Proposals for new apartments move forward in I-195 district

PROVIDENCE — Two development proposals that promise more concentrated housing in downtown Providence will move forward as finalists for Parcel 28 in the I-195 Redevelopment District, an overseeing commission decided last night.

Projects by DMG Investments LLC and Exeter Property Group were selected as the finalists among five competitors. Once the project teams return with a refined proposal and specific terms for the land purchase and development, the I-195 Redevelopment District Commission will decide which one moves forward.

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Based on board documents and public presentations:

• DMG is partnering with a Boston architect, Bergmeyer, in a 13-story building that would have 344 rental apartments of varying sizes, from studios to three bedrooms intended for families. The residential floors would rise over a 23,346 square foot base of retail, in a building constructed of modern glass and steel. The building would be set on a diagonal on the trapezoid-shaped lot. The project would cover more than 424,000 square feet based on its height, and the developer has proposed purchasing the land for $1.45 million
• Exeter Property Group, based in Pennsylvania, is a real estate private equity developer which has proposed a multifamily building with 246 units aimed at young workers coming into Providence for medical and education industry jobs. Almost 90% of the apartment units would be studios or one bedrooms. The residential floors would be placed over ground-floor retail with amenities aimed at the new residents, including a yoga studio. The building would cover 241,000 square feet and the developer has suggested a purchase price of $2 million for the parcel

The I-195 commission met for more than an hour in a closed session Wednesday to discuss the multiple proposals for the parcel, which is located at Chestnut and Clifford streets in the Jewelry District.

On emerging, the commission members said little about the discussion that transpired, before voting to push DMG and Exeter on to final consideration.

In making that motion, Commissioner Mike McNally, a former executive at Skanska, said the board opted to choose the projects that promised to yield the best use of the land, with the most dense development and require the least taxpayer subsidy.

Afterward, he elaborated on the choices.

The proposals reflected the most developed square-footage of the projects, he explained.

The best use of the real estate, he said, now includes development of more housing for workers. The city has among the tightest rental markets in the United States, according to real estate professionals.

The two finalists proposed the most apartment development of the five, according to a market analysis by RES Group, prepared for the I-195 commission.

“Young people come into town and they can’t find a place to live,” McNally said. “What you see, with the pressure of housing, the economics work. That’s why we had four proposals for housing.”

The two projects also are seeking the lowest amount of taxpayer subsidy, he noted. The amount of that request has not been made public.

Chairman Robert Davis said the multiple proposals for the site were a “unique” situation. All five were quality developers, he said. “Unfortunately, this is a process where some people prevail and others don’t. We want to say genuinely to those whose projects did not move forward, that we sincerely hope they will continue to remain interested in the district. We can find other parcels on which their proposal would be a success.”

In other business, the commission voted to appoint Caroline Skuncik as acting executive director. She will temporarily fill the position that will be vacated on June 1 by outgoing Executive Director Peter McNally.

Mary MacDonald is a staff writer for the PBN. Contact her at macdonald@pbn.com.