Franklin’s Dean College will use proceeds from a MassDevelopment bond to purchase a new residence hall.

The school will acquire Franklin Center Commons II at 17 East Central St. with the $4.5 million tax-exempt bond.

The first floor of the 36,000-square-foot, three-story building houses retail businesses and the second and third floors consist of 21 apartments. The college had leased the second and third floor of the building, which is less than a quarter of a mile from the campus. It will house 75 students and one residence director.

The college expects the project will create 15 jobs. Citizens Bank purchased the bond.

“The purchase of Franklin Center Commons II will help to ensure that Dean College has an adequate supply of safe, convenient student housing for years to come,” MassDevelopment President and CEO Marty Jones said in a statement. “MassDevelopment is pleased to support Dean College as it increases housing options for its growing student body.”

“This facility is a key to our success as we continue to grow the number of junior and senior students,” Daniel Modelane, vice president of financial services and treasurer of Dean College, said in a statement. “In addition, we believe the mixed use of retail and housing will continue to add to the revitalization of downtown Franklin.”