Boston, MA Gatehouse Capital Partners and Fort Amsterdam Capital, along with Crayhill Capital Management have provided an $85 million condo inventory loan to Fortis Property Group, a vertically-integrated real investment management company with a portfolio valued in excess of $3 billion.
The loan is collateralized by 102 residential condominium units and one retail condominium unit at The Parker, a new, 168-unit luxury tower overlooking the Boston Common in downtown.
The loan and additional sponsor equity were used to refinance the in-place construction loan, fund construction completion, and provide runway to sell out the remaining condos. The Parker is one of the city’s most sought-after residential properties, with one of its penthouse units recently breaking a record for the highest sales price in the city’s Midtown neighborhood at $5.368 million.
“We’re very pleased to deliver this highly-customized and flexible financing solution for Fortis at The Parker,” said Jonathan Dembling, co-founder and managing principal of Gatehouse Capital Partners. “This loan will provide our seasoned borrowing partner the opportunity to successfully deliver best-in-class condo residences in a top-tier, supply-constrained Boston market.”
The Parker, built in conjunction with AECOM Tishman, is located at 55 Lagrange St. at the southeast corner of the Boston Common. It offers a hotel-like living experience amenitized with an ultra high-end hardscaped roofdeck, speakeasy-inspired cocktail lounge, billiards room, screening theater, and fitness center designed by Rob Gronkowski’s Gronk Fitness.
“This is a very exciting luxury condo tower located in a high barrier-to-entry market with limited competing supply, proven demand, liquid price points and near-term unit closings,” said David Schwartz, founder and managing partner of Fort Amsterdam Capital. “We look forward to working with the Fortis team to support the sell-out of this thoughtfully built and ambitious project.”
With the commercial real estate market enduring an unprecedented array of headwinds – from continued inflationary concerns, to elevated interest rates and the ongoing regional banking crisis – sophisticated, well-capitalized private lenders continue to serve as a lifeline for projects and sponsors in need of support.
Schwartz said, “Getting this deal done for Fortis in this market speaks to Fort Amsterdam Capital’s and Gatehouse’s ability to solve problems swiftly and effectively for the borrower community. We remain very much open for business and are excited for the opportunity to provide capital solutions for other excellent developments of The Parker’s caliber.”
The financing arrangement was negotiated by Galaxy Capital’s Henry Bodek.