The Menkiti Group has received more public financial support for its conversion of a Downtown Worcester building into apartments.
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The Menkiti Group has received more public financial support for its conversion of a Downtown Worcester building into apartments.
The Washington D.C.-based development firm received $2.33 million in tax credits from the state’s Commercial Conversion Tax Credit Initiative. The tax credit is intended to support its buildout of 48 apartments in the former Shack’s Clothes building at 401-405 Main St, according to a Wednesday announcement from the Gov. Maura Healey Administration.
Menkiti is redeveloping the site’s upper floors of the building into apartments, including five affordable units reserved for households earning no more than 60% of the area median income. The building will include studios, as well as one- and two-bedroom apartments.
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Menkiti’s project previously received a 10-year tax increment exemption from the City of Worcester, which will see the property save $613,211 in taxes over the life of the deal.
The Worcester City Council narrowly approved that tax-increment exemption for the $27-million redevelopment project in March, with members of the public expressing concerns about the tax break, citing alleged wage theft by subcontractors used by Menkiti.
The project received a $3.6-million credit from the state’s Housing Development Incentive Program.
The Commercial Conversion Tax Credit Initiative seeks to help developers transform commercial buildings into residential properties. Boston-based Synergy Investments received $3.6 million from the initiative in February to support its development of the former Fallon Health headquarters into 200 apartments. That building plans to welcome its first tenants on Sep. 1.
Known as the Clark Block, Menkiti's building dates back to the 1850s.
The property received a 2026 assessment value of $589,500, according to City of Worcester property records. Menkiti purchased the site for $600,000 in 2017.
Menkiti Group’s award was the sole Central Massachusetts recipient in a larger round of $15.3 million in tax credits, which the state says will help create 856 new housing units.
Eric Casey is the managing editor at Worcester Business Journal, who primarily covers the real estate and banking & finance industries.
