LAWRENCE — Since 2005, a group of developers has had its sights set on a group of dilapidated buildings that once were part of the sprawling Malden Mills textile operation.
Sometime this fall, ground finally will be broken on a 75-unit apartment complex in two of the 11 buildings set on 11 acres of land straddling the Lawrence-Methuen line.
"We've always viewed this as a very important project for us because of the history with the Malden Mills complex," said Gilbert Winn, managing principle of Winn Development, the Boston real estate giant that put the deal together. "It's very visible in an important area of Lawrence. Using our historical knowledge of the buildings over the last five years, we are happy to bring this to a closing."
Winn said he expected a November groundbreaking on the multimillion dollar project.
Lawrence Community Development Director James Burns said the project will be a "real good anchor for the Arlington neighborhood. ... This is a great project in a great location with the opportunity to develop housing and utilize underuiltized factory buildings."
While Winn has been working on the project since 2005, it has been partnering with another company, College Street Management, since 2008. That company's president, David Nyberg, said the company plans to develop retail and office space on the site while Winn works on the residential component.
The former Malden Mills continues to operate under the name Polartec in nearby buildings built after the devastating 1995 fire that destroyed much of the complex.
The deal was made possible when the state Department of Housing and Community Development approved the low-income housing tax credits being sought by the developer. Combined with historic tax credits and other incentives, that made the deal financially feasible, Winn said.
The tax credits are sold on the open market, which enables the developer to raise capital to fund the project. Historic tax credits are similar, also adding funding to the project.
In all, the project uses $1.2 million in federal low-income housing tax credits as well as $3.5 million in state tax credits and $2.3 million in program subsidies from the Department of Housing and Community Development to produce 75 units of rental housing, 72 of which will be classified as affordable and the remaining three as market-rate. Eight of the 72 affordable units will be set aside for low-income households.
Winn said the first phase of the project encompasses 160,000 square feet of space, including a four-story building that fronts onto Broadway.
A family of four earning up to $46,000 a year will be eligible to live there. Rents will be $900 a month for a one-bedroom and $1,100 for a two-bedroom.
The units will remain rental apartments for at least 45 years, Winn said.
Nyberg said original plans for a retail mall on a vacant portion of the property remains an active possibility.
"We're excited about the possibility of a retail complex that would be aesthetically consistent with what's there now," Nyberg said, adding that the site of the old Malden Mills store may also be converted into a retail and office building. "It's such a win," he said. "Once you create a critical mass of residential property, retail and office will follow."
In the past, city officials have lauded the project as a shot in the arm to a beleaguered section of the city.
Burns, of the Community Development Department, said the project has all of the necessary city permits and approvals, as well as $500,000 in local funding.
Winn said the two buildings in the first phase of the project will contain apartments as well as common space for on-site management and leasing offices and a fitness center, laundry room, community room with kitchenette and media room for movie screenings and gatherings.
Parking will be provided on-site.
He said that Winn is negotiating to buy additional portions of the property to develop for housing.
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