Mack-Cali Subsidiary Scores Construction Loan from Citizens Bank for Massachusetts Project



Providence, R.I.-based Citizens Bank has provided a $41.5 million construction loan to a Mack-Cali Realty Corporation subsidiary for its mixed-use development in Worcester, Mass., Commercial Observer can exclusively report.

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The financing will go toward the first phase of the construction project being spearheaded by the subsidiary, Roseland Property Company. The first-round development plans call for 237 residential apartments, 12,000 square feet of indoor amenity space and a courtyard over a four-acre patch located between Front, Foster, Franklin and Trumbull Streets in the central Massachusetts city.

“The Citizens commercial real estate finance team has been a great partner on this deal,” Marshall Tycher, president of New Jersey-based Roseland, said in prepared remarks provided to CO. “They bring great ideas and a wealth of experience in the Massachusetts market and are able to execute quickly.”

All said and done, the total project will contain 365 market-rate rental units between two buildings, in addition to more than 400 parking spaces and street-level retail space.

“We like this project and believe it helps meet a need for multifamily housing in Worcester,” Gary Magnuson, the bank’s head of commercial real estate finance, said in a statement. “Roseland is an extremely important client. We highly value their relationship, and we look forward to working with them on this project and in the future.”

The development, part of a larger plan to revitalize Worcester’s downtown area, was approved by the city’s planning board last December, as the Worcester Telegram & Gazette reported.

Joseph Shea, the senior vice president of Roseland, told the local newspaper last year that the market-rate apartments will be a mix of studios, one- and two-bedroom units. The target demographic, he added, is the young professional crowd ranging from ages 25 to 35.