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Photo courtesy of MPZ Development
Mathieu Zahler
Principal, MPZ Development
Age: 43
Industry experience: 20 years
After stints in architecture and construction and roles with developers including Trinity Financial, where he oversaw the Treadmark development in Dorchester, Matt Zahler struck out on his own. His firm, Milton-based MPZ Development, specializes in mixed-income and affordable housing projects. MPZ Development partnered with Capstone Communities on its latest project, conversion of the former McElwain School in Bridgewater into a 57-unit mixed-income apartment building that opened this fall.
Q: What prompted your transition to the development side of the industry?
A: At Copley Wolff Design Group, we were working on some proposals for The Drew Co. in the Seaport at the time and I said, “I think development is pretty interesting. How do you figure that out?” I was working at Copley Design Group as a marketing director, and I realized I needed to get more qualifications, and went to Carnegie Mellon’s Heinz School, focusing on real estate, and came back to the Boston area. I’ve always had an entrepreneurial spirit and made a decision in 2017 to go off on my own.
Q: What’s the business model of MPZ Development?
A: Mixed-income housing was the goal, and it’s become kind of a boutique affordable housing outfit, doing projects as small as five units. In the South End, we’re converting [a vacant brownstone at] 34 East Springfield St. into housing for formerly homeless veterans. We’re hoping to open that at the end of the year, and the Bridgewater project was 57 units. We had a lottery and we had 450 applicants [for the income-restricted units]. The growth strategy is to continue in this market sector, continuing to do really high-quality projects while using historic tax credits coupled with low-income tax credits and other public funding sources.
Q: What public programs and funding sources does MPZ rely on most heavily to complete its financing packages?
A: The majority of our resources come through the Executive Office of Housing and Liveable Communities through competitive funding rounds. That’s how we primarily get the tax credits and other soft financing resources. It’s getting challenging because of the financial markets, and raising debt to finance construction loans has been getting harder.
Q: What criteria do you use to identify potential acquisition sites?
A: Most of my deals are through public-private partnerships. I find buildings that are no longer contributing the way they were intended, and repurpose them into public assets. The McElwain School had been closed for two decades. We purchased the adjacent 242 Main St., which was an 1880s historic home, and rehabbed that as well and built a new building in the back. That’s the marriage of all the resources. The town of Bridgewater issued a request for proposals, and we were the only respondent. They wanted the project, and contributed $1.3 million in Community Preservation Act funds, so that was great. We’re doing another one in Templeton, 54 rentals in a 20,000-square-foot historic school building, and we just submitted for the low-income tax credits. We already secured historic tax credits and a couple of allocations from Secretary [of State William] Galvin’s office.
Q: How many partnerships have you completed with Capstone Communities?
A: Bridgewater was our first. [Capstone Communities CEO] Jason Korb and I have known each other for 15 years, so we’re good friends and partners. We’re currently in predevelopment for the Brightwood School in Springfield, a 70,000-square-foot elementary school. That will be senior low-income tax credit project.
Q: Do you see more opportunities in suburban or urban communities?
A: It’s all project-specific, to be honest, getting to know the community and figuring out what works for them and if it’s a good fit. I have to say we have had great local partners and community experiences in all the projects we’ve done to date. Transit-oriented development also is a crucial piece of the puzzle here. I’m all for the MBTA Communities law and the density increases in communities that have opportunities to contribute to housing production. We’re prospecting on a bunch of other fronts, hoping to collaborate with Jason, but nothing is set in stone. It’s just constantly talking to folks about opportunities, and trying to find the right fit. I always enjoy working in communities that want the housing.
Zahler’s Five Favorite Old-School Hip Hop Tracks:
- “They Reminisce Over Your (T.R.O.Y)” by Pete Rock & C.L. Smooth
- “Mass Appeal” by Gang Starr
- “Microphone Fiend” by Eric B. & Rakim
- “Brakes” by De La Soul
- “Braggin Writes” by J-Live
