The two interior design decisions that doomed swanky new Boston St Regis condos and forced developer to hand keys to bank

A series of odd design choices has doomed a luxury condominium building on the waterfront in Boston, with the developer now forced to throw in the towel.

Restaurateur Jon Cronin had sought to develop a swanky 22-story residential building overlooking the water in the city’s up and coming Seaport neighborhood, on the site of his bars Whisky Priest and Atlantic Beer Garden.

But Cronin, an Irish man who got his start in construction, surrounded himself with trusted associates who also lacked luxury market knowledge, according to the Boston Globe.

The result was a stunning, twisted glass exterior that made the St. Regis Residences stand out.

However, the interiors were not furnished with a secondary wall system to mask the unusual angles outside – leaving the multi-million dollar units with odd spaces that were challenging to furnish and a lobby that left much to be desired.

Units that did not face the water were also overpriced, with Cronin apparently refusing to offer a discount on the non-waterfront homes as many other developers do.

Now, nearly three years after the first tenants moved into the building, 40 percent of the 114 units remain unsold and Cronin is turning control of the building over to his lender – Los Angeles-based Cottonwood Group, which holds a $240 million mortgage on the property.

He is asking for ‘no recovery of investor equity’ in the deal, according to a Final Project Update in July obtained by real estate broker John F. Gately. 

It notes that the project has had setbacks almost from the beginning and was never able to financially recover.

Construction was initially delayed on the St. Regis Residences by a legal fight with Conservation Law Foundation, which sued the Cronin Group over public access to Boston’s waterfront.

Cronin would up settling with the environmental group in early 2018, with commitments for additional public space and mitigation payments, the Globe reports.

But that was not the end of the developer’s woes, as he soon faced COVID-related disruptions, challenges building the massive structure on a parcel of land surrounded by water, as well as an existing apartment tower.

The original broker on the project, Gibson Sotheby’s International Realty, also filed and eventually settled a lawsuit against the Cronin Group in a dispute over alleged unpaid commissions, Banker & Tradesman reports. 

It ultimately took four years for Cronin to complete construction on his project.

By the time the building finally opened to residents in October 2022, Cronin missed the pandemic-fueled condo sales boom.

‘The pandemic triggered a flight from urban luxury housing, weakening presales and significantly slowing absorption in our target buyer segment,’ the developers wrote in the Final Project Update.

They noted that they even placed 10 units up for bid in the fall of 2023, but ‘minimum bid pricing was set as much as 30 percent below previously announced asking prices.’

Boston’s condo sales are now on pace for its weakest year since 2003, according to data from The Collective Companies, which handles marketing for many luxury buildings in the city. 

At the St. Regis Residences, sales of units priced between $2 to $3 million fell 14.5 percent in the second quarter of this year, while sales of more expensive units fell 23 percent.

The sales picked up earlier in the year, but slowed due to uncertainty surrounding President Donald Trump’s global tariffs. 

Still, Cronin said he and his team ‘are incredibly proud of what we’ve built with the St. Regis Residences, Boston.’ 

He also said Cottonwood – which developed the EchelonSeaport, a nearly full condo and apartment complex across from the St. Regis, ‘has ben a trusted partner from the start of their investment.

‘They share our belief in the unparalleled quality, lifestyle and value this building offers and we are excited to work alongside them in this next phase,’ Cronin said.

‘With its sweeping waterfront views, uniquely exquisite residences, signature butler service and bespoke amenities, now coupled with Cottonwood’s financial resources and operational expertise, I have no doubt that the enhanced offerings will continue to make this property the best place to call home in Boston.’

Cottonwood CEO Alexander Shing also said that he is bullish about investing in the Seaport neighborhood.

‘I don’t want to put money anywhere but the Seaport,’ he told the Globe. ‘Why reinvent something that is already very good and I can make it excellent.’

Shing added that he is thrilled to be getting Cronin’s building at a discount, as the developer reportedly plans to negotiate a deed-in-lieu of foreclosure with Cottonwood that would include an additional $6 million cash infusion from Cronin.

‘You can’t build for that amount now,’ the CEO noted.

But despite the setbacks, it does not seem that Cronin is done developing either.

In 2020, he had bought the parent company of Boston Ship Repair, which operates a 1,150-foot long dry dock in the city’s marine industrial park.

Cronin plans to build three labs overlooking the dry dock, though the efforts are now on hold amid a biotech sector slump.