Speaker Shekarchi, state, local leaders announce historic rehabilitation of Providence’s Industrial Trust Building

House Speaker K. Joseph Shekarchi joined Governor Dan McKee and state, local and federal leaders, the Rhode Island Foundation, and the High Rock Development team today to announce a historic rehabilitation of Providence’s Industrial Trust Building, commonly referred to as the “Superman Building.”

The $220 million project announced today will convert the long-vacant, yet iconic, tower into 285 residential apartments, 20 percent of which will be affordable to low- and moderate-income Rhode Islanders, 8,000 square feet of commercial office space, and a mix of retail, event, and community uses in the 26,000-square foot banking hall.

Today’s historic announcement is possible because of collaboration between the State of Rhode Island guided by the Executive Office of Commerce, the City of Providence, Rhode Island Housing, the Rhode Island Foundation, and the project’s development team led by the building’s owner, David Sweetser, and Zachary Darrow of Darrow Everett, LLP. Commerce Secretary Stefan Pryor led the negotiations on behalf of the McKee Administration.

“I am extremely pleased that a deal has been finalized to ensure this downtown Providence landmark will be re-opened to a mix of housing and commercial space,” said Speaker Shekarchi. “Since becoming Speaker last year, my top priority has been on increasing housing opportunities for Rhode Islanders, and the addition of nearly 300 residential units is exciting news. I am also happy this deal was reached without a commitment of any additional state funding beyond the existing programs.”

“We have finally met a moment both economically and politically where everyone has come together to find a solution to repurpose this historic building in a manner where it will again contribute to Rhode Island’s economy and provide much needed housing for Rhode Islanders,” said David Sweetser, principal, High Rock Development. “All told, the redeveloped ‘Superman Building’ will create 285 residential units – 20 percent of which will be dedicated to affordable housing. The building will also create hundreds of construction jobs and be a community gathering point for the residents of Providence and the great State of Rhode Island.”

Expected sources of financing include:

• High Rock Capital has committed to providing over $42 million towards the project which includes up to $32 million in cash equity, as well as the land and building.
• $26 million in contributions from the State’s existing housing and economic development programs (this is 45 percent less than the developer’s recent financial request to the State)
• $22 million in federal Historic Tax Credits
• $10 million in a loan through the City of Providence Housing Trust through the Providence Redevelopment Agency
• $5 million in a direct contribution from the City of Providence
• $2 million in federal New Markets Tax Credit proceeds
• The Developer intends to seek a Tax Stabilization Agreement from the City of Providence.
• The Rhode Island Foundation is providing bridge financing for the Rebuild Rhode Island Tax Credits which reduces the project’s financing costs.

The rehabilitation and conversion of the Industrial Trust Building will lead to almost 1,600 direct construction jobs throughout the project. It is anticipated the project will involve a project labor agreement, ensuring a prevailing wage for construction workers. The developer has committed to recruiting local minority- and women-owned construction firms (MBE/WBE) and ensuring that its general contractor utilizes best efforts to achieve 20 percent MBE/WBE participation in the project. Additionally, as an early signal of partnership with the community, High Rock Capital shared that they have also committed to making a charitable contribution to Crossroads Rhode Island, totaling $500,000 and payable over a 10-year period in the years following completion of the project.

The revitalization of this iconic building is expected to bring added vibrancy to downtown Providence, with hundreds more Rhode Islanders living in the downtown district.

Various state and city funding contributions will need approval from entities including the Commerce Corporation, Rhode Island Housing, the Providence Redevelopment Agency, and the Providence City Council. We expect those processes to begin in the coming weeks.