Southpoint, the condo developers behind Southpoint Tower and other condominium developments, has agreed to sell some of its condominium properties to new developers, including one developer that has ties to the former mayor of Boston.
The agreement, which is pending approval by the city, will allow Southpoint to sell about 2,600 units to a company that plans to build condos in South Boston.
The deal is expected to close in the next few weeks.
Southpoint has been struggling with high occupancy and high rents in recent years.
The city approved an apartment tax hike in 2015 and the company was forced to sell its first condo building, a $2.8 million condominium at the South Point Tower in Cambridge.
Southpoint has since been working to refinance some of those loans, which could result in a $3 million debt payment by the end of 2018, according to documents obtained by The Associated Press.
A deal could also allow SouthPoint to build new condominium projects in Cambridge and elsewhere in Massachusetts, which would boost the company’s revenue.
“The company has an excellent track record of creating and maintaining long-term economic development opportunities for Boston and surrounding areas,” Mayor Marty Walsh said in a statement.
Walsh’s office did not immediately respond to a request for comment.
Southpoint is one of the largest developers in the country.
It is owned by Boston-based Realtors Associates LLC, which also owns the property in South Point.
It was a longtime supporter of the mayor’s re-election bid and has donated $1.7 million to Walsh’s political campaigns since 2013, according the city’s finance department.
The Southpoint towers, which were built in the 1990s, were among the first high-rise buildings built in Boston to go on the market.
They were also the first of many high-rises built in Massachusetts.
The towers were one of many condominium development projects that Southpoint signed with developers, but the company also built dozens of luxury condominium buildings in other Boston neighborhoods, including the Roxbury Towne Center and the South End.
In the past decade, Southpoint also developed condominium towers in Cambridge, Boston, Somerville, Somerton and Somerville Hills.