Image courtesy of The Architectural Team

A 273-unit Readville multifamily development site that’s been unable to obtain financing since 2021 will head to auction next month, in the latest example of financial hurdles facing housing developers in Boston.

The 2.7-acre property at 1717 Hyde Park Ave. is approved for a 6-story, 316,315-square-foot apartment complex just north of the MBTA commuter rail’s Readville station.

Holbrook-based auctioneer Paul E. Saperstein Co. is overseeing the mortgagee’s sale scheduled for 11 a.m. on Aug. 16.

Boston-based developer Ad Meloria received approval from the Boston Zoning Board of Appeal in June 2021 for the project, which would include 3,617 square feet of ground floor retail-restaurant space and 273 parking spaces.

Northern Bank and Trust Co. provided a $9 million mortgage for the property, which currently is occupied by an industrial building, in August 2021. Developers hired Colliers to market the property or seek joint venture partners in 2022.

On July 13, developers received BPDA approval to eliminate the 151-unit condominium segment of the development, replacing them with rentals. Ad Meloria CEO Jan Steenbrugge said a lack of recent for-sale condo inventory in Readville delayed the development team’s ability to obtain construction financing.

Rising construction and financing costs have prompted more developers to offer approved sites for sale or bring on additional partners to make projects financially feasible.

Allston-based City Realty is seeking to eliminate the 242-unit for-sale component of its Allson Square project, while increasing the percentage of affordable units and deepening their household income requirements.