News
FANTINI POISED FOR GROWTH
March 28, 2011
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| A nearly 50-year veteran of CRE financing, Fantini & Gorga?sGeorge Fantini and his crew are focusing on multifamily deals. And by April 30, they'll complete the buy-back of their mortgage financing firm from Eastern Bank. We snapped George in his Financial District office. Typically, F&G raises about $500M a yearin debt and equity financing. Given the CRE market, much of that finds its way into multifamily deals since F&G runs a conventional and an FHA operation. For instance, in January they closed on$53.5M in financing (a first mortgage and mezz piece) forMetroPlace at Town Center in Camp Springs, Md., outside DC. As for the buy back, George says that F&G and Eastern have had a great nine-year run but agreed to an amicable split because they're heading in different directions. While Eastern—as the name implies— focuses on doing business in eastern Massachusetts, F&G is working on deals outside of Eastern?s footprint. |
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| We snapped principals Tim O?Donnell and John Gorga and COOHeather Baldassari. In this environment, George says tacklingcomplex deals is a must. For example, the team closed recently on $26M in financing for Abbott Mills in Westford, a complicated redevelopment project requiring construction, permanent and bridge loans, plus affordable housing tax credits. For multifamily,abundant financing is available from insurance companies ($50B), conduits, investment and commercial banks, which George says, are breaking down brokers doors looking for cash-flow deals. But there's more money out there than viable projects, especially since their underwriting box is narrow. So, George tells us, to hit origination targets, lenders may loosen their criteria to work with sponsors who have ?a little trail dust? on them. |
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| Here's Mark Whelan and Keith Wentzel, also key players on the team. Besides multifamily, office development prospects areslim. Sure, there may be a build-to-suit for Vertex if it leaps from Cambridge to the Seaport. But George says it's unlikely that a big new office tower will get built for quite some time given the space available and ?falling rents.? It's too risky. Except for a spectacular location, R&D on Rt. 495 is ?dead.? One Franklin isn't likely to have a groundbreaking soon since the seller?s asking price for the site is too high, dimming prospects for a new deal. Medical andbiotech are still active for the developer with tenant in hand. The next wave of new development depends on job creation and when the market turns, George says, it will turn quickly. |
