The St Regis Residences (former Whiskey Priest site) | 150 Seaport Blvd | Seaport

[beck4537]

This looks like it's coming out even better than the renderings! And it seems like the luxury condo market here is following NY's recent boom in sales with folks returning to the City:

Boston Condos Set to Rise With $345M Loan From Madison Realty Capital

Cronin Development landed $345 million of construction financing for a mixed-use condominium development in Boston’s Seaport District.

commercialobserver.com

Wouldn't Cronin already have received the loan at the inception of thus project?

 

[stefal]

Wouldn't Cronin already have received the loan at the inception of thus project?

I figured that the article was very late to the game, but the lending firm is quoted:

“We are pleased to expand our presence in Boston to deliver an attractive and complex financing solution mid-construction for a significantly pre-sold property to Cronin Development, a developer with over 20 years of experience developing and managing real estate projects in the Boston area.”

Anybody seen this kind of financing before?What have they been using the past 2 years?

 

[Vivanna]

Wouldn't Cronin already have received the loan at the inception of thus project?

It's a refinance of the original loan, probably got better terms, and much cheaper now that they have sold like half the units.

 

[Neon]

Interesting hole in the concrete pour

 

[Neon]

Hole Pic

 

[Wiltonion]

Interesting hole in the concrete pour

I wonder if this is for some fancy stairway access for the penthouse condo to a roof deck?

 

[Vivanna]

I wonder if this is for some fancy stairway access for the penthouse condo to a roof deck?

That would be pretty spectacular! Or is there common amenity space on the roof I wonder?

 

[Bananarama]

It's probably a skylight. That space faces north/northeast.

 

[stoweker]

I figured that the article was very late to the game, but the lending firm is quoted:



Anybody seen this kind of financing before?What have they been using the past 2 years?

I believe it was Bank OZK in the A piece then Mack Credit strategies in the B piece for the original development loan.

 

[stoweker]

Wouldn't Cronin already have received the loan at the inception of thus project?

He did, this is a refinance of the original construction loan.

 

[Rover]

I have heard that the old lender had him by the scruff of his neck last year and tried to sell the debt after cramming the developer down and taking like 4 pounds of flesh from him - there were like 10% of units sold at that time (but who knows what they've done since this went down a year ago on sales). My understanding is that this represents an upsize of the current loan by like $20mm which isn't really a good thing for a condo and my gut is it probably means his terms have eroded if he needed to take out more cash. Still waiting for someone to take me up on the best that this thing goes back to the bank.

Also I think the project looks great - don't get me wrong - and the units will get sold - I just don't think this ends well for the equity investors, but who knows, just one person's opinion.

No offense but your predictions haven't been too accurate lately. Have any of the projects that you said were dead and buried actually halted work since the pandemic began?

 

[stoweker]

No offense but your predictions haven't been too accurate lately. Have any of the projects that you said were dead and buried actually halted work since the pandemic began?

The only project I said was dead and buried was Winthrop Square and that Don Peebles thing. Winthrop Square I’m wrong on, sure. Peebles wont build his deal.

This is different - the building will be completed, the sponsor has a construction guarantee and well has to complete the project. It’s what happens afterwards that I’m interested in; I don’t think the developer can sell enough units to not get foreclosed on after delivery. That doesn’t impact the building - it will still be there operating - but my gut is that it gets deflagged as a St Regis within 24 months of opening and that the condos end up getting dumped in a fire sale by the lender. The only building specific thing with this I guess is thatI can’t see the giant restaurant opening but who knows.

 

[BeeLine]

IMG_1352 by Bos Beeline, on Flickr
IMG_1353 by Bos Beeline, on Flickr
IMG_1359 by Bos Beeline, on Flickr
IMG_1362 by Bos Beeline, on Flickr
IMG_1363 by Bos Beeline, on Flickr
IMG_1365 by Bos Beeline, on Flickr
IMG_1367 by Bos Beeline, on Flickr
IMG_1369 by Bos Beeline, on Flickr
IMG_1371 by Bos Beeline, on Flickr

 

[stellarfun]

I figured that the article was very late to the game, but the lending firm is quoted:



Anybody seen this kind of financing before?What have they been using the past 2 years?

The project is over-budget.

The Globe in November 2017, said the project would cost $260 million.
https://www.boston.com/news/busines...eaport-sidewalk-selling-for-nearly-2-million/

In October 2018, JPMorgan Chase provided a $306.5 million construction loan.
https://rebusinessonline.com/jpmorg...ction-loan-for-st-regis-residences-in-boston/

^^^ That loan amount presumably included an allowance for contingencies.

And then Cronin ran out of money, and JPMorgan apparently wouldn't lend him more, so a re-financed construction loan for an amount that's nearly $40 million above the JPMorgan loan was secured. The margins must be rather thin at this point.

“We are thrilled to engage Madison Realty Capital as a single source of financing to complete this luxury residential product, which will be the last waterfront residential development in the Seaport District,” Jon Cronin, founder of Cronin Development, said in a statement.

[italics mine]
https://commercialobserver.com/2022...e-with-345m-loan-from-madison-realty-capital/

 

[bigpicture7]

...cronin is hosed. i don't get why i take flack for that here, he's going to get wiped out.

I dunno, maybe because not everyone on aB gets off on kicking a guy when he's down? Especially one who brought to life one of the coolest new designs in quite some time. You are acting as if your langugage and tone is objective and neutral. It is not; it sounds like you're cheering for him to fail. Here's what a more objective tone sounds like for the same basic message:
"Cronin faces a significantly adverse situation with regard to his cost overruns, the terms of his financing, and the implications of slow initial sales. He may not be able to hold onto the property and its St. Regis branding unless sales pick up substantially in the near term."

You're of course free to use whatever tone you want; but when you ask "I don't get why I take flack for that on here," remember that your aB audience is free to react however they want too.

 

[Gunner02]

The project is over-budget.

The Globe in November 2017, said the project would cost $260 million.
https://www.boston.com/news/busines...eaport-sidewalk-selling-for-nearly-2-million/

In October 2018, JPMorgan Chase provided a $306.5 million construction loan.
https://rebusinessonline.com/jpmorg...ction-loan-for-st-regis-residences-in-boston/

^^^ That loan amount presumably included an allowance for contingencies.

And then Cronin ran out of money, and JPMorgan apparently wouldn't lend him more, so a re-financed construction loan for an amount that's nearly $40 million above the JPMorgan loan was secured. The margins must be rather thin at this point.


[italics mine]
https://commercialobserver.com/2022...e-with-345m-loan-from-madison-realty-capital/

I mean there is no way it can be surprising. Their initial estimation had been 2020 delivery. We are looking at Q2, minimum, 2022. They were still driving piles when the building was supposed to be finished. It was, after all, a 22 story Luxury Residence built on a mud pile.

 

[guitarguynboston]

This really is a gorgeous building. Wish we had a few of the "New Boston Tallesty" with that same level of great Architecture for a glass tower.

Even at this height this thing would have stood out amazingly in any other neighborhood besides the Seaport(Sea-Glass-port) so much better.

 

[Vivanna]

its way over budget, cronin is hosed. i don't get why i take flack for that here, he's going to get wiped out. the project will be finished but my gut is that it won't be a st regis for long and madison is going to take back the chattel and sell units at a discount. watch what happens over the next 24 months when they hit the first loan extension hurdle.

Sounds like you've got some personal vendetta against the guy and this project, whatever. The building is spectacular and Boston needs more of this architecture.

 

[BeeLine]

IMG_1607 by Bos Beeline, on Flickr
IMG_1642 by Bos Beeline, on Flickr
IMG_1621 by Bos Beeline, on Flickr
IMG_1643 by Bos Beeline, on Flickr
IMG_1648 by Bos Beeline, on Flickr
IMG_1649 by Bos Beeline, on Flickr
IMG_1653 by Bos Beeline, on Flickr
IMG_1654 by Bos Beeline, on Flickr
IMG_1680 by Bos Beeline, on Flickr
IMG_1656 by Bos Beeline, on Flickr
IMG_1660 by Bos Beeline, on Flickr
IMG_1664 by Bos Beeline, on Flickr

 

[jl326]

They've been pushing the branding as one of its big draws. Not saying that it would, but just to entertain some of the speculation in this thread of how things may/could turn out, it'd be interesting if this were to lose the St. Regis branding relatively shortly after completion. I'd be pissed. I think the avg. asking price per sqft. of this place is the highest in the area, in part due to the brand.

Also, building on a mud pile and the pandemic did nothing to help with cost overruns, but I really hope that future projects don't use this example as justification for building boring, simple, ugly boxes going forward. That would be real shame.