Worcester Business Journal

wbjournal.com | December 23, 2024 | Worcester Business Journal 29 Year in Review: Housing WPI makes controversial purchase of two Worcester hotels official e blowback against Worcester Poly- technic Institute from some of Worces- ter's top political and business leaders has failed to dissuade the city's largest higher educational institution from following through with its purchase of two Gate- way Park hotels, as WPI has bought the properties for a combined $46 million. WPI purchased 72 Grove St., the site of the Courtyard Worcester hotel oper- ated by Marriott, for $25.6 million and 65 Prescott St., the site of the Hampton Inn & Suites Worcester, for $20.4 million. Both deals were finalized on Sept. 13. Both properties were purchased from BREIT Mass Property Owner LLC, a Chicago-based entity operated by Black- stone, a prominent asset management firm based in New York City. Blackstone purchased both properties in October 2017 for a combined $29.76 million, according to City of Worcester records. WPI plans to purchase the two hotels and slowly convert them to student housing over the course of several years received a rare public rebuke from the Worcester Economic Development Co- ordinating Council, a behind-the-scenes organization made up of government and business officials, and raised ques- tions among some Worcester nonprofit and activist figures over what voices are included in major planning and develop- ment discussions in the city. Both hotels will continue to operate at their current capacity until 2026, at which point the 100-room Hampton Inn will be converted to student housing; WPI expects the 134-room Courtyard Worcester to operate as a hotel through at least 2030, according to an Aug. 26 public letter from WPI officials. e organized campaign against the purchase has continued since the EDCC's original letter, with Worcester Regional Chamber of Commerce President and CEO Timothy Murray sending a letter to the Massachusetts Executive Office of Economic Development and MassDevel- opment, questioning the latter's decision to award the project financing, according to the Worcester Telegram & Gazette. WPI officials say the purchase will lead to more rental housing being available for families and others seeking affordable housing. Worcester City Councilor Candy Mero-Carlson has also asked for details on the ramifications of the purchase on the city's travel and tourism efforts and if there's any conditions to allow the City to tax a property owned by a university. Mero-Carlson called for the City to con- sider any potential legal avenues it had to push back against WPI's plans. Wayland apartments sold for $98M to BlackRock A 218-unit apartment community in Wayland has been sold for $98.7 million to a New York asset management firm. Alta Oxbow, located at 490-494 Boston Post Road, was sold in a deal finalized on Aug. 23 to Comref Oxbow LLC, accord- ing to Middlesex South Registry of Deeds records, an entity managed by New York- based asset investment and management firm BlackRock. e 8.26-acre property was sold by Alta River's Edge LLC, an entity managed by Wood Partners, a Georgia-based mul- tifamily housing development firm. Wood Partners operates a number of apartment communities across the coun- try, including Alta on the Row, a 370-unit complex in Worcester which opened in May at the former site of the Our Lady of Mount Carmel Church. e company is constructing Alta French Hill, a 276-unit Marlborough apartment complex set to be completed in the spring of 2025. Constructed in 2022, Alta Oxbow is a luxury development, with 55 income-re- stricted units. Of those 55 units, 17 are set aside for residents over the age of 55. Rents for available apartments at the complex range from $2,085 for a one-bedroom, one-bath unit to $4,469 for a two-bedroom, two-bath unit, according to Apartments.com. Amenities at the site include a resident clubhouse, a library, a golf simulator, and coworking spaces. e sale was facilitated by Berkadia, a Boston-based joint venture of Ne- braska-based Berkshire Hathaway and Jefferies Financial Group in New York City. A listing for the property listed several attributes that made it appealing for purchase, including the potential for rent increases at the site. Worcester Polytechnic Institute's operations in Gateway Park now include the Courtyard by Marriott and the Hampton Inn & Suites. Development firm led by Harlan Crow buys site of proposed apartments Maple Multi-Family Development LLC, a Dallas-based firm, has pur- chased the site of its proposed 220-unit apartment complex on Oriol Drive in Worcester for $4.5 million. e transaction, finalized on June 28, saw Maple Multi-Family purchase 3 Oriol Drive from Holden-based Lincoln Heights Inc., according to Worcester District Registry of Deeds records. e 13.33-acre parcel is located be- tween Lincoln Street and Interstate 290. e property was given a tax assessment value of $175,500 in 2024, according to City of Worcester property records. e planned development, dubbed Alexan Worcester, was announced in September 2022. e project was granted a two-year extension of approvals by the Worcester Planning Board in May 2023 aer the developers requested more time to complete the project. e proposed apartment complex is set to be composed of two five-story buildings. Plans call for the creation of approximately 344 parking spaces. Maple Multi-Family Development LLC is registered to Michael Levy, CEO of Dallas real-estate giant Crow Hold- ings, and Ken Valach, CEO of Crow Holdings Development. Crow Holdings' board of directors is chaired by former company CEO Harlan Crow, the son of the company's late founder, Trammell Crow. Crow is a major donor to the Republican Party and conservative causes and has received scrutiny for his close ties to U.S. Supreme Court Justice Clarence omas. W 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 High: 3,692 Low: 791 1,349 Greater Worcester new housing starts New privately owned housing units permitted Note: The U.S. Census Bureau considers Greater Worcester to include Worcester County and the northern part of Windham County, Connecticut. Source: U.S. Census Bureau

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