasons,” and that he then decided to change the space’s concept, instead of its chef.)
“It’s hard to believe I’m opening a bar and restaurant where MercBar — a bar and lounge — opened 30 years ago,” McDonald said.
The 1,700 square foot space seats 65 people with an additional 12 seats at the bar. The elevated pub-style menu is from Chef Preston Clark, the executive chef at McDonald’s Lure Fishbar for the past decade. Bar Mercer’s menu offerings include a raw bar, steaks, chops and signature dishes, such as homemade pigs in a blanket, chicken liver pate, crispy branzino bar sliders, steak tartare frites with a poached quail egg, and ongoing blackboard specials — as well as oysters ordered raw, “crispy fried” or broiled.
Entrees include hangover pasta with chitarra, ham, bacon, sunny side egg, pecorino and black pepper, as well as seared whole branzino and “English” fish and chips. There’s also a global wine and spirits list, with cocktails categorized by spirit.
The room’s design is low key dark, with high gloss deep red walls, wine cabinets, vintage chairs and lots of art and photography — including vintage images of Mercer Street.
“I believe we are filling a big void in the area, with a bar and restaurant that take food seriously, but in a somewhat casual manner, not fancy, and with no gimmicks — just a small focused menu,” McDonald said.
For now, it’s dinner only, with brunch coming this spring.
McDonald’s Mercer Street Hospitality company also owns Lure Fishbar, a 21-year-staple in Soho that’s survival is now threatened by Prada, a global brand that has taken over the building’s lease from investor and art patron Peter Brandt. McDonald pays $2 million a year for its 5000 square foot space — in the basement! — and is a cult favorite for generatons of New Yorkers in business, the arts, and academia, who are coming back with their kids and, in some cases, grandchildren.
Prada reportedly wanted to replace Lure Fishbar with a Prada designer branded cafe. But a devilish move, like pushing out a local favorite, is not a good look for the image conscious brand.
McDonald says he is still hoping he’ll be able to renegotiate his lease, which expires in early 2026.
“There’s been no official contact from Prada, but I am optimistic that they will choose to extend our lease and partner in preserving the magic that happens there every day and night and do what’s best for Soho,” McDonald tells Side Dish.
