Housing Unlocked at Keystone Site

MassDevelopment Sells 193-197 Union St. in New Bedford, Contributes to Public-Private Financing Package for New Mixed-Use Development Featuring 45 Apartments & Ground-Floor Retail

March 20, 2026

Kelsey Schiller, 857-325-3477
kschiller@massdevelopment.com

Rendering of a new mixed-use building to be constructed at 193-197 Union St. in New Bedford, courtesy of Union Studio Architecture & Community Design

NEW BEDFORD, Mass. – Today, MassDevelopment announced the sale of 193-197 Union Street in New Bedford, the site of the former Keystone building, and a $3,212,750 bridge loan to Union Street Member LLC, a real estate development entity affiliated with One Circle Co. The developer will build a 42,000-square-foot mixed-use building featuring 45 new units of market-rate housing and ground-floor commercial space. Construction is expected to begin in March 2026 and be completed by summer 2027.

“We are so glad to see One Circle Co. turn the page on the former Keystone site, transforming a long-vacant parcel into new housing and commercial space for downtown New Bedford,” said Economic Development Secretary Eric Paley, who serves as Chair of MassDevelopment’s Board of Directors. “Projects like this show what is possible when public and private partners work together to bring new life to important sites in our communities.”

“We appreciate MassDevelopment’s partnership in helping advance this important downtown housing development,” said New Bedford Mayor Jon Mitchell. “With groundbreaking imminent, we applaud Lauren Jezienicki and One Circle for sharing our commitment to high quality housing opportunities that strengthen a vibrant, walkable downtown for residents and businesses alike.”

“The redevelopment of 193-197 Union St. in New Bedford was a real team effort, bringing together our staff at MassDevelopment, state and local partners, and a local developer in One Circle Co. to pursue a brighter future for the formerly vacant parcel,” said MassDevelopment President and CEO Navjeet Bal. “We are proud to close on the sale of the site and a loan to support building construction and look forward to seeing this new development bring housing, retail, and jobs to an important corner of the city.”

Further public-private support for the project includes a $3.55 million Housing Development Incentive Program tax credit award from the Executive Office of Housing and Livable Communities; $9.5 million in construction financing from Coastal1 Credit Union; $6.1 million from the Massachusetts Housing Investment Corporation’s Healthy Neighborhood Equity Fund; $1 million in ARPA funding from the City of New Bedford; $250,000 in Community Preservation Act funds; a 20-year property tax increment exemption from the city; and the partnership of the New Bedford legislative delegation, including Senator Mark Montigny, Representative Christopher Hendricks, Representative Antonio F. D. Cabral, Representative Christopher Markey, Representative Mark D. Sylvia, and Representative Steven J. Ouellette.

Located two miles from I-195 and U.S. Rt. 140 in the heart of New Bedford’s historic center, the property is a short distance from the city’s downtown attractions, including the recently completed MBTA Commuter Rail station, the working waterfront, museums, restaurants, and entertainment destinations. Built in 1861, the Keystone building served as a furniture store from 1914 to 1981. It was demolished in 2004 after years of vacancy and disrepair. As the Commonwealth’s land bank, MassDevelopment purchased the property in 2014 to prepare the site for private investment and redevelopment. The agency issued a Request for Proposals to identify an economic revitalization use aligned with the needs of the downtown.

One Circle Co. is a multifamily development company, focusing on opportunities in Greater Boston and delivering communities that are sustainable, healthy, and technology driven. The company is a woman-owned business (WBE), Fitwel Ambassador, and Public Benefit Corporation.

“Over the course of my 20-year career in multifamily development, no project has held more meaning for me than this one,” said Lauren Jezienicki, Founder, One Circle Co. “As a native of New Bedford, it has been both a privilege and a personal honor to collaborate with this exceptional stakeholder team in restoring the Keystone to new life. The City of New Bedford is a remarkable community, and I am grateful to play even a small role in the important and inspiring work taking place here.”

MassDevelopment’s Transformative Development Initiative (TDI), a program designed to accelerate economic growth within focused districts in Gateway Cities, previously served the area in which 193-197 Union Street is located. MassDevelopment’s purchase of the property and planning for temporary activation and permanent redevelopment happened in conjunction with TDI Equity, MassDevelopment’s program for investing in catalytic real estate in TDI Districts. MassDevelopment made additional investment in the district through its TDI Creative Cities pilot program from 2020 to 2023.

“Coastal1 Credit Union is pleased to partner with One Circle, the City of New Bedford, Mass Housing Investment Corporation (Healthy Neighborhood Equity Fund), MassDevelopment, and the Massachusetts Executive Office of Housing and Livable Communities in the redevelopment of the former Keystone site,” said Carlos DaCunha, Senior Vice President Commercial Banking Manager, Coastal1 Credit Union. “As the senior debt provider, we’re excited to deliver $9.5 million in construction financing to help One Circle address the housing shortage through this mixed use residential/commercial project right in the heart of downtown New Bedford. This project represents the type of strategic investment Coastal1 continues to make in support of important housing and economic development plans throughout the communities we serve. We look forward to working with One Circle and all other stakeholders to deliver this important housing project for the City of New Bedford.”

“This investment is about strengthening community and expanding opportunity,” said Moddie Turay, President and CEO of Massachusetts Housing Investment Corporation. “We are proud to help deliver new mixed-income homes and neighborhood-focused commercial space in downtown New Bedford while supporting a hometown developer. This is what meaningful partnership looks like, and it is how lasting growth takes root.”

In 2021, New Bedford Creative partnered with Tanisha Ferrer and a collective of other artists to create a “Black Lives Matter” mural, which was installed along the fencing of the vacant Keystone lot while the project secured financing. Prior to construction made possible by this transaction, the creative team relocated this important mural to the nearby Star Store in downtown New Bedford.

MassDevelopment, the state’s development finance agency and land bank, delivers financing solutions, real estate expertise, and other assistance to strengthen and grow the Massachusetts economy. We partner with businesses, nonprofits, developers, banks, and municipalities, providing resources to help create jobs, build housing, and foster vibrant communities across the state. During FY2025, MassDevelopment financed or managed 409 projects generating investment of more than $4.65 billion in the Massachusetts economy. These projects are estimated to create or support 25,246 jobs and build or preserve 2,867 housing units.