312-Unit Development Proposed For Worcester Commerce Building

WORCESTER, MA — A New York City-based developer wants to buy Worcester's Commerce Building for a 312-unit project, and is seeking a tax exemption to pursue the development.

The Worcester City Council on Tuesday will discuss SilverBrick Group's plan to buy and renovate the Commerce Building, which dates to the late 1890s. SilverBrick is seeking a 15-year tax increment exemption worth about $3.4 million.

Under the redevelopment plan, the Commerce Building would be rehabbed to include 80 studio, 183 one-bedroom, 39 two-bedroom and 10 three-bedroom units. The apartments would rent at market rates, estimated to be about $1,250 for a studio and $1,350 for a one-bedroom.

SilverBrick would also renovate 18,000 square-feet of commercial space, and create 260 parking spaces. The total cost of the project is estimated at about $54 million, including the cost to buy the building.

The project would be completed in two phases. The first phase would produce over 200 apartments, plus renovations along the first floor.

"This proposed project further contributes to the revitalization downtown and the momentum in the city, despite the unprecedented pandemic the city has been dealing with over the past six months," City Manager Edward Augustus Jr. wrote in a letter to City Council about the proposal.

The developer has completed similar large renovation projects of historic buildings in Springfield and Hartford. SilverBrick nearly lost a tax break on a Springfield building over substandard plumbing, according to MassLive.

The Commerce Building will be about 60 percent vacant by the end of 2020, according to city officials. The building has largely been home to state offices, plus a variety of small businesses that operate on the first floor along Main Street.