Transformative bricks and sticks : boosting commercial and mixed-use rehabilitation projects in TDI districts

Abstract

MassDevelopment's Transformative Development Initiative (TDI) has brought coordination, local capacity building and in some cases, added investment to Gateway Cities struggling to bring investment into their cores. However, real estate development in weak markets remains fundamentally challenging, with each project requiring substantial development expertise and political support to cobble together a complex stack of public and private capital. Existing knowledge on the community development ecosystem suggests that commercial and mixed-use projects that rehabilitate existing buildings can be the most challenging to implement due to capital intensiveness and risk. These projects can often also deliver significant place-making and economic development benefits. This client-based thesis seeks to consider the role that state equity investments could play across different project types. After considering the policy and political context of TDI, this thesis will use the Brockton context as a lens for recommending an alternative strategy-the "condo approach"- for MassDevelopment to deploy its TDI Equity Investment funds. Client-based learning, market research, stakeholder interviews, and financial modeling help to inform this strategy.