Worcester’s Main South Community Development Corp. has opened six new affordable and lease-to-own commercial condominiums at 807-815 Main St., a project designed to give local small business owners a path to generational wealth.
The concept originated during MassDevelopment’s Transformative Development Initiative district established in Main South from 2018 to 2022. TDI Fellow Ivette Olmeda’s discussions with local business owners showed they desired the chance to own their own premises, according to an announcement from Main South CDC on Monday.
Main South CDC and other organizations involved in the project held a ribbon-cutting on Tuesday to celebrate its completion. Tenants at the site include Aretha’s Kitchen restaurant, Pikanada’s Bakery, Ilkhy’s Salón, The Grease Barbershop, and Mandi’s Travel Agency. One of the spaces remains unoccupied.
[Want more real estate news? Sign up for Real Estate Insider.]
The project was funded with $2.4 million in funding from MassDevelopment, including a $650,000 loan from the agency and $1.79 million in grants. The City of Worcester provided a brownfield redevelopment grant to remove 3,000 tons of arsenic-contaminated soil at the site and provided American Rescue Plan Act funding, while UMass Memorial Health’s Anchor Mission provided a low-interest loan to help ensure affordability.
Worcester-based Bay State Bank is providing mortgages with below-market interest rates and reduced down payments for tenants.
“On what were once vacant lots now stand six vibrant new retail spaces, with the opportunity for local business owners to build wealth through their storefronts and stay in Worcester’s Main South neighborhood as long as they choose to,” MassDevelopment President and CEO Navjeet Bal said in the announcement.
The 7,519-square-foot building was approved by the Worcester Planning Board in 2022, with Main South CDC purchasing the then-empty lot for $400,000 in November of that year, according to Cityproperty records.
Founded in 1986, Main South CDC works to create business and housing opportunities in the neighborhood.
The organization is working to build 41 units of affordable workforce and senior housing at a former funeral home site on Hammond Street.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.
