$2B Boston Redevelopment Secures Financing Package
More than 3,000 units are slated to replace an existing public housing community.
WinnCompanies and the Boston Housing Authority have secured a $70 million financing package for a 94-unit affordable development in Boston. This is the first building of a larger, 3,300-unit project, valued at $2 billion.
The Architectural Team provided design services while a joint venture between Lee Kennedy Co. and H. J. Russell & Co. serves as the general contractor.
Set to replace the 1,016-unit Mary Ellen McCormack public housing complex, the new mixed-income community will rise in two phases over two decades.
Developers expect completion of the 94-unit Building A in the fall of 2026. Floorplans will include one- to four-bedroom layouts. Featuring green building practices, the project will be Passive House certified and utilize all-electric systems. Additionally, the development marks WinnCompanies’ and Boston Housing Authority’s first joint geothermal system.
READ ALSO: National Affordable Housing Report – March 2025
Stage one will total 1,310 units built throughout eight buildings, of which 781 will be newly constructed middle-income and market-rate, and 529 will replace existing public housing apartments. This phase will also include walking paths, bike infrastructure and gathering spaces, as well as 33,000 square feet of retail.
The 1938-completed Mary Ellen McCormack public housing complex is at 10 Kemp St., about 3 miles south of downtown Boston. Andrew Square MBTA Red Line subway station can be found within walking distance.
The financing package for Building A includes:
- a construction loan from Bank of America
- 4 percent LIHTC and Energy Tax Credit equity from Bank of America
- a tax-exempt bridge loan and tax-exempt first mortgage loan from MassHousing
- a subordinate loan from the Affordable Housing Trust Fund maintained by the Massachusetts Executive Office of Housing & Livable Communities
- a subordinate loan from the Boston Housing Authority
- 9 percent LIHTC equity from Bank of America with a loan from BlueHub Capital
Future construction stages will scale up
Once construction finishes, the crew will look to finance and build the 300-unit mixed-income Building B, as well as the 196-unit Building C—of which 172 will be senior housing apartments.
A staggered demolition process will take place, allowing most existing residents to move directly into new units. Boston Housing Authority will retain ownership of the land to preserve permanent affordability for low-income families. WinnCompanies will assume management, ownership and maintenance of the buildings.
This redevelopment marks the largest construction effort ever undertaken by WinnCompanies. Outside of redevelopment, the firm also converts commercial properties into affordable housing. Last November, WinnCompanies and Westmass Area Development Corp. opened a 95-unit partially affordable senior housing community in Ludlow, Mass., that was once an industrial mill.
Boston affordable development maintains momentum
Tackling the affordable housing supply challenges, Boston developers had more than 2,800 units under construction across 29 properties throughout the metro as of March, according to Yardi Matrix data.
Should market conditions hold, the data provider forecasts 846 units in affordable assets will come online in the metro this year. This figure aligns with last year’s total, which stood at about 840, signaling that the segment will not lose momentum in 2025.
Among notable such projects that came online in Boston last year was Cruz Cos.’ Michael E. Haynes Arm, a 55-unit community named after a local civil rights leader. Development costs rose to $83 million.
