MassDevelopment has completed the sale of 193-197 Union St. in New Bedford, the site formerly associated with the Keystone building, to Union Street Member LLC, a real estate development entity affiliated with One Circle Co. In conjunction with the property transfer, MassDevelopment is providing a bridge loan of $3,212,750 to Union Street Member LLC to support the planned redevelopment. The project is also described as receiving financing from additional public-private sources, indicating multiple capital providers participating alongside MassDevelopment.
Plans for the site call for a new 42,000-square-foot mixed-use building. The developer intends to deliver 45 new units of market-rate housing on the upper floors, with commercial space at the ground level. The project is positioned within downtown New Bedford, bringing both residential and commercial uses to what is currently characterized as a long-vacant parcel. The introduction of market-rate housing combined with ground-floor commercial space is designed to add new activity to this portion of the downtown area.
Construction on the mixed-use building is expected to get underway this month, according to the announcement, marking the next step in the transition from a vacant site to an active residential and commercial property. The development team is targeting completion by summer 2027. This timeline establishes a multi-year build and delivery window, during which the bridge financing from MassDevelopment and the additional public-private funding sources will support the project through construction and into stabilization.
Commenting on the redevelopment, Economic Development Secretary Eric Paley, who serves as Chair of MassDevelopment’s Board of Directors, emphasized the importance of reactivating the former Keystone site. He noted that the project will transform a long-underutilized parcel into new housing and commercial space within downtown New Bedford, highlighting the broader relevance of turning inactive sites into productive assets. Paley also pointed to the collaboration between public and private entities as a key element in advancing the project.
The combination of MassDevelopment’s role as both seller of the property and provider of the bridge loan, together with additional public-private financing, outlines a capital stack that blends public support with private investment. As the 45-unit, 42,000-square-foot mixed-use building moves from pre-construction into active development, the project is set to add new market-rate residential units and street-level commercial space to downtown New Bedford on a defined schedule through summer 2027.
