Worcester Business Journal

wbjournal.com | January 10, 2022 | Worcester Business Journal 9 Voke Lofts $2,525 - $2,619 21 Salisbury St. 145 Front $1,970 - $2,830 145 Front St. The Fairways $1,540 - $2,399 200a E Mountain St. The 6Hundred $1,485 - $2,028 600 Main St. Canal Loft Apartments & Condos $1,250 - $1,850 48 Water St. 100 Wall Street $800 - $1,950 100 Wall St. Apartment complex Monthly rent range Location Rent range for luxury apartments in Worcester Source: Apartments.com We are grateful to be named the Best Nonprofit Fundraiser Event by the Worcester Business Journal, and for the supporters, donors and participants who made it all happen. A RECORD - BRE AK ING $310K+ FROM 7 1 CORPOR ATE S PON SORS MORE THAN $700K R AI S E D IN TOTAL Michael Ermani is working on his own luxury complex on Sunderland Road in Worcester. His version of luxury is a necessity in the city's increasingly competitive market. "Tenants have become really, really picky. If you don't have nice units, somebody else will," Ermani said. Ermani bought the 48-unit complex for $6.6 million aer approaching the previous owner, and already has tenants lined up for the three units he has completed renovations on. His concept of luxury includes new flooring, stainless steel appliances, and granite countertops, which saves on maintenance in the long-run and attracts well-paying tenants. "I have a lot of tenants that are from Boston," said Ermani. "A lot of people work outside of Worcester, but it's still more affordable, so they don't mind the drive." As for the current residents, they will have the option to pay close to market- value rents if they choose to stay, he said. Commuting time is becoming less of a factor for renters, as more people are working from home and only going into work once or twice a week. "You can have an equally sophisticated and luxurious apartment in Worcester, and you can take the train once or twice a week to meet with your folks down in Boston, if need be, but you have the quality of life, the decreased cost of living, and all the cultural resources that Worcester has," said Mark Rengel, vice president of development at the Menkiti Group. e Menkiti Group is a real estate firm based in Washington, D.C. with considerable investments in Worcester. In December, the agency celebrated the opening of its 24-unit luxury and market-rate complex called Chatham Los in Worcester's eater District. e vast majority of proposed and built luxury apartment complexes in the city are concentrated in downtown Worcester near I-290 and Route 9, providing quick access for people commuting east. According to the U.S. Census Bureau, the average Worcester resident commutes 25 minutes to work as of 2019. "ere's room in Worcester for the residential housing market to become more sophisticated and to have a wide variety of products, including some luxury apartments that are a little more higher end," Rengel said. Problems for local workers While landlords are catering toward tenants who work in Greater Boston, Worcester workers may be increasingly challenged to affordable housing in the city. "e only affordable housing you see is the old timers that don't do anything to the units and therefore charge accordingly. Everything else is trending towards luxury," said Ermani. e median individual income in Worcester is $26,671, according to the Census Bureau, significantly lower than Framingham's $39,436 and Marlborough's $38,578. Allen fears Worcester could become a bedroom community for those working in MetroWest if the city doesn't bring in a larger, higher-paying employer. "People in Worcester who live and work … in this community, they're getting priced out," he said, adding they are being pushed into more affordable towns like Webster, Southbridge, and Spencer. Realtor Brian Allen of WorcesterMulti said there are half as many multifamilies for sale as is typical. W PHOTO/CONTRIBUTED

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