Cambridge Savings Bank (CSB) increased the commercial and industrial (C&I) revolving line of credit for First Boston Construction Holdings (FBCH) to $60 million. Based in Quincy, MA, FBCH is an affiliate of The Grossman Companies and extends private loans to builders, developers and real estate investors in New England with a focus in greater Boston.
FBCH provides short-term, bridge capital for acquisitions, ground-up construction and renovations secured by non-owner-occupied residential and/or commercial properties. As a longstanding partner of CSB, the company relies on the line of credit for general working capital purposes. FBCH closed a $60 million equity raise in conjunction with the most recent CSB financing, with the capital enabling FBCH to continue to grow its loan portfolio.
“For years, Cambridge Savings Bank has been a trusted partner as we have elevated our brand and grown our footprint in the Boston market,” David Grossman, president at First Boston Construction Holdings, said. “The increase of our line of credit with CSB coincides with a follow-on equity raise which brings our committed equity capital base to approximately $180 million. As a result, we will continue to operate our business with extremely low leverage and have significant ‘dry powder’ that will enable us to prudently grow our loan book at a time when conventional lenders are feeling capital constraints. We pride ourselves on providing highly customized and flexible solutions to our borrowers and are happy to have a banking partner who does the same. We’re grateful for the most recent commitment from CSB and have had the pleasure of a longstanding business relationship with the commercial real estate and the C&I divisions of the bank.”
“With more than 40 years of strong financial performance and a proven track record of success, First Boston Construction Holdings is an ideal customer for the bank to partner with” Brian Annese, first vice president and senior corporate banking loan officer at Cambridge Savings Bank, said. “The biggest issue in the private lending industry today is liquidity. FBCH is extremely well capitalized, which gives them a strong competitive advantage. It is exciting to be the financial partner of choice for the company as they work toward a future of continued growth and positive impact on the real estate market in Massachusetts and New England.”
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