Cambridge Savings Leads $93M Construction Loan on Boston-Area Multifamily Redevelopment
By Andrew Coen December 7, 2022 3:56 pm
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A joint venture between developers John M. Corcoran & Company and Joseph J. Corcoran Company has sealed $93 million of construction financing to spearhead a mixed-use multifamily project near Boston, Commercial Observer can first report.
Cambridge Savings Bank (CSB) led the the loan for the Innes Redevelopment Project, which will involve replacing eight buildings at the 1950s-built Innes Apartments in Chelsea, Mass., with 350,000 square feet of mixed-use space along with new housing for existing and new residents. Eastern Bank and HarborOne Bank also participated in the deal, although the exact loan breakdown was not released by CSB.
Real estate private equity firm Marcus Partners is also a partner on the project.
“The recent groundbreaking for the Innes Redevelopment project marks a significant milestone as it sets a definitive course for a mixed-income community that will bring promise and possibility to individuals and families in the Chelsea neighborhood,” Peter Mahoney, executive vice president at John M. Corcoran & Company, said in a statement. “It has been a long journey to get to this point in the process and our partners at Cambridge Savings Bank have played a huge role in making it all possible.”
All 96 existing public housing units will be replaced with 40 new middle-income and 194 market-rate apartments added to the property, which is at 54 Locke Street — roughly five miles from downtown Boston. The project will also include new onsite amenities for residents and ground-floor retail space.
The Innes Redevelopment includes a public-private partnership component with the Chelsea Housing Authority, City of Chelsea, Massachusetts Office of Housing and Economic Development and the state’s Department of Housing & Community Development (DHCD) collaborating to help deliver it. The project marks the first of DHCD’s Partnership to Expand Housing Opportunities (PEHO) program, which aims to establish public-private partnerships between housing authorities and developers for preserving public housing through the creation of mixed-income communities.
“This partnership is an important milestone in our commitment to create safe and affordable housing opportunities in the greater Boston area. The Innes Redevelopment project is sure to be transformative for the Chelsea neighborhood as it will ultimately uplift residents and increase economic mobility across the community,” Ian Brandon, senior vice president, head of commercial real estate at CSB, said in a statement. “It is of the utmost importance for CSB to support affordable and mixed-income housing projects now and in the future that will provide resources to individuals and families who need them the most.”
The $93 million loan by CSB comes hot on the heels of the bank providing $84.5 million of construction financing for Strategic Land Ventures to build two affordable housing projects in Winchester, Mass., in August.
Andrew Coen can be reached at acoen@commercialobserver.com.
