MassDevelopment has issued a $38-million tax-exempt bond on behalf of Lakeside Phase 1 Four LLC, an affiliate of Tremont Development Partners and E3 Development, to finance the first phase of the redevelopment of the Worcester Housing Authority’s Lakeside Apartments community, located at 19 Garland St. and 34-46 Lakeside Ave in Worcester. The existing buildings, which were originally developed in 1949, will be replaced with two new buildings designed to Passive House standards.
The tax-exempt bond, purchased by Eastern Bank with participation from Webster Bank, helped the borrower achieve a lower cost of capital. Massachusetts Housing Partnership and Eastern Bank will assume the bond and provide long-term fixed-rate financing for the project upon construction completion.
In addition to the tax-exempt bond, MassDevelopment assisted the Massachusetts Executive Office of Housing and Livable Communities with the approval of federal Low-Income Housing Tax Credits that will provide approximately $28.9 million in equity for the project.
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