165 Front St 570 Unit Apartment Building $15,500,000 ($27,193/Unit) Chicopee, MA 01013

SCOPE Commercial Real Estate Services, LLC (“SCOPE”) is pleased to exclusively present for sale 165 Front St Chicopee, MA. This prime property, in the best location in Chicopee, offers a unique opportunity for investors seeking a transformative multifamily redevelopment project.
The property consists of 7 existing buildings totaling approximately 690,000 square feet on a 14-acre site with excellent visibility from I-395 in the heart of downtown Chicopee. The site includes separate parcels of surface parking (620 spaces), a billboard, and two existing cell tower leases, providing additional revenue streams.
Over the past four years, the current ownership has created significant value by securing entitlements for up to 600 residential units and 90,000 square feet of storage space. Although the permits need renewal, the groundwork has been laid for a transformative development. Full building plans for Phase 1 have been developed, encompassing residential units, storage facilities, and a range of amenities. The building commissioner has confirmed readiness to issue a building permit upon receipt of a Certificate of Insurance (COI) from a general contractor.
This project comes with remarkable financial incentives, including a 15-year Tax Increment Exemption (TIE) and preliminary approval for Housing Development Incentive Program (HDIP) tax credits of up to $2 million per phase. To date, $3.1 million in Massachusetts Housing Credits (MHC) have been secured, with the potential for additional credits. Furthermore, the project has received Part 2 approval from the National Park Service (NPS) for federal tax credits amounting to 20% of qualified expenditures. Lastly, there is preliminary approval for energy efficient rebates projected to total $400,000. In total, the project qualifies for approximately $34 million in tax credits, with anticipated awards closer to $27 million.
This multifamily redevelopment project represents a unique and lucrative investment opportunity in a prime downtown location. With comprehensive development plans, ready-to-launch Phase 1, and substantial financial incentives, this project is poised for success. Don't miss the chance to be part of this transformative development in Chicopee.
Springfield's multifamily market remains robust with a vacancy rate of 2.4% as of the first quarter of 2025. No new multifamily units are under construction, and there have been no new construction starts since the third quarter of 2023. For 4- & 5-Star units, average rents are $2,130, in line with the U.S. average of $2,150 per month. Limited new supply has ensured that annual rental growth, at 2.7%, has outpaced the U.S. average of 1.0%.