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Synergy pays $15M for InterContinental Garage<\/h2>May 09, 2012 - Boston Business Journal<\/span>
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Synergy pays $15M for InterContinental Garage<\/p>\n

Thomas Grillo –\u00a0<\/span>Real Estate Editor, Boston Business Journal<\/span><\/p>\n

Synergy Investment & Development, a Boston-based real estate investment and development firm, has purchased the troubled InterContinental Garage on Boston\u2019s waterfront for $15 million.<\/span><\/p>\n

One year ago, the 376-space garage faced a foreclosure sale after months of financial troubles with its $17 million mortgage. The property\u2019s mortgage has been in special servicing for two years amid slumping revenue and nearly $1.1 million in draws on cash reserves to cover its debt service, which hovers around $150,000 per month, according to servicer reports.<\/p>\n

Late last year, the court-appointed receiver overseeing the sale of the garage on Atlantic Avenue initially accepted Synergy\u2019s $17.2 million bid to acquire the 125,553-square-foot property, but by the time of the closing the garage\u2019s value had slipped, according to sources. The garage is assessed at $11 million by the city of Boston.<\/p>\n

Court filings indicate the bidding gained steam throughout the property\u2019s three-month marketing process by HFF in 2011, as more than 4,500 potential investors were contacted as part of its sale effort. Roughly 1,000 responses were recorded, with 124 of those potential bidders taking the formal step of requesting access to the property\u2019s \u201cvirtual document center,\u201d according to filings. At least four formal acquisition offers had been submitted from a low of $13.7 million to a high of $15.6 million<\/p>\n

HFF handled the sale and secured a $9.75 million mortgage from Webster Bank.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div><\/div>"