Developer Jon Cronin to give up control of troubled St. Regis Residences in the Seaport –
Developer Jon Cronin has agreed to hand over the keys to the St. Regis Residences, the luxury condominium tower on the South Boston waterfront that remains more than one-third empty nearly three years after it opened.
Cottonwood Group, the Los Angeles-based real estate investment firm that holds a mortgage on the 114-unit building, will take control of the property, according to two people familiar with the deal.
The agreement is expected to be wrapped up as soon as next week, one of the people said. Cronin didn’t immediately respond to a request for comment. A spokesperson for Cottonwood declined to comment.
Cronin turned to Cottonwood for financing in October 2023, a year after the building opened, allowing him to pay off the outstanding balance of a $345 million construction loan. Cottonwood, run by Alexander Shing, developed EchelonSeaport, a luxury condo and apartment complex across Seaport Boulevard from St. Regis Residences.
“We are bullish on Boston given the success of our EchelonSeaport development,” Shing, Cottonwood’s chief executive, said at the time.
When the 22-story building opened in late 2022 — about 18 months behind schedule due to construction delays — the Boston condo market was in the doldrums.
Sales of units priced above $2 million fell 14 percent last year in the city, according to The Collaborative Companies, which handles marketing for many luxury buildings, including the St. Regis Residences and EchelonSeaport.
Cronin’s deal with Cottonwood was reported earlier in a Substack post by real estate broker John F. Gately.
Larry Edelman can be reached at larry.edelman@globe.com.