MassDevelopment has issued a $19.6-million tax exempt bond on behalf of 120 Washington 4 LLC, an affiliate of Boston Capital Development, LLC. The real estate development and planning firm will use proceeds to construct 59 units of mixed-income affordable rental housing at the site of the 1924-2023 headquarters of Table Talk Pies at 120 Washington Street in Worcester, MA.

Eastern Bank and Rockland Trust purchased the bond, which helped Boston Capital Development, LLC achieve a lower cost of capital.

The project is part of the larger mixed-use redevelopment of the four-acre site that will include a total of 400-plus residential housing units and 20,000 square feet of commercial space. Construction is underway and is expected to be complete in February 2024.

Boston Capital Development, LLC will construct a unit mix of six studios, 28 one-bedroom, 44 two-bedroom and five three-bedroom apartments. In addition to the 59 units supported by MassDevelopment bond financing, 24 additional units will be financed with an allocation of Low Income Housing Tax Credits, additional subsidies from the Department of Housing and Community Development, and conventional bank financing. Additionally, in October 2022, the Baker-Polito Administration awarded a $400,000 grant from MassDevelopment’s Underutilized Properties Program to help Boston Capital Development, LLC advance a portion of the larger project at 120 Washington St.