NEW BEDFORD – A downtown building that most recently housed a craft burger restaurant is being converted into apartments.
The nearly $8 million redevelopment project to create 19 apartments at 89 N. Water St. is scheduled to begin this fall and be completed next fall.
The four-story brick building on the corner of Elm Street that formerly housed dNB Burgers was purchased by Franklin Hospitality Corp. for $1.7 million in June 2023. The building has been vacant for several years.
The settlement will be called Elmwater Landing.
Franklin Hospitality Corp. is affiliated with Lafrance Hospitality
Franklin Hospitality Corp. is closely associated with Lafrance Hospitality of Westport, a third-generation family-owned business founded in 1955 whose portfolio includes 14 hotels, four restaurants, five event facilities and a catering company.
Its hotels include Fairfield Inn & Suites by Marriott New Bedford, TownePlace Suites by Marriott Fall River Westport, TownPlace Suites by Marriott Wareham, Merrill’s on the Waterfront and White’s of Westport.
Elmwater Landing will include 15 one-bedroom apartments and four two-bedroom apartments, said Jeff Pineault, chief financial officer of Lafrance Hospitality.
Apartments in downtown New Bedford are rented at market rate
They will be rented at market rates. Rent for one-bedroom apartments would be estimated at $1,800 per month, according to the city’s Tax Increment Financing Board. Rent for a two-bedroom apartment was estimated at $2,300.
Sean Lafrance, facilities manager at Lafrance Hospitality, said Elmwater Landing will resemble the residential portion of the company’s 18 & Union project on lower Union Street, which will include 28 apartments and was recently completed.
“We recently completed a project on Union Street where we renovated three historically significant buildings, the National Club and the Beckman Building, into 28 residential units,” Lafrance said during a recent meeting with the City Council’s Ordinance Committee.
Tax agreement approved by the city
The council then approved a tax increase exemption agreement with Franklin Hospitality Corp., sponsored by Mayor Jon Mitchell.
This will reduce the company’s taxes by a total of $146,739 over the 10-year contract period. The project will still generate over $400,000 in taxes for the city over that 10-year period, and $60,000 per year after the contract expires.
Joshua Amaral, director of the city’s Department of Housing and Community Development, said it’s a relatively small amount for the developer, but approval of the tax deal qualifies the developer to apply for state tax credits that support housing construction.
“We want them to get approval for the agreement so they can apply for these tax credits to make the financing for this project work,” Amaral said during the meeting with city councilors.
Renovating an expensive building
Renovating the building is relatively expensive, he said, adding that the cost per unit is about $440,000.
“To carry out this development, some support is needed and we do not believe the project will work without it. We have worked hand in hand with them to prepare this agreement and move their project forward,” Amaral told councillors.
Half of the 28 apartments in the nearby 18 and Union project have already been leased, but marketing efforts are still in their early stages, Lafrance said.
Some sidewalk and related work around the $15 million project site is still being completed, he added.
The units are divided into one and two bedroom apartments and include five affordable housing units.
Upscale Mexican restaurant, part of 18 and Union
The Beckman Building, which consists of two buildings, has 26 residential units, with two additional units being offered on the top floor of the National Club, the former bar at 24 Union Street that is being converted into an upscale Mexican restaurant by Servedwell Hospitality and leased to Lafrance Hospitality.
Servedwell venues include The Black Whale, Cisco and Sail Loft.
Servedwell owner Steve Silverstein said work on the new restaurant, which will also be called the National Club, will begin in a few weeks. Completion is scheduled for spring 2025, Silverstein said.
No plans for changes to the neighboring building
Franklin Hospitality Corp. also purchased the building at 38 Bethel Street, which borders the rear of 89 N. Water Street, for $1,975,000 on Jan. 30. Built in 1880, it houses the New Bedford Fishing Heritage Center and a half-dozen other tenants.
Lafrance said no changes are planned to the current use of the building.
