Home Industries Financial Services Plans for $70M project anchored by new BankRI HQ scrapped in 195...

Plans for $70M project anchored by new BankRI HQ scrapped in 195 district

By

Katie Castellani

-

02/21/2025

BankRI_NewHQ_Rendering_PerkinsEastman-696x522 — EARLY PLANS for a $70 million building on Parcels 8 and 8A on the I-195 land in Providence included 58,000 square feet of offices for Bank Rhode Island's new headquarters. The project has now been halted. / RENDERING COURTESY PERKINS EASTMAN

PROVIDENCE – A $70 million development project on former Interstate 195 land that was to be anchored by a new headquarters of Bank Rhode Island has been halted before it started, the victim of higher interest rates and soaring construction costs, the developer says. Since 2022, BankRI planned to open a new headquarters on Parcels

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PROVIDENCE – A $70 million development project on former Interstate 195 land that was to be anchored by a new headquarters of Bank Rhode Island has been halted before it started, the victim of higher interest rates and soaring construction costs, the developer says. Since 2022, BankRI planned to open a new headquarters on Parcels 8 and 8A in the Fox Point section of the city, a project led by Providence developer D+P Real Estate Inc. that would have included mixed-income apartments, retail space and a parking garage. Construction on the grassy plot of less than an acre behind Trader Joe's was initially expected to begin in the summer of 2023 but had been delayed because of economic headwinds. D+P Real Estate finally let its contract with the I-195 Redevelopment District Commission expire at the end of 2024. Jordan Durham, principal of D+P Real Estate, told Providence Business News that the project has stopped because of “dramatic” turns in the market with rising costs and interest rates. He said costs for the project skyrocketed by more than 50% than what was originally expected, partially because the project’s design got more complex. “It’s just an extraordinarily challenging time for a project of this caliber,” Durham said. Durham did not have a clear estimate for when, or if, the project would resurface. He said the firm has been slowing down projects across the board. The most recent project the developer completed was on the I-195 District’s Parcel 6, a mixed-use development anchored by Trader Joe’s and home to 60 mixed-income residential units. Mike Cerio, a spokesperson for Bank Rhode Island, declined to comment on the halted project and did not answer questions about where plans for a new headquarters stand. BankRI, a subsidiary of Boston-based Brookline Bancorp Inc., has run its headquarters out of two floors of Turks Head Building in downtown Providence for more than 15 years. Two years ago, the bank said it had “outgrown the space." In December, Brookline and Berkshire Hills Bancorp Inc., also based in Boston, agreed to merge in an all-stock transaction valued at $1.1 billion. It's unclear how the merger will affect BankRI. Katie Castellani is a PBN staff writer. You may contact her at Castellani@PBN.com.