Image courtesy of Boston Capital Development
A multifamily development in Worcester’s blossoming Canal District has secured a big, additional segment of its capital stack thanks to a tax-exempt bond from MassDevelopment.
Boston Capital Development is redeveloping a 4-acre site at 120 Washington St., formerly the headquarters of Table Talk Pies, into over 400 housing units and 20,000 square feet of commercial space. Construction is underway and is expected to be complete in February 2024.
The developer is using the $19.64 million bond to finance 59 of the project’s mixed-income affordable units, MassDevelopment said in its announcement of the bond. A mix of Low Income Housing Tax Credits, additional subsidies from the Department of Housing and Community Development, and conventional bank financing will be used to provide an additional 24 affordable units on the site at 120 Washington St., formerly the headquarters of Table Talk Pies.
The financing comes in addition to a a $400,000 grant from MassDevelopment’s Underutilized Properties Program
“Revitalizing downtown properties into mixed-income housing and retail spaces is a key way we can address the state’s housing crisis, create more vibrant neighborhoods, and stimulate local economies,” outgoing Housing and Economic Development Secretary Mike Kennealy, who also chairs MassDevelopment’s board of directors, said in a statement. “The Baker-Polito Administration is pleased that this project in the Gateway City of Worcester is moving forward with the help of state and private financing.”
Eastern Bank and Rockland Trust purchased the bond, which helped Boston Capital Development achieve a lower cost of capital, MassDevelopment said.
“The project at 120 Washington Street in Worcester will anchor the larger development site with 83 units of housing, providing a stable source of affordable homes in a neighborhood with growing access and opportunity,” Eastern Bank Vice President and Relationship Manager of Community Development Angela Meehan said in a statement. “It is a pleasure to work with MassDevelopment and support Boston Capital Development, LLC in the redevelopment of what will be a truly mixed-use and mixed income neighborhood.”
The site served as the headquarters of Table Talk Pies from 1924 until January 2022, when the company relocated its production and distribution facility to an industrial area within Worcester to make way for the Canal District’s redevelopment, centered around the Worcester Red Sox’s Polar Park stadium. Table Talk Pies’ new bakery and corporate office is now located in the former Worcester Main South TDI District, which is an area previously served by MassDevelopment’s Transformative Development Initiative, a program designed to accelerate economic growth within focused districts in Gateway Cities.
“Projects like this are made possible by key collaborators such as MassDevelopment,” Worcester City Manager Eric Batista said in a statement. “This particular site located next to Polar Park is crucial to unlocking the full potential of the Canal District by bringing much needed housing including affordable units to the neighborhood. When public and private interests work together we can take big steps to move the City forward, and our residents are the beneficiaries.”
