Cottonwood Group funds $240m Boston luxury multifamily development 

The Los Angeles-based real estate manager is seeking more large-scale projects.

Cottonwood Group, a Los Angeles-based real estate private equity manager, originated a $240 million senior mortgage for the St Regis Residences in Boston, a luxury multifamily property in the city’s Seaport District. Cronin Development, a local developer, is the sponsor. 

Alexander Shing, chairman and chief executive of Cottonwood Group, said the firm’s previous work in Boston, including the nearby Echelon Seaport project, helped to bolster Cottonwood’s confidence in the city’s real estate landscape. 

“The St Regis Residences, Boston is just one of our many ongoing investments in the city,” Shing said, noting the Seaport market is becoming more of a luxury living destination. 

Jon Cronin, chief executive of Cronin Development, said the firm selected Cottonwood to provide the loan due to its capacity to provide senior financing for large-scale, luxury developments. 

“Cottonwood was able to quickly understand our investment thesis and execution needs to completion. Given our shared belief in the long-term value of Boston’s commercial real estate market, we look forward to finding other opportunities to expand the relationship,” Cronin said. 

In New York, Cottonwood Group recently collaborated with Madison Realty Capital, originating a $50 million mezzanine loan for the Five Points Development at 262 Fifth Avenue, a planned supertall residential building in Manhattan with its development led by Russian Israeli billionaire Boris Kuzinez. Real Estate Capital USA‘s lending database tracked the loan origination here.

Shing said transactions such as the Seaport deal and its recent New York loan highlight Cottonwood’s ability to navigate capital stacks and contribute to complex projects within its target markets.