The Union Street Lofts, a new mixed-use complex in the heart of downtown New Bedford that’s been three years in the making, has finally been completed. It offers 35 apartments – 20 of them ‘‘affordable’’ – and 15,000 square feet of retail and commercial space.
The project, which cost $13 million, including about $8.5 million in direct construction costs, was a collaborative effort by the City of New Bedford, WHALE (the Waterfront Historic Area League), real estate firm HallKeen Management and Sovereign Bank.
Sovereign, based in Philadelphia, was the main financial backer and the only commercial bank involved. HallKeen was the developer. It co-owns the lofts with WHALE, in a partnership that includes, as a limited partner, the Massachusetts Housing Investment Corporation.
‘‘Union Street Lofts represent the best of what a public-private partnership is all about’’ said Andrew Burnes, president and CEO of HallKeen. ‘‘The initiative embodies key smart-growth principles and will be viewed as a model for future partnerships.’’
Based in Norwood, Mass., HallKeen specializes in the development and management of affordable housing, Burnes said. It also gets involved in economic-development projects that involve affordable housing, as this one did.
Sovereign, which has more than a 53-percent deposit market share in New Bedford – most of it acquired through Sovereign’s purchase of Compass Bank – got involved in order to meet a community need and strengthen the city’s economic base, said Minnie Saleh, the bank’s regional president for Bristol County. ‘‘We really understand the challenges that our city faces,’’ she said, ‘‘and our commitment to being a good corporate citizen includes demonstrating our support of important initiatives such as this one.’’
Sovereign has its local headquarters on Union Street, just a couple of blocks from the lofts, and ‘‘it hurts to see the old buildings in New Bedford left abandoned,’’ Saleh said.
This project ‘‘brings new life to our downtown,’’ she added, and as they attract people to the area, ‘‘we hope to gain new customers as a result.’’
The Union Street Lofts were developed by rehabbing five separate turn-of-the-century buildings: the Phinney Building, New Bedford Dry Goods, the A.E. Coffin Building, the Haste Building and the Eddy Building – all in New Bedford’s historic district.
The buildings, on both sides of Union Street, between Pleasant and Purchase streets, were renovated into studio, one- and two-bedroom rental lofts. They all have brick and stone exteriors; new electrical, plumbing and heating systems; air conditioning; cable television; and broadband Internet access.
Each loft is designed to capture the maximum amount of natural light. Several have harbor views. The rents for market-priced units – the only ones still available – range from $900 to $1,100, according to project manager Mark Hess.
The interiors were completed in November and December. Since then, all but four of the apartments have been rented out, Hess said, and two more are expected to be snatched up soon.
Much of the retail space still remains vacant, however – including the full 7,000 square feet in the AE Coffin Building which also has office space and three “live-work” spaces Hess said “are something unique and special.”
Across the street, there already are a barber shop, a video rental store, a convenience store, and a hot dog stand.
HallKeen will be hosting an open house at the lofts this Thursday, as part of the city’s monthly gallery night. A formal ceremony to unveil the buildings was held late last month.
The project employed local vendors Bufftree Building Co., Franklin Analytical, Dyer Brown, Medium Studios and Beaumont Sign, and the dozens of local subcontractors.
Additional financing was provided by Federal Home Loan Bank, the Mass. Department of Housing and Community Development, MassHousing, MassDevelopment, and the Massachusetts Historical Commission.
