Several residential developments are planned for East Boston, including Porter 156, shown in the rendering above. Prospective homebuyers were invited to tour a model of the 217-unit loft development on Sunday.

With millions of dollars in development and public funding pouring into East Boston, local leaders are having visions that this part of the city will gradually become another success story like the South End.

At least five major residential developments are in the works, along with several smaller-scale projects – all of which are part of an ongoing transformation of East Boston, according to area real estate professionals. The city and state are spending millions to upgrade two public parks totaling over 40 acres and convert an old engine house into a YMCA facility, while the neighborhood’s public housing development, Maverick Gardens, is currently being converted into a mix of low-income and market-rate apartments.

“Clearly the [East Boston] market is beginning to take off,” said Ted Jankowski, chief executive officer of the Greater Boston Real Estate Board. “Areas of East Boston are beginning to blossom in a lot of ways. Anything with a view is gaining interest and speculation.”

On Sunday, 1,500 prospective homebuyers were invited to tour the recently finished model home of Porter 156, a $16 million project that involves the renovation of an old industrial warehouse into 217 lofts. Marketed as “true loft living,” Porter 156 is being developed by ELV Assoc. and Metric Development.

Scott Jenkins, president of ELV Assoc., said the industrial building, once used by General Electric, will be completely rehabilitated and two floors will be added. The units, which will range in size from 900 to 1,000 square feet, will carry price tags of between $200,000 and $500,000. All of the units, except for those on the fourth floor, will feature mezzanines, according to Jenkins. An underground parking garage as well as surface parking will be included.

At the rear of the facility is public park space – both the East Boston Memorial Stadium and Bremen Street parks, which are currently being upgraded. Construction and demolition work began in April, and Jenkins said the homes should be ready by next fall. The homes will appeal to a cross section of buyers, from first-time homebuyers to young urban professionals to empty nesters, said Jenkins.

East Boston provides homebuyers with one of the last few remaining opportunities to enjoy city living at an affordable price, said Jenkins. “We think it [East Boston] is the last great emerging marketplace this close to Boston,” he said.

‘All at Once’

Right next to Porter 156 is a smaller residential development called The Paris Flats. As part of that project, a former sausage factory is being converted into 13 condominium lofts.

Construction and marketing of the lofts began about two weeks ago and already seven of them have been sold, according to Doug Melcher of Paragon Properties, the Back Bay real estate firm marketing the units. Of the remaining unsold units, the least expensive costs $299,900 while the most expensive is priced at $469,900. The units should be ready for occupancy in about a year.

Buyers who are priced out of more costly Boston neighborhoods like the Back Bay and the South End will be attracted to East Boston, said Melcher, who also noted that he has seen a lot of interest from investors.

In fact, Melcher’s firm has sold several properties in East Boston to investors in recent weeks, including one of the loft units at The Paris Flats.

“There’s definitely a market for people to get really nice housing over there,” said Melcher, who is considering opening an office in East Boston.

Some big developers are betting heavily on the East Boston market. Perhaps the centerpiece of the neighborhood’s transformation is the plan to develop East Boston’s waterfront. Three large residential developments that are planned will infuse the area with roughly 1,100 new housing units.

Among the development is Portside at Pier One, a 585-unit luxury development featuring a mix of ownership and rental units. The $110 million project, which is being developed by New Jersey-based Roseland Development Corp., is currently under review. Also planned for the waterfront is Clippership Wharf, a $190 million project that will feature 400 condos. Clippership Wharf has been approved by the Boston Redevelopment Authority and is being developed by Winn Development. Construction is expected to begin later this year or in early 2005, according to information provided by the BRA last week.

Meanwhile, Philip DeNormandie of the DeNormandie Cos. wants to build 190 homes, with a bed-and-breakfast facility, cafe and marina uses at the Hodge Boiler Works. The $50 million project, currently under review, is planned for a 2.5-acre site adjacent to LoPresti Park.

“The entire waterfront area is being revitalized and not bit by bit – all at once,” said Melcher.

All of this investment has helped fuel buyer interest in the area, according to Fabiola Cordano, who manages Prudential Cordano Realty in East Boston, a company that her father Pedro Cordano started seven years ago. Cordano said she has seen a lot of interest from buyers and investors who cannot afford downtown Boston’s prices.

“They see the future in East Boston,” she said.

The median selling price for a condo in East Boston soared 92 percent in the last three years, from $90,000 in 2000 to $172,750 last year, according to statistics compiled by The Warren Group, parent company of Banker & Tradesman. The median selling price for condos sold during the first eight months of this year reached $196,450. Meanwhile, the median selling price for a single-family home was $237,450 last year, a 72 percent increase from 2000 when the median price was $137,698.

Multifamily home prices have also escalated. Three years ago, a homebuyer could purchase a three-family home for between $280,000 and $290,000. Today, most three-family homes are in the $500,000 price range, said Cordano.

Despite the improvements and strong price appreciation, Cordano, a Roslindale resident who lived in East Boston for 15 years, said the neighborhood is still struggling with crime. She remembers a time when there were plenty of gangs in East Boston. “It got cleaned up pretty well,” she said. “But it’s starting to come back.”

Those in real estate, however, are looking beyond that and emphasizing all the perks of living in East Boston.

Besides being less expensive than other Boston neighborhoods, East Boston offers an easier and faster commute into the city’s Financial District, says Melcher. East Boston has the infrastructure to support growth, Melcher said, and is better served by mass transit than other parts of the city.

East Boston residents can jump on the MBTA Blue Line from two stops, the Maverick or Airport stations, and arrive at State Street within five to 10 minutes.

And East Boston has something more – the Harbor and breathtaking views of the Boston’s skyline. “The view from many of the units over there … is absolutely spectacular,” said Melcher.

“I just see East Boston as a wonderful neighborhood that really has been underserved and undervalued,” he said.