Eastern Bank, headquartered in Boston, has announced that it will sell its majority ownership stake in Fantini & Gorga to the commercial real estate advisory firm's executive leadership team. The transaction also includes the bank's Eastern Mortgage Capital business line, which uses Federal Housing Administration mortgage insurance to provide loans for apartments, senior housing and skilled nursing facilities nationwide.
Eastern purchased a majority stake in Fantini & Gorga in 2001. The leadership – which consists of George J. Fantini, Jr. as chairman and principal, John R. Gorga as president and principal and Tim O'Donnell as principal – owned a minority stake in the business during its ownership by Eastern. Fantini, Gorga and O'Donnell also launched, and now manage, the Eastern Mortgage Capital business line.
‘This agreement reflects the strategic goals of both organizations, and it will help each achieve those goals,’ says Richard E. Holbrook, Eastern's chairman and CEO. ‘In recent years, the bank has become increasingly focused on developing relationships with people and businesses in eastern Massachusetts, while Fantini & Gorga's serves a much broader geography with specific real estate financing services.’
Terms of the deal were not disclosed. The transaction is expected to close by April 30.
SOURCE: Eastern Bank
