WORCESTER – The Mercantile Center’s planned two-story rooftop bar and restaurant will be financed through a $4.2 million purchase and construction financing agreement with Webster Five, according to Charles “Chip” Norton, owner of 2 Mercantile LLC.
The center announced the 500-seat restaurant in December.
Under terms of the loan, Webster Five will provide the construction financing for the building core and shell and for the utility infrastructure with the tenant, Broadway Hospitality Group, Norton said in a statement.
Norton entered a 15-year lease with Broadway Hospitality Group of South Boston to build and operate the 12,600-square-foot bar and restaurant.
Broadway Hospitality is responsible for the interior work at an anticipated cost of $2.5 million.
Financing for the project was arranged by Megan Liddy and Don Mancini of the Kelleher & Sadowsky Capital Markets Group.
“We have confidence in the market and are showing our support to the local restaurant industry by providing the funding for this new restaurant,” said Don Doyle, president and CEO of Webster Five. “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 as the ideal location for this new and exciting rooftop bar and restaurant.”
Construction is expected to begin this fall and be completed by spring 2021.
“We are so pleased that Webster Five proceeded with the closing of this loan during this time so that construction on this new and exciting addition to the downtown Worcester dining scene can begin this September,” Norton said. “With the negative impact the coronavirus has had on the banking, restaurant, real estate, and numerous other industries, this is truly a positive, good news story.”
Eleven months ago the center announced it had signed a lease with Ruth’s Chris Steak House for a restaurant on the ground floor, across from the courtyard from the parking garage.
Broadway Hospitality owns Tavern in the Square, with restaurants in Shrewsbury and Northboro.
By Brian Lee