MassDevelopment Loan Supports Redevelopment of Vacant Industrial Building in Worcester into 58 Apartments
$1.8 Million Bridge Loan Helps Bluestone Residential Renovate and Convert Historic Building in City’s Main South Neighborhood into Mix of Market-Rate Studio and One-Bedroom Units
November 10, 2026
Kiara Ford, 978-844-1380
kford@massdevelopment.com
WORCESTER, Mass. – MassDevelopment provided a $1.8 million loan to Beacon Street Lofts LLC, an affiliate of Bluestone Residential, to renovate and convert a vacant former industrial building at 98 Beacon St. in Worcester’s Main South neighborhood into 58 apartments.
The historic four-story building was built around 1900 and has been vacant for more than 10 years. Bluestone Residential, in partnership with Civico Development LLC, is redeveloping the building into a mix of market-rate studio and one-bedroom apartments. Project financing also includes a $7.5 million first mortgage loan from Clinton Savings Bank. The Massachusetts Historical Commission provided an allocation of $2,550,000 in State Historic Rehabilitation Tax Credits for the project, with MassDevelopment’s $1.8 million loan serving as a bridge until the project is completed and the tax credits are sold and monetized. Construction is underway, and the project is expected to be complete within two years.
“Transforming underutilized properties into housing supports our local workforce while bringing vibrancy to our communities,” said Economic Development Secretary Eric Paley, Chair of MassDevelopment’s Board of Directors. “The reimagination of this vacant industrial building in Worcester will bring 58 new apartments to the city—creating new housing opportunities and breathing life into this historic site.”
“Transforming a historic building that has sat vacant for more than a decade into 58 new apartments is a big win for Main South and for our city’s broader housing goals,” said Worcester Mayor Joseph M. Petty. “Creative adaptive reuse projects like Beacon Street Lofts preserve Worcester’s architectural character while bringing critical housing supply and fresh vitality to the neighborhood without displacing existing residents. We are grateful to the Healey-Driscoll Administration, MassDevelopment, The Massachusetts Historical Commission, Clinton Savings Bank, and Bluestone Residential for their continued investment and partnership in keeping Worcester moving forward.”
“The City of Worcester is grateful for MassDevelopment’s latest investment in Worcester,” said Worcester City Manager Eric D. Batista. “The adaptive reuse of Beacon Street Lofts will create new housing units while preserving a historic building and complement recent investments in the neighborhood as it evolves from a legacy manufacturing district to a mixed-use environment.”
“MassDevelopment is pleased to provide a bridge loan to help Bluestone Residential create 58 new apartments in Worcester’s Main South neighborhood,” said MassDevelopment President and CEO Navjeet Bal. “This project will breathe new life to a vacant and blighted property, add much-needed new housing, and support local economic growth.”
“Clinton Savings Bank is honored to partner with Beacon Street Lofts, LLC and MassDevelopment to provide financing for the adaptive reuse of the long-vacant, four-story historic building in Worcester’s Main South neighborhood,” said Jeanie Connolly, Senior Vice President and Senior Commercial Lending Officer at Clinton Savings Bank. “Through the combination of tax credits, bridge financing and a construction to permanent mortgage provided by Clinton Savings Bank, this redevelopment will transform a vacant property into lasting, inclusive housing resource for the Main South community. This partnership builds on Clinton Savings Bank’s ongoing commitment to community development and housing. Last year, the Bank partnered with MassDevelopment to support the redevelopment of the long-vacant Calvin Coolidge Elementary School in Maynard, transforming the historic property into 12 new units of mixed income housing. Both projects demonstrate how strategic financing and collaboration among community partners can breathe new life into underutilized historic properties, expand housing opportunities, and strengthen the communities we serve.”
“We enormously appreciate MassDevelopment’s early and critical support to this important project in the Main South neighborhood,” said Tim Adler, Principal at Bluestone Residential. “With their support, we look forward to transforming this blighted building into much-needed high-quality housing.”
MassDevelopment previously supported Bluestone Residential with $6.1 million in loan financing in 2021, in partnership with Fidelity Bank, to fund the first phase of redeveloping the formerly vacant Jefferson Mill building in Holden into 34 apartments. MassDevelopment also supported Bluestone Residential with a $2.8 million loan in 2019, in partnership with Main Street Bank, to fund the redevelopment of a former school on Ararat Street in Worcester into 23 apartments.
Bluestone Residential specializes in mid-sized projects, with a focus on the conversion of vacant or otherwise underutilized properties into desirable residential housing with luxury finishes and modern amenities. The company is involved in all phases of the development process: from acquisition, to design, construction, leasing, and property management.
MassDevelopment strengthens communities and advances economic opportunity across Massachusetts through financing, real estate services, and technical assistance. Working with businesses, nonprofits, developers, lenders, and municipalities, the agency financed or managed 538 projects in fiscal year 2026, generating more than $6.52 billion in investment, supporting an estimated 42,113 jobs, and helping create or preserve 4,355 housing units.