Image courtesy of Embarc Studio
After unsuccessfully attempting to secure financing for 242 condominiums, City Realty is offering to increase affordability as it seeks to convert its entire 351,000-square-foot Allston Square project to rentals.
Approved in 2021, the Allston Square project includes six buildings near the intersection of Cambridge Street and Harvard Avenue.
Allston-based City Realty originally planned a mix of 244 condos and 100 apartments, but has been unable to obtain financing for the for-sale component of the project. The developer now is seeking to convert the three condo buildings to apartments, subject to Boston Planning & Development Agency approval.
“Despite sending the project to literally hundreds of potential lenders over the past two years, however, the proponent has been unable to identify a viable source for financing,” attorney Donald Wiest of Dain Torpy wrote in a letter accompanying the notice of project change.
The changes would apply to three properties including 415 Cambridge St., the Franklin-Braintree building at 20 Braintree St. and the Jack Young Building at 334 Cambridge St.
In another significant change, developers are offering to increase the overall portion of income-restricted units from 14 to 17 percent. The income qualification levels also would decrease, with 34 units reserved for households earning 50 to 70 percent of area median income (AMI). Previously, all 34 income-restricted units were set at 80 to 100 percent of AMI.
On Thursday, the BPDA approved another large development’s shift to all-rentals following similar financing difficulties.
Ad Meloria CEO Jan Steenbrugge said the lack of an established condo market in Readville has discouraged lenders from financing the for-sale units, which would have comprised 151 of the 273 units at The Residences at Readville Station.
Under a proposal approved by the BPDA last week, all housing developments with seven or more units would be required to include 20 percent income-restricted units. The changes to the inclusionary development policy also require approval by the City Council and the Boston Zoning Commission.
