Purchase agreement negotiated for Parcel 9 in I-195 Redevelopment District

PENNROSE LLC has negotiated a purchase agreement for Parcel 9 in the I-195 Redevelopment District. / RENDERING COURTESY I-195 REDEVELOPMENT DISTRICT.

PROVIDENCE A one-acre parcel of land in the I-195 Redevelopment District will be sold to Pennrose LLC for development of 131 apartment units, under a purchase agreement authorized by the district commission Wednesday.

The purchase price will be $240,000, divided into the two phases and based on the number of units in each. All but $25,000 of the purchase price will be financed by the commission, under a 20-year loan with 1% annual interest.

Additional payments of $280,000 for each phase will be made to the commission, as well.

The project is designed to bring a mix of affordable, market-rate and workforce-rate apartments into Fox Point. The lot is Parcel 9 of the district.

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THE PROJECT will be developed on Parcel 9 of the I-195 Redevelopment District. / COURTESY I-195 REDEVELOPMENT DISTRICT COMMISSION/GOOGLE LLC

The first phase will have about 42% market-rate units, with the remainder split among affordable and workforce rentals. The second phase of the development will have a similar mix.

The developer plans to seek Low Income Housing Tax Credits to help finance the development. It will have until June 2023 to secure those incentives.

Commissioners approved the language of the purchase agreement with little discussion, following a meeting in executive session.

“This will be an important project,” said commission chairman Robert Davis, following the vote.

Pennrose, which has offices across the country, including in Boston, has built more than 265 projects in 16 states and the District of Columbia. This would be its first project in Rhode Island.

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

Correction: A previous version of this story inaccurately identified amounts that will be paid in addition to the purchase price for each phase of the project. Additional payments of $280,000 for each phase will be made to the commission.

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