Photo by James Sanna | Banker & Tradesman Staff
A Seaport District luxury condominium development that struggled with construction delays and slow sales will be transferred to lender Cottonwood Group’s ownership, according to a report.
Developer Cronin Group of Boston is planning a “consensual transition of control” of the 114-unit St. Regis Residences, Boston at 150 Seaport Blvd., local real estate agent Jack Gately reported on his Substack blog, citing a report to investors issued in July.
The report blamed the project’s disappointing sales to rising interest rates and changes in the post-COVID real estate environment.
Built on the former Whiskey Priest and Atlantic Beer Garden property, the project developed by The Cronin Group of Boston originally received a $345 million first mortgage from Madison Realty Capital in 2022.
Vertical construction began in 2021, following two years of site work and installation of pilings to support the 22-story tower.
In 2023, after the property hosted an accelerated sale of 10 units, Cronin Group paid off the construction loan and received $240 million in mortgage financing from Cottonwood.
Sales have averaged $2,619 per square foot, according to a report by The Collaborative Companies released in March. At the time, 54 percent of the units had been sold.
The original broker on the project, Gibson Sotheby’s International Realty, filed and eventually settled a lawsuit against Cronin Group in a dispute over alleged unpaid commissions.
Developer Jon Cronin acquired the grand penthouse last year for $23.5 million in shell condition, and listed the completed, 10,609 square-foot home in June for $49 million.
The Massachusetts condominium market has flattened with statewide prices holding steady on a year-over-year basis, while inventory has risen by double digits.
“Cottonwood has been a trusted partner from the start of their involvement. They share our belief in the unparalleled quality, lifestyle, and value this building offers, and we are excited to work alongside them in this new phase,” CEO Jon Cronin said in a statement issued today. “With its sweeping waterfront views, uniquely exquisite residences, signature butler service and bespoke amenities, now coupled with Cottonwood’s financial resources and operational expertise, I have no doubt that the enhanced offerings will continue to make this property the best place to call home in Boston.”
A message was left with Cottonwood Group seeking comment.
Editor’s note: This report has been updated with a statement from Cronin Group CEO Jon Cronin.
