Who: Mayor Domenic J. Sarno, Springfield Chamber of Commerce and Guest Speaker Laurie Volk
What: Release of the Latest Downtown Market Rate Housing Study
When: Thursday, November 14, 2013 at 10:30 AM
Where: One Financial Plaza, 9th Floor, Springfield, MA 01103
WASHINGTON, D.C. – November 18, 2013 – (RealEstateRama) — Mayor Domenic J. Sarno today announced the results of a market rate housing study commissioned for Springfield, indicating a strong potential for new downtown market-rate housing.
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“We see tremendous opportunity here in Springfield and this study confirms that the market is there,” said Mayor Sarno. “We are confident that with the MGM project coupled with other significant projects downtown including Union Station, downtown is perfectly positioned for new market rate housing.”
The study was completed by national expert Laurie Volk of Zimmerman/Volk Associates (ZVA), who presented the findings this morning at a function sponsored by the Springfield Chamber of Commerce. The Springfield Chamber has been a strong participant and supporter of city efforts ranging from Urban Land Institute to MassINC.
“We’ve been excited to see past reports assist in development and are confident this report will help spur new market rate housing,” said Chamber President Jeffrey Ciuffreda.
ZVA completed a pair of studies in their work, which was funded under a grant of the Economic Development Administration (EDA) under a city partnership with the Pioneer Valley Planning Commission (PVPC). ZVA’s work covered a study in the Metro Center neighborhood as well as the South End neighborhood.
“With major public investments, a massive mixed-use entertainment complex planned, coupled with our comprehensive strategy around lighting and security, we think downtown is going to be an attractive option for development in the near term,” said Kevin Kennedy, Chief Development Officer.
The downtown study served as an update to ZVA’s work on the same subject in 2006. As the housing market took a severe downturn after that point and new factors influencing the downtown landscape, the city requested an update to that work.
The findings indicate that while the for-sale condominium housing market has declined both nationally and locally, the market for new rental, market-rate apartment housing remains strong – and actually stronger in downtown Springfield than it was in 2006.
The findings for downtown show the market potential exists for 106 to 171 new units of market rate housing per year, for the next five years as well as an additional sum of between 78 and 124 in the South End neighborhood. Volk described the potential market segments most interested as well as target pricing; the full studies are available at www.springfieldplanning.org.
The MGM project, which includes 54 units of new market rate housing, is seen as a potential springboard for additional projects. The redevelopment of the former School Department Headquarters at 195 State Street has recently begun construction for the development of 35 new units and other projects are in various stages of planning.
Springfield and the Commonwealth approved a new Housing Development Incentive Program (HDIP) zone in December of 2012, which offers developers special incentives for creating new, market rate, housing in urban centers including downtown Springfield.
CONTACT:
Jim Leydon
Communications Director
Office of Mayor Domenic J. Sarno
