Hana Invests in Cottonwood’s Boston Mega-Project

The South Korean alternative asset manager closed its debut investment in EchelonSeaport, a $950 million luxury, mixed-use project under construction in the Seaport District.
EchelonSeaport. Rendering courtesy of Cottonwood Group

South Korea’s Hana Alternative Asset Management has closed an investment in Cottonwood Group’s EchelonSeaport, a massive, $950 million-plus luxury residential project underway in Boston’s Seaport District.

Spanning three towers and 717 condominium and rental apartment units, the greenfield development broke ground in 2017 and the first phase is slated for delivery in the fourth quarter of this year. The 1.3-million-square-foot property comprises two condo towers and one multifamily tower, with 60,000 square feet of residential amenities atop a retail podium of more 125,000 square feet.

Located at 133-135 Seaport Blvd., the community is being developed by Cottonwood Group. Terms of Hana’s debut investment in the project were not disclosed. A statement by the two firms indicates that the deal kicks off a strategic partnership under which the Korean real estate-focused asset manager will tap Cottonwood’s investment platform to grow its property portfolio in the U.S.

Hana arranged a $51.5 million loan investment in the project, as part of a $300 million mezzanine tranche originated by Cottonwood for the construction. The deal is believed to be the first such investment sourced by a Korean asset manager.

Huge community underway

Designed by Kohn Pedersen Fox Associates and CBT Architects, EchelonSeaport is the largest residential project underway in the city. The three towers anchored by an interior piazza will sprawl across an entire city block in the Seaport District, a burgeoning neighborhood along the South Boston waterfront. The first of the condo towers, at 133 Seaport Blvd., topped off last September.

EchelonSeaport will offer 447 condo units branded by Taiwan-based Regent Hotel Group, along with 270 rental apartments including affordable units. The property’s lengthy list of high-end amenities range from outdoor pools to a golf simulator and pet spa. Plans also call for an innovation center that resembles a coworking space.

The property will sit next door to The St. Regis Residences, Boston, a luxury 22-story, 144-condo project at 150 Seaport Blvd. that received $294 million in construction financing last October.

Cross-border partnership kicks off

“An investment in a condominium and multifamily asset, such as EchelonSeaport, during the construction phase of the development’s lifecycle is an important step toward achieving our portfolio diversification and expansion goals,” commented Hee Seok Kim, chairman & CEO of Hana Alternative Asset Management, in a prepared statement.

“Further, we believe that the strategic partnership with Cottonwood is an important first step on the road to strengthening our market position in the competitive United States real estate market,” Kim added.

Under their new cross-border partnership, Hana plans to tap into debt and equity opportunities in the U.S., with Cottonwood serving as the Korean player’s strategic real estate investment and asset manager. The duo will target real estate investment opportunities in primary markets such as New York, Boston, Los Angeles, San Francisco and Seattle.

Hana Alternative Asset Management, part of Hana Financial Group, has over $6.2 billion in assets under management. Cottonwood Group has a more than $2 billion portfolio of properties across major cities in the U.S.