Worcester Business Journal

wbjournal.com | April 15, 2024 | Worcester Business Journal 7 Shrewsbury Street 218-apartment project joins list of developments facing delays A planned seven-story residential de- velopment on Shrewsbury Street is the latest Worcester real estate project facing setbacks, hampered by rising construc- tion and financing costs. Lundgren Equity Partners, an Auburn-based corporation behind a planned 204,413-square-foot, 218-unit apartment building at 225 Shrewsbury St., is requesting another extension of variances issued for the project by the Worcester Zoning Board of Appeals, citing conditions in the commercial real estate market. e project, which was first granted special permits in October 2022, had already received a six-month extension for the necessary variances in October 2023. "Lundgren has been forced to delay commencement of work associated with the Project due to challenges with respect to labor and supply chain issues and access to financing and capital re- lated to the rise of inflation and interest rates, instability of the banking system and an overall slowdown in the com- mercial real estate market," reads a cover letter submitted to the board by Joshua Lee Smith, an attorney at Worcester law firm Bowditch & Dewey LLP, which is representing Lundgren for this project. A number of projects in the Worces- ter area have been impacted by con- ditions in the commercial real estate market. Developers behind a planned nine-story development at the former site of Fairway Beef at 102 Temple St. requested an extension for variances in March, one of many projects impacted by interest rates, construction, and labor costs. Lundgren first announced its plans to construct the multifamily high rise at 225 Shrewsbury St. in September aer purchasing the parcel for $5.5 million in 2017. W 695 Main Street, Holden MA 01520 Phone: (508) 829-5566 holdenhearingaid.com/audiologist HAVE YOU EVER HAD A HEARING EVALUATION? Matthew Moreno, Au.D. Doctor of Audiology • Hearing Aids • Batteries & Accessories • Assisted Listening Devises • Amplified Phones • Hearing Evaluations • Wax Removal • Hearing Protection • Musician's Ear Plugs • Swim Plugs Our goal is to improve the lives of people with hearing loss through better hearing and quality hearing care services. We offer comprehensive hearing care services including complete hearing evaluations, hearing loss rehabilitation, education and counseling. No to Worcester rental registry The City of Worcester has launched a new rental registry, where the owners of residential, commercial, industrial properties, and vacant lots rented for any purpose must be registered by a deadline of April 30. The registry includes annual fees ranging from $5 to $25 per unit based on the type of property, and a $300 daily fine for failing to meet the deadline. In their March 27 meeting, members of the Worcester City Council, who previously approved the registry, criticized its rollout, calling for an extension of the deadline or a delay in the imposition of the daily fine. When polled online, a slight majority of WBJ readers opposed the City requiring landlords to register their units. Should landlords be required to register their rental units with the City of Worcester? READER COMMENT: "I own a three-family property on Ferdinand Street, and this is the first I'm hearing about the need to register. If I had not read this in the WBJ, I would have never known and would have been charged $300/day? Outrageous!" - Robert Murner Yes, having such a database has numerous benefits, and the deadline and fines are necessary to force landlords to comply. Yes, but the deadline needs to be extended, and the fine is too high. Yes, but the registry should only be for residential units. No, the city government doesn't need that level of information. No, the registry should be voluntary and without a fine for not registering. 29% 14% 6% 23% The proposed development at 225 Shrewsbury St. Graduate Programs clarku.edu/graduate The Clark MBA | Finance | Fintech Accounting | Analytics and Big Data Computer Science | Project Management Communications | Sustainable Development Public Administration Generous Scholarships for Central Massachusetts Students Local, Flexible, Career-Focused 28%

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