Mercantile Center secures $4.2M deal for rooftop restaurant, construction to start in fall
Image | Courtesy | Broadway Hospitality
A two-story restaurant fills a space next to the Mercantile Center garage, leased by the Broadway Hospitality Group.
Photo | Grant Welker
The space slated for a restaurant from the Broadway Hospitality Group has been a vacant part of the Mercantile Center while much of the rest of the former mall site has been brought to new use.
Funding has been secured for work on 2 Mercantile Street, part of Mercantile Center, where Broadway Hospitality Group of Boston, the company behind the restaurant chain Tavern in the Square, is on deck to build and operate a 12,600 square-foot, two-story rooftop bar and restaurant, according to a Monday press release.
A $4.2-million purchase-and-financing agreement was established between Webster Five Bank and 2 Mercantile LLC, a limited liability corporation owned by developer Charles “Chip” Norton, who owns the building. Under the terms of the loan, Webster Five is providing construction financing for the building’s core and shell, as well as for utility infrastructure with the tenant, according to a press release.
In December, BHG entered 15-year lease with Norton to operate a restaurant in the space. BHG will be responsible for inside renovations, which are expected to cost $2.5 million, according to the announcement.
“We are aware that the industry is facing many difficulties in the face of the COVID-19 pandemic, but we believe that this restaurant will be a success for the Mercantile Center and a wonderful addition to the Worcester restaurant scene,” Don Doyle, president and CEO of Webster Five, said in a statement. “We regard the Mercantile Center as the ideal location for this new and exciting rooftop bar and restaurant.”
A project groundbreaking will take place in fall, with project completion slated for spring.
Project financing was arranged by Meghan Liddy and Don Mancini of The Kelleher & Sadowsky Capital Markets Group in Worcester.
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