Worcester Business Journal

wbjournal.com | March 18, 2024 | Worcester Business Journal 9 W Rising value of property sales Compared to the 5.5 years before the Pawtucket Red Sox said they were moving to Worcester, the increase in the combined value of all the property sales in the Canal District has far outpaced the entire city and state. Value of total sales volume Canal District Worcester Massachusetts Before WooSox announcement (February 2013 - August 2018) $8.6 million $776 million $88.6 billion After WooSox announcement (August 2018 - February 2024) $24.3 million $1.2 billion $126 billion Increase % 182.56% 54.64% 42.21% Source: CoStar Supercharged property values Since Polar Park opened in May 2021, property values throughout the Canal District have risen 83%, nearly double the citywide increase of 41%. Here is how the value of some of the high-profile properties in the Canal District have changed over that time period. Property Use Address 2021 assessed value 2024 assessed value Percent increase The White Eagle Bar/event venue 118 Green St. $413,500 $731,300 76.86% Worcester Public Market Mixed-use residential 152 Green St. $4,101,948 $6,550,145 59.68% Former Goldstein Scrap Metal building Proposed multi-use development 51 Harding St. $67,800 $234,200 245.43% The Revington Multifamily development 115 Madison St. $686,700 $27,493,700 3,903.74% Speedway Gas station 190 Madison St. $405,700 $853,600 110.40% Hotel Vernon Bar/event venue 16 Kelley Square $783,700 $1,037,400 32.37% Worcester Ice Center Sports venue 112 Harding St. $6,847,900 $8,293,500 21.11% Major Bloom Cannabis dispensary 76 Millbury St. $184,800 $457,900 147.78% iLAH Jewelry Jewelry studio/store 218 Franklin St. $149,000 $238,200 59.87% Crompton Place Commercial retail 138 Green St. $2,074,800 $2,583,300 24.51% Total Canal District (excluding Polar Park) $87,414,748 $159,953,345 82.98% City of Worcester $14,942,221,845 $21,113,360,612 41.30% Sources: City of Worcester assessor; Massachusetts Department of Revenue to see as it relates to urban design and infrastructure," Peter Dunn, chief development officer for the City's Executive Office of Economic Development, said in an email to WBJ. "ankfully, many historic buildings with their unique character have been preserved, the zoning facilitates a mix of business and residential uses, and the infrastructure supports walkability." Interest in purchasing Canal District real estate has spiked 72%. In the 5.5 years since the 2018 WooSox announcement, the neighborhood had 86 property sales, compared to 50 sales in the 5.5 years before the announcement, according to City property records. And the sales prices for those real estate transactions have risen drastically: the total sales volume from August 2018 to February 2024 was $24.3 million, an increase of 183% compared to the 5.5 years before, according to data from real estate information provider CoStar. at far outpaced the 55% increase citywide and the 42% increase throughout Massachusetts. Large-scale development fits & starts e 83% increase in Canal District property values doesn't account for the impact of the Polar Park parcel, which went from an empty lot to hosting a $160-million baseball stadium. From January 2021, when the stadium was still under construction, the City of Worcester's as- sessed value of the property rose from $13.1 million to $146 million in 2024. WBJ didn't include this property in its main calculation because it wanted to evaluate the project's impact on surrounding properties. If the Polar Park parcel was included in the overall Canal District value calculation, the percent increase in value wouldn't be 83% – it would be 204%. Polar Park was only part of the City of Worcester's pub- lic-private economic development plans. In 2018, the City partnered with Boston developer Madison Properties for what was supposed to be an additional $140 million in private investment for two hotels, two multifamily devel- opments, an office building, and a life sciences building. All the Madison developments have been significant- ly delayed. e one near fruition is a 228-unit multifam- ily development now branded at e Revington. e Revington shows how new developments are influencing the rise in Canal District property values. In 2021 when it was largely an empty lot, 115 Madison St. was assessed at $686,700. With the complex now con- structed, its assessed value was $27.5 million in 2024. Other developers proposed multifamily and mixed-use projects in the Canal District, although only one is near completion: e Cove, a 173-unit complex from Worces- ter-based V10 Development. at project at 99 Green St. is under construction, so its assessed property value is down, largely due to the demolition of the original build- ing: from $313,000 in 2021 to $306,000 in 2024. Other developments proposed in the wake of the Polar Park announcement are facing delays. In Janu- ary, Quarterra Multifamily Communities, the North Carolina developer behind the 375-apartment proposal at the former site of the Table Talk Pies factory on Kelley Square, requested an extension of site plan approvals until February 2026, citing troubles with financing. A 105-apartment complex proposed for the former site of the Fairway Beef meat shop by Boston-based AK- ROS Development in February requested an extension, citing money, labor, and supply chain problems, along with a slowdown in the commercial real estate market. "e [Polar] Park is a double-edged sword. It was great for anybody who owned property down there because they cashed out at a super premium, especially right aer the [WooSox] announcement," said Jimmy Kalogeropou- los of RE/MAX Partners - Advance Group in Worcester, a real estate agent who frequently deals with transactions involving the Canal District. "But I think the writing's on the wall. [Former WooSox principal owner] Lucchino couldn't sell the team fast enough. I don't think the park is going to be a success in the long term." Rising value, before Polar Park New development was already happening in the Canal District before the PawSox 2018 announcement. Fletcher invested $21 million into the former dirt park- ing lot at 152 Green St. he bought in 2014 for $900,000, to create the mixed-use Kelley Square Los and Worces- ter Public Market opened in 2020. Its assessed value rose from $4.1 million in 2021 to $6.6 million in 2024. e impact of these and other pre-Polar Park devel- opments are clear from the archives of Google Street View images of the Canal District dating back to 2007. Images of the area from the time depict block upon block of boarded-up buildings and empty lots, with Dumpsters oen outnumbering visible pedestrians. A major turning point in the Canal District's post- 2007 transformation was the purchase by Lorusso, the plumber turned developer, of the Crompton Loom Works building at 138 Green St. in April of that year. "e first day I was just cleaning up the building, de- ciding what to do. I realized this neighborhood emptied out at seven o'clock," said Lorusso. "So I thought mixed- use was something that would work for the area." Aer Lorusso fixed the building, Amy Chase opened her homegoods store Crompton Collective there in 2012. e collective, alongside BirchTree Bread Co. in 2014, quickly began attracting customers, Fletcher said. Yet, the neighborhood remains in transition. High-profile Canal District businesses have closed for a variety of reasons, including e Dive Bar in 2019, Smokestack Urban Barbecue in 2022, and Maker to Main in January of this year. e neighborhood still at- tracts new small-business entrepreneurs, including IIlah Cibis from iLAH Jewelry. Aer operating a Sudbury jewelry studio for 16 years, Cibis opened a whimsical jewelry store on Franklin Street in a former auto garage. Despite being a wealthy town, Sudbury lacked a younger, more energetic population who were looking for her custom engagement rings or one-of-a-kind handmade pieces. She figured those customers would be in the Canal District. "ere's just more movement, whereas people in the suburbs tend to stay where they are," Cibis said. "ere were a lot of factors involved, but I wanted to make pieces for younger people."

• Cover