Related Begins Full Renovation of Greater Boston Affordable Housing
The work will guarantee affordability at the property for 30 years.
Related Beal, the Boston-based arm of Related Cos., together with Related Affordable, are planning a $38 million full renovation of Loring Towers, a 250-unit affordable housing community located in Salem, Mass. Now that financing is in place, the partners will proceed with the work beginning in August.
MassHousing is providing financing through a tax-exempt construction-to-permanent loan. Other fiunding includes the allocation of federal Low Income Housing Tax Credits by the Massachusetts Executive Office of Housing and Livable Communities.
The multi-phased renovation will deliver lasting improvements to resident units and extend their long-term affordability to 2056, according to Related. The property, originally developed in 1974, offers one- and two-bedroom units. Completion of the renovation is slated for 2028.
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The work will include in-unit upgrades such as updated kitchens with new appliances and countertops; fully renovated bathrooms with new bathtubs, sinks and vanities as well as new flooring, paint and upgraded electric panels. The lobby, community room, and management offices will also be renovated and the parking lot repaved with the addition of a new solar carport structure.
Other property updates will include the complete replacement of the building’s roof and plumbing, an improved security system, new HVAC systems, alongside new windows and elevators. Additionally, the property will also feature a new basketball court and children’s playground, created in partnership with KABOOM!, a play space nonprofit.
Related Cos. acquired the property in 2018 in a portfolio transaction that involved the sale of single-asset entities that held title to Loring Towers in Salem and the 100 New Baltimore Place in New Baltimore, Mich. In July of this year, the Salem property was recapitalized with an $46.5 million sale that added PNC Real Estate to the ownership group, according to Yardi Matrix.
Greater Boston’s affordable housing squeeze
The Boston area is one of the more expensive multifamily markets in the country. Rents for properties classified as renter-by-necessity, for example, have spiked from $1,482 a month in 2014 to $2,378 in 2025, according to Yardi Matrix data.
The shortage of affordable housing persists nationwide, and because of the economics of development, supply creation continues to focus on higher-rent properties. Fully affordable properties currently represent only one-fifth of units under construction as of mid-2026.
Efforts are thus being made to preserve existing affordable housing. Hudson Valley Property Group entered the Massachusetts affordable housing market in February with the acquisition of Boston Bay and Hope Bay, two communities in Boston’s Dorchester neighborhood totaling 133 affordable units. KeyBank provided a Fannie Mae loan to facilitate the communities’ preservation as affordable housing, which will cost $52.5 million.
