This Week's Boston Deal Sheet
The developer of a high-end Seaport condo tower has received $240M in financing as it looks to accelerate sales amid a slow market.
Cronin Development received the senior mortgage financing from Cottonwood Group for its 22-story St. Regis Residences development at 150 Seaport Blvd.
Also on Monday, sales firm The Collaborative Cos. announced it worked with Cronin on a bid sale for 10 units at the tower. It said the bids started at $1.4M for one-bedroom units and $3M for two-bedroom units, and each sold above the starting bids to all-cash buyers.
But the Boston Globe reported that the starting bids were around 20% below prior comparable sales and that the move was an effort to stir up interest in the building, which has had a slower-than-expected sales pace.
Cottonwood Group, a Los Angeles-based private equity firm that provides equity and debt for real estate projects, previously developed the $900M EchelonSeaport project.
"Our optimism for Boston is fueled by the triumph of our EchelonSeaport project," Cottonwood CEO Alexander Shing said in a statement. "The St. Regis Residences, Boston is just one of our many ongoing investments in the city, and we are excited to collaborate with Jon Cronin to sustain the positive momentum that has established the Seaport as one of Boston's premier living destinations."
SALES
Intel Corp. sold its office building at 75 Reed Road in Hudson to an entity linked to National Development for $12M, according to public records. The sale comes after another developer had proposed a 1.3M SF distribution center on the site, which led to community outrage and protest, the Boston Globe reported.
The 417K SF office building was once used to make the tech company's microchips before processes were moved overseas. National Development hasn't announced any plans for the property and didn't respond to a request for comment.
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Boston Properties agreed to sell a 45% interest in its 290 and 300 Binney St. life sciences developments in Cambridge to Norges Bank Investment Management. The deal values the properties at roughly $1.66B, or $2,050 per SF. Norges is investing $746.4M in both properties, which total 810K SF and are fully pre-leased. Boston Properties said it will maintain 55% ownership of the properties and will provide development, property management and leasing services.
LEASES
Artificial intelligence company GreenSight signed a 14K SF lease at The Flatley Co.'s Schrafft Center in Charlestown. The company is relocating and expanding from its 10K SF at 12 Channel Center St. in the Seaport. Property amenities include a private shuttle, a gym, childcare and a cafeteria. Avison Young's Kirk Weller and Jeffrey Gates represented GreenSight in the lease.
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Biotech company EMD Serono signed a 60K SF lease at 200 Pier 4 Blvd. in the Seaport, the Boston Globe reported. The company will move its headquarters from One Technology Place in Rockland. The new location can initially accommodate 200 of its 400 employees. The company also has a research site in Billerica that is home to 250 employees, as well as 400 other employees across the country who won't be affected by the move.
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AMC Theatres opened the AMC Causeway 13, a 67K SF theater next to TD Garden. The movie theater giant opened at The Hub on Causeway last Thursday, marking the first AMC location to open in Boston since 2017, the Boston Globe reported. The location will join 10 others, including branches next to Boston Common, in Somerville’s Assembly Row and Dorchester’s South Bay shopping center.
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Coworking company IWG plans to open several new coworking spaces in the Greater Boston area that will total 102K SF, the Boston Business Journal reported. The locations for its Regus-branded coworking spaces are Ipswich, Marshfield, Southborough, Springfield, Westwood and Worcester, as well as an HQ-branded location in Leominster. The company already operates 40 locations in the state, including in downtown Boston and the Seaport.
PERSONNEL
CBRE hired Chris Munley and Colin Behr to join its capital markets team focusing on retail in the mid-Atlantic and Northeast regions. Munley was hired as executive vice president, leaving his most recent role as senior managing director at JLL. He brings 14 years of experience and has closed on more than $6.4B in retail transactions.
Behr was hired as senior vice president, also leaving his role as managing director at JLL. He has completed more than $4.5B in retail transactions. Both Munley and Behr will focus on multitenant shopping center transactions and will work with a handful of partners in both regions, including Nat Heald in Boston.
CONSTRUCTION AND DEVELOPMENT
On Thursday night, the Boston Planning & Development Agency's board of directors approved eight new development projects that total 872K SF and 656 housing units. The board also approved the tentative designation of Trinity Financial to redevelop the Austin Street parking lots in Charlestown into a 686-unit, mixed-use project. Emerson College, Boston College and Tufts University's Health Sciences Campus' institutional master plans were approved during the meeting.
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Sturdy Memorial Hospital celebrated the groundbreaking of its new Sturdy Health Cancer & Specialty Care medical office building in Attleboro. The new three-story, 60K SF building is a $50M investment for the company. Hospital executives were joined by Consigli Construction Co. and Redgate, which have acted as partners in the development. Services include cardiology, gastrointestinal, general surgery, oncology, pain management and urology.
