X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(Read more on the debt and equity markets.)

BOSTON-The developers who remade a shuttered landmark into a mix of residential condominiums and retail space have received permanent financing of $4.4 million for the building in the city’s South End. The five-year fixed-rate note was financed by Salem Five Savings Bank and includes a five-year extension option.

“Salem Five performed exceptionally well on this assignment,” says Meredith & Grew president Kevin Phelan, whose firm’s Capital Markets Group arranged the loan on behalf of Stonegate Group LLC. The bank closed the loan on the original terms despite the dramatic fall in US Treasury rates that occurred over the summer, relays Phelan, adding that, “given volatility in the marketplace, we were impressed by the bank’s willingness to honor their proposal.”

Overhaul of the building helped restore a property that some had feared would require demolition after being closed and neglected for years. The asset at 1361-1375 Washington St. has a prominent location in one of the city’s most populous neighborhoods, an area being transformed after decades of disinvestment. Washington Street is a major artery that has also been upgraded by the city in recent years, including the addition of a new transit line that feeds into Downtown Boston, a line running past the Penny Savings Bank property.

Besides preserving the existing two-story structure, Stonegate principals Sean McGrath and Dean Calivas grafted a three-story addition to the top of the building, providing for 23 residential condominiums. There is also 9,000-sf of ground-floor retail and underground parking for 29 vehicles. “This was a great outcome,” says M&G VP Seth Rosen, who arranged the loan with Phelan. The developers, says Rosen, “did an exceptional job of repositioning this historic asset and we were pleased to obtain a permanent loan that facilitated their business plan.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.