Second former I-195 parcel to be developed for $20M project

THE PARCEL that the I-195 Redevelopment Commission has agreed to purchase is the one in orange, on east side of the river. It will be sold and developed as a seven-story structure containing a mix of rental housing, office space and retail, under a preliminary plan announced Tuesday.  The total project cost is estimated at $20 million. / PBN PHOTO/MARY MACDONALD
THE PARCEL that the I-195 Redevelopment Commission has agreed to purchase is the one in orange, on east side of the river. It will be sold and developed as a seven-story structure containing a mix of rental housing, office space and retail, under a preliminary plan announced Tuesday. The total project cost is estimated at $20 million. / PBN PHOTO/MARY MACDONALD

(Updated 11:42 a.m.)PROVIDENCE – A second site among the former I-195 development parcels will be sold and developed as a seven-story structure containing a mix of rental housing, office space and retail, under a preliminary plan announced Tuesday.
The property is the first sale announced for the east side of the Providence River, and will be clearly visible from I-195.
The I-195 Redevelopment Commission announced following a closed-session discussion that it had voted to enter into a purchase and sale agreement for the new development with Royal Oaks Realty Ventures.
The land is known as Parcel 8, and covers about one-third of an acre at the intersection of South Main and Pike streets, a highly visible spot with access from the East Side of Providence and I-195.
Royal Oaks Realty, which owns an existing historically significant building on an adjoining property, plans to erect a seven-story tower on the new land, with a total of 75,000 square-feet of space, including 20,000-square-feet of office space, and 4,500-square-feet of retail, and 45 to 50 rental apartments.
The new building will link to the developer’s existing property at 39 Pike St.
The total cost of the Parcel 8 development is estimated at $20 million. The purchase price for the .30-acre site is about $750,000, said commission chairman Colin Kane. The commission estimated the development will generate 150 construction jobs, and could lead to 60 to 80 full-time jobs in retail, and residences for 90 people.
Negotiations with Royal Oaks Realty began in May, Kane said.
Design work is in the early stages, but the site plan and materials will take into account surrounding buildings, according to a news release.
The property will include views of the harbor and east-facing views of College Hill. Construction is expected to begin later in 2015, following a review of the site and structure by the I-195 Commission.
Richard Baccari II, the principal of Royal Oaks Realty LLC, could not be reached Wednesday for immediate comment. In a statement released Tuesday, he said he hoped to become the first developer to break ground along the former I-195 lands.
“It is critical to our economy that a private development project breaks ground in Providence,” he said. “New ground up projects will demonstrate to other businesses around the region that the RI economy is improving and that the state of Rhode Island and the city of Providence have created a pro-business and pro-development atmosphere to help facilitate new business growth with the 195 Commission.”
Royal Oaks Realty is a real estate development company formed by Baccari in 2011, according to the commission. Baccari has developed several commercial and residential projects over the past 15 years, including the Kettle Point project in East Providence. He is also vice president of development at Churchill & Banks LLC, a real estate development and management company.
In November 2014, Baccari entered into exclusive negotiations with the commission for Parcel 8, signing a nonbinding letter of intent at that time. He had previously described the project as potentially hosting a supermarket as part of the ground-level retail.

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