Image courtesy of The Architectural Team
Apartment developer Mill Creek closed on a $97.6 million construction loan and acquired a Medford industrial property for $20.5 million where it has approval for a 380-unit rental complex.
Spanning 2.8 acres, the 4000 Mystic Valley Parkway property contains a single-story, 65,700 square-foot industrial building completed in 1958. The previous owner, Natick-based MVP Realty Co. LP, acquired it in 1988 for $565,000.
Truist Bank, which is headquartered in Charlotte, North Carolina, provided $97.6 million in construction financing, according to a mortgage filed Sept. 3 at the Middlesex Registry of Deeds.
During negotiations with Medford officials, developers redesigned the project from a single 380-unit building to two buildings containing 350 units and 2,000 square feet of ground floor commercial space. The project sets aside 88 units, or 25 percent of the total, for households earning a maximum 80 percent of area median income.
Like The Davis’ Companies’ 970 Fellsway project, groundbreaking at 4000 Mystic Valley Parkway was delayed while the state Housing Appeals Committee reviewed the Medford Zoning Board of Appeal’s contention that the city had attained safe harbor status under Chapter 40B.
In October 2023, the panel ruled that the low- and moderate-income housing does not occupy more than 1.5 percent of the city’s land area, which would have given Medford officials more power to deny Chapter 40B applications.
According to application materials, Mill Creek has developed over 4,000 apartments at 15 projects in Massachusetts. Approximately 1,400 apartments were approved under Chapter 40B and Chapter 40R, “Smart Growth” zoning law that provides payments to municipalities for approval of multifamily housing in walkable areas or near transit stops.
In August, Mill Creek submitted plans to Quincy officials for a 321-unit apartment complex at 42 Beale St. in the Wollaston neighborhood.
Mill Creek also developed the 297-unit Modera apartment complex at 5 Cabot Road in Medford, which opened in 2017. The property currently lists 1-bedroom units renting from $2,955 per month.
