Downtown New Bedford building going from hamburgers to housing. What to know.

NEW BEDFORD — A downtown building that last housed a craft burger restaurant is being converted into apartments.

The close to $8 million rehabilitation project to develop 19 apartments at 89 N. Water St. is scheduled to begin construction this fall and be completed next fall.

The four-story brick building at the corner of Elm Street, which was previously the home of dNB Burgers, was purchased by Franklin Hospitality Corp. for $1.7 million in June 2023. The building has been vacant for a few years.

The development will be known as Elmwater Landing.

Franklin Hospitality Corp. affiliated with Lafrance Hospitality

Franklin Hospitality Corp. is closely affiliated with Lafrance Hospitality of Westport, a three-generation family business started in 1955 with a portfolio that includes 14 hotels, four restaurants, five function facilities and a catering company.

Its properties 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 feature 15 one-bedroom apartments and four two-bedroom apartments, said Jeff Pineault, Lafrance Hospitality chief financial officer.

Downtown New Bedford apartments to be rented at market rate

They will be rented at market rates. The one-bedroom units would rent for an estimated $1,800 per month, according to the city Tax Increment Financing Board. A two-bedroom unit's rent was estimated at $2,300.

Sean Lafrance, Lafrance Hospitality director of facilities, said Elmwater Landing would be similar to the residential component of the company's 18 & Union project on lower Union Street, where 28 apartments are being developed. It was recently completed.

"We recently completed a project on Union Street where we rehabbed three historically significant buildings, the National Club and the Beckman Building to 28 residential units," Lafrance said during a recent meeting with the City Council's ordinance committee.

Tax agreement appoved by the city

The council subsequently approved a Tax Increment Exemption Agreement, supported by Mayor Jon Mitchell, with Franklin Hospitality Corp.

That will reduce the company's taxes by a total of $146,739 over the 10-year agreement period. The development will still generate over $400,000 in taxes for the city over that 10-year period, and $60,000 per year after the agreement period.

Joshua Amaral, director of the city Office of Housing and Community Development, said it was a relatively marginal sum for the developer. However, the tax agreement's approval qualifies the developer to apply for state tax credits that support housing development.

"We want to get them the agreement approval so they can go and seek those tax credits to make their financing work for this project," Amaral said during the meeting with city councilors.

An expensive building to rehabilitate

It's a relatively expensive building to renovate, he said, adding it will cost about $440,000 per unit.

"To do that development requires some assistance, and we don't think it's a project that works without it. We've worked hand in hand with them to prepare this agreement to move their project forward," Amaral told councilors.

Half of the nearby 18 and Union project's 28 apartments are already rented, though marketing efforts are just starting up, Lafrance said.

Some sidewalk and related work around the $15 million project site is still being completed, he added.

The units are split between one- and two-bedrooms, and include five affordable housing units.

Upscale Mexican restaurant part of 18 and Union

The Beckman Building, which includes two structures, has 26 units. Two additional units will be offered on the top floor of the National Club, the former bar at 24 Union St., which is being rehabilitated into an upscale Mexican restaurant by Servedwell Hospitality under lease to Lafrance Hospitality.

Servedwell's 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. It's scheduled to be completed in spring 2025, Silverstein said.

No plans for changes at nearby building

Franklin Hospitality Corp. also bought the building at 38 Bethel St., which abuts the rear of 89 N. Water St., for $1,975,000 on Jan. 30. It was built in 1880, and is the site of the New Bedford Fishing Heritage Center and another half dozen tenants.

Lafrance said there were no changes planned in that building's current use.

This article originally appeared on Standard-Times: Downtown New Bedford building going from hamburgers to housing. What to know.