Cambridge Savings Bank (CSB), a full-service mutual bank with a customer-first approach and more than $5 billion in assets, today announced it has provided a $61.7 million construction loan to The Michaels Organization (Michaels), a national leader in residential real estate with more than 175,000 residents across 37 states, the District of Columbia and the U.S. Virgin Islands.
Michaels has broken ground on the construction of a 219-unit, modern apartment building in the Dorchester neighborhood located at 780 Morrissey Boulevard. The proposed project, which will feature both market-rate and affordable units, consists of a mix of studios, one-bedrooms, and two-bedrooms — with an average unit size of 622 square feet. The multifamily community will have harbor views with a rooftop deck, 24-hour fitness center, dog park, and a common area for work-from-home and entertainment purposes.
“Strategic growth into a new territory would not be successful without a reputable local partner, which is precisely why we partnered with Cambridge Savings Bank,” said Jay Russo, Vice President of Development of The Michaels Organization, and the lead developer for the project. “We are looking forward to growing alongside them on our first ground-up project in Boston with the construction of an affordable housing community featuring amenity-rich units in Dorchester.”
CSB was made aware of the subject project and contacted The Michaels Organization to inquire about financing opportunities. After initial introductions and in-depth discussions, it was apparent how committed each organization was to community-oriented investments and long-term relationships, and shared corporate values.
A comprehensive due diligence process culminated in the CSB approval to finance the construction of the 780 Morrissey project with the loan closing in the fourth quarter of 2021. Demolition and site preparation commenced in October 2021 with project construction anticipated to take approximately 22 months, reaching completion in July 2023.
Headquartered in Camden, New Jersey, Michaels is the largest private sector owned affordable housing in the United States. While this is their first new construction development in Massachusetts, Michaels has a significant rehabilitation project underway in Springfield, in collaboration with MassHousing.
Michael’s regional presence in Massachusetts includes Development professionals as well as a property management team, and Boston is a primary market for the organization for both affordable and market-rate developments. As they build in the Boston community, Michaels will look toward CSB to deepen their partnership as they navigate a multitude of potential deals in the pipeline in the Massachusetts real estate market.
“We’re proud to help establish The Michaels Organization in the Greater Boston area and are eager to support a community that will be transformed by the 780 Morrissey project,” said David Ault, SVP – Senior CRE Loan Officer at CSB. “CSB’s relationship-centric approach to the partnership with Michaels means we’re not only looking forward to executing alongside them on this project, but on potential new opportunities for years to come.”
For more information on CSB’s commercial real estate lending team, please visit cambridgesavings.com or contact Aidan Hume at ahume@cambridgesavings.com.
Cambridge Savings Bank is a full-service banking institution with over $5 billion in assets. As a mutual bank, CSB is committed to improving the quality of life of our employees, customers, and the communities we serve. One of the oldest and largest community banks in Massachusetts, Cambridge Savings Bank offers a full line of individual and business banking services and has branches located in Arlington, Bedford, Belmont, Burlington, Cambridge, Charlestown, Concord, Lexington, Melrose, Newton, Somerville, and Watertown. To learn more about how we can meet your needs, visit us at cambridgesavings.com, or better yet, stop by one of our branches. Member FDIC. Equal Housing Lender.
The Michaels Organization is a national leader in residential real estate, offering full-service capabilities in development, property management, construction, and investment management. Serving more than 175,000 residents in more than 440 communities across 37 states, the District of Columbia, and the U.S. Virgin Islands, Michaels is committed to crafting housing solutions that jumpstart education, civic engagement, and neighborhood prosperity and to creating Communities That Lift Lives.