Gatehouse Capital Partners, Fort Amsterdam Capital and Crayhill Capital Management have provided Fortis Property Group with an $85 million condominium inventory loan.
The debt is collateralized by 102 residential condominium units and one retail condominium unit at The Parker, a new 168-unit multifamily luxury property overlooking the Boston Common in Downtown Boston.
Both the loan and added sponsor equity refinanced the in-place construction loan, funded construction completion and provided runway to sell out the remaining condos. Located at 55 Lagrange Street, The Parker is an exclusive property, with one of its penthouse residences recently selling for $5.4 million. The deal broke a record for the highest sales price in Boston’s Midtown neighborhood.
“The deal was underwritten, structured, negotiated and eventually executed against the backdrop of a very challenged and volatile lending environment caused by, among other things, continued inflationary headwinds, rising rates and fallout from the regional banking crisis,” Jonathan Dembling, co-founder and managing principal of Gatehouse Capital Partners, told Multi-Housing News.
“In addition, a deal of this size and complexity involved a significant number of players –from our borrower, partners and investors throughout the stack to the in-place construction lenders – all of whom had to work together to ensure everyone got what they needed to get the deal done,” said Dembling. “Understanding and projecting sales pricing and velocity in these type of market conditions was a critical focus that was in a nearly constant state of flux.”
The terms of the deal generated the flexibility and optionality for all parties to work creatively throughout the lifecycle of the transaction, Dembling said, adding that they needed to “adequately adjust concepts and constructs to suit a changing market and evolving due diligence process.”
“From there, it was all about the parties working collaboratively, and being reasonable with one another, to understand what mattered most, and finding ways to align interests to ensure the successful sell-out of this beautifully build condo project in a world-class location,” said Dembling.
