Developers receive $3 million loan for Lowell affordable housing project
September 18, 2019 : Lowell Sun, by Nicole DeFeudis
MassDevelopment and Washington Savings Bank provide loan
LOWELL — MassDevelopment and Washington Savings Bank joined forces to provide a $3 million loan for the construction of affordable, energy-efficient housing units on West Third Street.
Residence at Mill Square LLC, an affiliate of Degmar Development Corporation, used the $3,062,700 loan to purchase land at 27 West Third Street for the construction of a 21-unit building.
Peter Marlowe, co-owner of the Lowell-based development company, expects the apartments to be move-in ready by Jan. 1. Builders broke ground on the project in November.
“It’s something I just enjoy doing,” Marlowe said of constructing apartment buildings. Marlowe grew up in Lowell and now resides in Tyngsboro. “I’m on the site. My hands are dirty,” he said, adding that he is directly involved with the building process, from design to construction.
When completed, the West Third Street complex will include eight two-bedroom units, eight three-bedroom units, four one-bedroom units and one studio apartment.
“The building is totally energy-efficient,” he said, adding that the walls are much more resistant to cold temperatures than most. The building is designed to retain heat, cutting energy use and cost, he explained. The building features an electric heating system.
“Our communities thrive when residents of all backgrounds have access to safe, quality, and affordable housing,” MassDevelopment President and CEO Lauren Liss said in a news release. “We are excited to partner with Washington Savings Bank to support the creation of 21 new homes in Lowell.”
MassDevelopment, the state’s economic development and finance authority, provided a mortgage insurance guarantee on the loan.
This isn’t the first time Washington Savings Bank has partnered with MassDevelopment. In 2013, the duo provided a roughly $1.7 million loan Underwood Property, Management, and Development LLC for the construction of 20 market-rate housing units and one affordable unit on Sixth Street, according to a MassDevelopment news release.
In fiscal year 2018, MassDevelopment financed or managed 384 projects, expected to produce 10,994 jobs and build or renovate 830 housing units statewide, the release states.