One Circle Co. plans to transform the vacant lot that was once home to New Bedford’s Keystone building into a 42,000-square-foot mixed-use development with 45 market-rate residential units and several ground-floor commercial spaces.

MassDevelopment sold the New Bedford property and provided a bridge loan to the purchaser.

“We are so glad to see One Circle Co. turn the page on the former Keystone site, transforming a long-vacant parcel into new housing and commercial space for downtown New Bedford,” said Economic Development Secretary and Chair of MassDevelopment’s Board of Directors Eric Paley in a press release. “Projects like this show what is possible when public and private partners work together to bring new life to important sites in our communities.”

This revitalization has been a long time in the making. The 1860s-era Keystone building housed a furniture store from 1914 to 1981 before being demolished in 2004. MassDevelopment has held the property since 2014.

Construction will begin in late March, with completion scheduled for summer 2027.

“Over the course of my 20-year career in multifamily development, no project has held more meaning for me than this one,” said One Circle Founder Lauren Jezienicki. “As a native of New Bedford, it has been both a privilege and a personal honor to collaborate with this exceptional stakeholder team in restoring the Keystone to new life. The city of New Bedford is a remarkable community, and I am grateful to play even a small role in the important and inspiring work taking place here.”