$19.6M for Worcester Affordable Housing
Tax-Exempt Bond from MassDevelopment, Eastern Bank, and Rockland Trust Helps Boston Capital Development, LLC Transform Former Table Talk Pies Site into Affordable Housing in Downtown Worcester
January 4, 2023
Matthew Mogavero, 857-248-0868
mmogavero@massdevelopment.com
Rich Mazzocchi, Boston Capital Development, LLC, 617-842-0600
rmazzocchi@bostoncapital.com
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| Rendering of 120 Washington St. in Worcester, courtesy of Boston Capital Development, LLC |
WORCESTER, Mass. – MassDevelopment has issued a $19,640,000 tax-exempt bond on behalf of 120 Washington 4 LLC, an affiliate of Boston Capital Development, LLC, which will use proceeds to construct 59 units of mixed-income affordable rental housing at the site of the former headquarters of Table Talk Pies at 120 Washington St. in Worcester. The project is part of the larger mixed-use redevelopment of the four-acre site that will include a total of 400-plus residential housing units and 20,000 square feet of commercial space. Construction is underway and is expected to be complete in February 2024. Eastern Bank and Rockland Trust purchased the bond, which helped Boston Capital Development, LLC achieve a lower cost of capital.
At 120 Washington St., Boston Capital Development, LLC will construct a unit mix of six studios, 28 one-bedroom, 44 two-bedroom and five three-bedroom apartments. In addition to the 59 units supported by MassDevelopment bond financing, 24 additional units will be financed with an allocation of Low Income Housing Tax Credits, additional subsidies from the Department of Housing and Community Development, and conventional bank financing. Additionally, in October 2022, the Baker-Polito Administration awarded a $400,000 grant from MassDevelopment’s Underutilized Properties Program to help Boston Capital Development, LLC advance a portion of the larger project at 120 Washington St.
“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,” said Housing and Economic Development Secretary Mike Kennealy, who serves as chair of MassDevelopment’s Board of Directors. “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.”
“The prime downtown site of Table Talk Pies’ former headquarters will now offer much-needed affordable housing options for individuals and families in Worcester,” said MassDevelopment President and CEO Dan Rivera. “MassDevelopment is proud to partner with Eastern Bank and Rockland Trust to help the team at Boston Capital Development, LLC redevelop this longtime industrial property into a mixed-use facility that will complement the significant public and private investments being made in the surrounding downtown neighborhood.”
“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,” said Eastern Bank Vice President and Relationship Manager of Community Development Angela Meehan. “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.”
“Projects like this are made possible by key collaborators such as MassDevelopment,” said Worcester City Manager Eric Batista. “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.”
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. 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 (TDI), a program designed to accelerate economic growth within focused districts in Gateway Cities.
Boston Capital Development, LLC is a real estate development and planning firm with experience in various aspects of the affordable and market-rate multifamily housing industry, including development, investment, and lending. Established in 1974, the firm has placed $11 billion in equity into over 230,000 apartments across 3,640 properties nationwide. Boston Capital currently owns interest in approximately 215 properties totaling over 10,000 units.
“We’re thrilled to have MassDevelopment as a financing partner on the first phase of this redevelopment project,” said Boston Capital Development, LLC Managing Director Rich Mazzocchi. “Creating new affordable housing is of critical importance to households in Worcester and we appreciate the support from all stakeholders.”
MassDevelopment, the state’s development finance agency and land bank, works with businesses, nonprofits, banks, and communities to stimulate economic growth across the Commonwealth. During FY2022, MassDevelopment financed or managed 356 projects generating investment of more than $1.69 billion in the Massachusetts economy. These projects are estimated to create or support 11,080 jobs and build or preserve 1,778 housing units.
