A development company that owns several properties in downtown Worcester wants to redevelop offices on Main Street into 48 new market-rate apartments.
The Washington D.C.-based Menkiti Group is proposing to turn underutilized offices on the upper floors of 401-409 Main St. into housing, according to city council communications sent from Worcester City Manager Eric D. Batista and Chief Development Officer Peter Dunn.
Of the 48 market-rate apartments, just five will be available for people who are making no more than 60% of the region’s area median income (AMI) according to Dunn’s communication.
Worcester is currently facing a shortage of market-rate and affordable housing and needs to add more than 12,000 units by 2033.
The average market-rate rent in Worcester is $2,100, according to Zillow.com.
Batista is asking the city council to designate the property as eligible for tax credits under the state’s Housing Development Incentive Program (HDIP). The program provides tax credits to developers for the construction of market-rate housing in gateway cities, such as Worcester.
The City Manager is also requesting the council to approve a 10-year real estate tax exemption on the property’s new value.
The council will review the finance proposals at its Jan. 13 meeting.
The building at 401-409 Main St. is known as The Clark Block, which was built in the mid-to-late 19th century, according to documents from the Massachusetts Historical Commission.
Menkiti is also currently constructing 20 apartments at 204 Main St.
