Nordblom Development Company will receive $3 million in state tax credits to build 154 rental apartments on a 3.8-acre commercial site at 110 Stergis Way in Dedham, near Legacy Place.

The Healey-Driscoll Administration announced the award on Wednesday, Aug. 26, as part of $15.3 million in Commercial Conversion Tax Credit Initiative funding for five projects statewide. The program, established through the Affordable Homes Act that Governor Healey signed in 2024, targets underused commercial properties for housing.

The project, called Vantage Apartments, will demolish two obsolete commercial buildings on the site and replace them with 154 rental homes. Of those, 131 will be market-rate units. The state described the project as "shovel-ready" and transit-oriented, within walking distance of the Dedham Corporate Center MBTA Commuter Rail station.

Lt. Gov. Kim Driscoll announced the second-round awards in Westford, at the site of the former Westford Regency Inn & Conference Center. Banker & Tradesman reported on the awards.

Burlington-based Nordblom already secured local approval for the project. The Dedham Planning Board voted 5-0 on Oct. 17, 2024, to approve a Certificate of Action for the development. That approval included a $40,000 mitigation payment for Wigwam Pond, a commitment to reduce impervious surfaces and preferential treatment for local subcontractors on contracts over $3 million.

"There has been a tremendous spirit of cooperation between the Board, Town, applicant, state representatives, and attorneys to make the Town a better place to live," Planning Board member James F. McGrail said at the October 2024 vote, according to board minutes.

The Nordblom project page shows the site sits adjacent to the 600,000-square-foot Legacy Place retail center. Planning Board review documents call for 241 parking spaces, 70 new trees, a 53% reduction in impervious surfaces and 100% native plantings near Wigwam Pond.

The Aug. 26 awards represent the program's second round. The first round awarded nearly $8.4 million for five projects creating 339 homes in Boston, Fitchburg, New Bedford, Pittsfield and Worcester. Together, both rounds will support 10 projects and 1,195 new homes across Massachusetts.

Housing and Livable Communities Secretary Juana Matias said in a statement that commercial conversion projects often struggle to secure financing, even with strong locations and local backing. The tax credit helps bridge that gap, she said.

No groundbreaking date has been set. No projected opening timeline has been publicly announced for Vantage Apartments.