WORCESTER, Mass. - With the Menkiti Group planning to begin construction at the site of the Denholm Building next year, one of the company’s top decision-makers is shedding some light on its larger vision for Worcester.

Mike McElaney, vice president of commercial real estate for the Menkiti Group, said Worcester fits much of the criteria the developer seeks out in a city.

“Worcester has got a ton momentum to it,” McElaney said. “There's a lot of positive things from business, from government, from philanthropy, and cultural entertainment. There's just a lot of good things happening in Worcester right now.”

The Menkiti Group is planning to demolish the Denholm Building, and in its place will construct 233 apartments and 10,000 square feet of retail space.

During a roundtable discussion hosted by the Worcester Regional Chamber of Commerce on Tuesday, McElaney said the Menkiti Group has been "quietly building a portfolio of assets in Worcester." They own four properties on Main Street, as well as the Chatham Lofts.

They’ve taken a particular focus on purchasing older properties like the Denholm Building, as well as a former Main Street pawn shop. McElaney said the Menkiti Group embraces the logistical and financial challenges of these sites, which can sometimes be a barrier for developers.

Joshua Lee Smith, a partner at Bowditch & Dewey specializing in real estate, said parking can often be at the top of that long list of challenges.

“That site is relatively tight, and they're looking to develop that site in a way that will provide pretty sufficient robust density in terms of the number of residential units,” Smith said. “Part of the challenge on a site like that involves parking. I think that's one of the top questions that not only the city staff will have as he goes through the entitlement process, but I think the neighborhood will as well.”

Smith also said Worcester’s inclusionary zoning rules, which require a certain number of units in a residential project to be affordable, have scared off some developers.

Twenty percent of the Denholm project’s apartments will be affordable, which exceeds the city’s minimum. McElaney said keeping in line with those standards isn’t an much of an issue for the Menkiti Group.

“The idea of providing mixed income housing is something that's important to us from a mission perspective,” McElaney said. “Working that into our projects is something that is part of the conversation from the very beginning. So it's part of our investment philosophy, it's part of our performance, and we underwrite to that early on so that we can try to guide projects that pencil out and get under construction, accounting for that affordable component.”

Construction on the Menkiti Group’s Denholm project is expected to be completed by 2027.