A long-vacant gap on Union Street in downtown New Bedford is finally headed for a major comeback. One Circle Co. plans a 42,000-square-foot mixed-use building at 193-197 Union Street that will bring 45 apartments over street-level retail, replacing what locals have known for years as the old Keystone site. Construction is scheduled to start in March 2026, with a target finish by summer 2027, and the project is being framed as one more piece of downtown’s broader revitalization, as per MassDevelopment.
What’s planned
Union Street Member LLC, an entity affiliated with Boston-based One Circle Co., is set to build a six-story, 42,000-square-foot structure with 45 residential units and ground-floor commercial space, according to MassDevelopment. ConnectCRE reports that MassDevelopment has also approved a $3,212,750 bridge loan to Union Street Member LLC to help jump-start construction. The developer says the building is designed to energize a prominent block and funnel new customers to nearby businesses.
Funding and approvals
The project appears in the state Housing Development Incentive Program’s FY25 certification as a 45-unit development with 36 market-rate units, according to a report from the Massachusetts Legislature. At the city level, New Bedford’s Community Preservation Committee recommended a $59,553 CPA award and described support for nine community housing units restricted to households at or below 80% of area median income in its funding memo to the City Council, as outlined in a document from the City of New Bedford. Those state and local incentives, together with planned tax-exemption tools, make up the backbone of the project’s financing stack.
Site history and local context
The 193-197 Union Street parcel has been empty since 2004, when the Keystone Building was demolished after a roof collapse. In recent years the fenced lot became more than just an eyesore, serving as the canvas for a prominent Black Lives Matter mural. MassDevelopment and city officials have pitched the site’s sale and new funding as part of downtown’s ongoing renaissance, and the state agency says the mural will be removed and preserved before construction begins, according to MassDevelopment. The block sits just steps from cultural institutions and college programs that local leaders say will help support fresh foot traffic and new retail demand.
Next steps and reaction
One Circle has said it plans pop-up community events at the site as it moves toward its March 2026 groundbreaking and a projected summer 2027 completion, a timeline noted by The New Bedford Light. City housing officials have largely welcomed the infill project, while some local advocates caution that the emphasis on market-rate units could limit affordability downtown. For now, the Keystone lot’s reinvention will be watched closely as a test of how public incentives and private development intersect to reshape the heart of New Bedford.
