Cottonwood Group, City of Boston Provide $172M Construction Loan for Housing Complex

The City of Boston, Leggat McCall Properties and Joseph J. Corcoran Company have secured $172 million in construction financing to build a nine-story, 266-unit mixed-income housing building within the Bunker Hill housing redevelopment in Boston’s historic Charlestown district.

Cottonwood Group provided $122 million in construction debt, while Boston’s Housing Accelerator Fund invested $50 million in equity, according to a release. 

“This public-private partnership reflects Cottonwood’s strong conviction in Boston’s future and our commitment to supporting projects that deliver meaningful community impact,” Alexander Shing, CEO of Cottonwood Group, said in the release. 

Construction is expected to take 18 months, using an innovative building method that will include prefabricated interior and exterior wall systems. The first phase of the larger Bunker Hill housing redevelopment project — which will bring 2,699 mixed-income residential units over the next 10 years — delivered Stellata, a 102-unit, six-story complex in January 2025. 

“Our endeavor to apply construction innovation and leading-edge carbon-reduction strategies to building these healthy, vibrant communities in Boston’s most historic neighborhood is becoming a reality,” said Adelaide Grady, senior vice president of Leggat McCall Properties. 

Brian Pascus can be reached at bpascus@commercialobserver.com.