First phase of major redevelopment will transform surplus state property into new housing while supporting Salem State University’s campus modernization
SALEM- October 2, 2026 – PRESS RELEASE – Today, Lieutenant Governor Kim Driscoll joined state and local officials and development partners Vivmark Residential (formally Avalon Bay Community, Inc.) and WinnDevelopment at Salem State University to celebrate the groundbreaking for nearly 500 new homes to be built on the surplus South Campus.
The redevelopment will transform approximately 23 acres of surplus state-owned land along Harrison Road and Loring Avenue into 473 new rental homes over two phases. The project is part of the Healey-Driscoll Administration’s State Land for Homes initiative, which is accelerating the development of surplus and underutilized public property into new housing across Massachusetts.
“Today’s groundbreaking is another important step in our work to build more homes and lower housing costs across Massachusetts,” said Governor Maura Healey. “We’re putting state-owned land to work to create nearly 500 new homes in Salem while supporting the future of Salem State. This is exactly the kind of partnership we need to build the housing our communities need and make Massachusetts more affordable.”
“This groundbreaking represents exactly what our State Land for Homes initiative is designed to accomplish — taking state property that is no longer needed for its original purpose and putting it to work creating homes,” said Lieutenant Governor Kim Driscoll. “As a former mayor of Salem and a proud Salem State alum, I know what this campus means to the community. This redevelopment will create hundreds of new homes, support Salem State’s future and make productive use of land that has served generations of students.”
The first phase of development, Avalon Salem, will create 340 new rental homes, 20 percent of which will be made available to households with incomes at or below 80 percent Area Median Income (AMI) and at or below 60 percent AMI. Construction is anticipated to begin this Winter.
The second phase, WinnDevelopment’s Forest River Residences, will bring at least 133 additional homes to the former South Campus. A minimum of 40 percent of those units will be made available affordable to households with incomes at or below 60 percent AMI, and this phase is expected to close in 2028. More information can also be found on the project page.
“Our State Land for Homes initiative is an innovative tool for turning underused public land across Massachusetts into much needed housing,” said Housing and Livable Communities Secretary Juana Matias. “Here in Salem, that means nearly 500 new homes, including affordable options for individuals and families who otherwise might be priced out. The Healey-Driscoll Administration is using every tool available to build more housing, lower costs and give more people the opportunity to stay in the communities they love.”
The redevelopment also advances Salem State University’s efforts to modernize its campus. Proceeds from the sale of the South Campus property will support major capital investments on Salem State’s North Campus as part of SSU BOLD, the university’s long-term effort to consolidate its footprint, and address campus infrastructure needs.
“Today’s event marks another exciting day for Salem State University, and an exciting day for the city of Salem and the Commonwealth of Massachusetts,” said Salem State University President John Keenan. “With the help of our partners at DCAMM and with the leadership and support of the Massachusetts legislature, we are the first public campus in the state to surplus a major parcel, allowing the city of Salem to meet its housing needs while also allowing the university to reinvest the sale proceeds in more strategic and much-needed campus infrastructure projects.”
“This project is a fantastic example of a thoughtful strategic partnership that aligns multiple state, local, and campus priorities,” said DCAMM Commissioner Adam Baacke. “As a significant component of the State Land for Homes Initiative, it will produce much needed housing for the region in addition to saving on operating expenses for the university, reducing the Commonwealth’s climate impacts, and reinvesting in teaching and learning facilities all while decarbonization the main campus.”
“Getting started on Avalon Salem marks an exciting milestone — not just for our development team, but for everyone who helped make this possible,” said Senior Vice President of Development at Vivmark Residential, David Gillespie. “This community is a testament to what strong partnerships can achieve, and we can’t wait to bring these first 340 apartment homes to life in one of the North Shore’s most vibrant cities.”
“The redevelopment of Salem State’s South Campus, and the partnerships that made it possible, show that the Healey-Driscoll Administration’s strategy of repurposing underutilized public property is a powerful tool for meeting the need for quality, affordable housing.” said WinnDevelopment President Adam Stein.
The South Campus redevelopment is part of the Governor Healey’s broader strategy to tackle the housing shortage, lower costs and create more homes in communities across Massachusetts. Through historic housing investments, new tools to support local production and initiatives like State Land for Homes, the administration is working to unlock housing opportunities wherever possible. In its first year, State Land for Homes has already advanced plans for more than 5,600 new homes by putting surplus and underutilized public property to work. More information on the impact of these housing investments can also be seen in the newly launched Capital Report.
The project also follows another recent state and local partnership to unlock housing and preserve historic properties in Salem. In August 2026, DCAMM and the Salem Redevelopment Authority closed on the sale of the former Salem Superior Court and County Commissioners buildings at 32-34 Federal Street to WinnDevelopment. The redevelopment will revitalize the historic buildings while repurposing them for new uses.
The courthouse redevelopment also leverages The Exchange, WinnDevelopment’s 115-unit mixed-income housing development across the street on the former Crescent Lot. The SRA strategically engineered the larger housing development opportunity to complement the reuse of the historic courthouse properties, demonstrating how cooperation among state and local officials and their private partners can result in complementary housing, community development, and historic preservation benefits.
Since taking office, the Healey-Driscoll Administration has made increasing housing production and lowering housing costs a top priority. Governor Healey signed the $5.16 billion Affordable Homes Act, the largest housing bond bill in state history, and released Massachusetts’ first statewide housing plan, which sets a goal of creating 222,000 homes by 2035. Massachusetts added more than 34,500 new homes in 2025, and the administration continues to advance new housing through investments in affordable and public housing, accessory dwelling units, commercial conversions, transit-oriented development and other tools to help communities build more homes.
