While commercial real estate demand in the Rhode Island area remains low relative to pre-COVID levels, developers are finding opportunities predominantly in the way of hospitality and housing. The question, however, is whether they’ll have the supplies to do so. Moreover, with interest rates on construction loans reaching above 10%, many developers are selling off or pausing projects.
Rhode Island stands as the state with the lowest volume of newly constructed housing. This problem, accelerated by strict requirements and a labor shortage, is nothing new since the state has maintained this status for several decades.
Arizona-based Fortuitous Partners is set to break ground on their Tidewater Landing project in Pawtucket. The soccer stadium comes with an anticipated $124M price tag. The state has worked to afford the developer a ~$27.5M subsidy on the project, which otherwise wouldn’t have advanced.
Walter Bronhard is planning the development of a 5-story mixed-use building in the College Hill neighborhood of Providence. The project, which still requires city approvals, would offer 25 2-bedrooms apartment units and roughly 1,000 square feet of commercial space.