Demoulas Proposed Apartments for Chelsea Site

The grocery chain has unveiled plans for a major mixed-use residential project in the city.

Updated on Oct. 7, 2026 in Commercial

Bold vector editorial illustration showing a modern brick and glass mixed-use apartment building with ground-floor commercial space in an urban setting. — Demoulas Super Markets has filed a proposal to build 162 apartments and new retail space on their property in Chelsea, Massachusetts. AI Illustration. Upload story photo >

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Demoulas Super Markets has proposed constructing two mixed-use buildings featuring 162 apartments on its retail property near the Chelsea-Everett line. The development aims to leverage recent city zoning updates to address housing demand while expanding the site.

Why it matters

The proposal aligns with city efforts to increase local tax revenue and meet resident housing demand by modernizing land use regulations. By facilitating higher-density developments, the city hopes to transform underutilized commercial zones into active, residential hubs.

The proposed site allows for buildings up to 12 stories or 150 feet in height with a floor-area ratio of 7.0. Developers may satisfy inclusionary zoning requirements by reserving 10 percent of units for 80 percent AMI households or 7 percent for 60 percent AMI.

The players

Demoulas Super Markets

This family-owned company operates the Market Basket grocery chain and owns the retail plaza near the Chelsea-Everett line.

City of Chelsea

This municipal government has recently updated its zoning policies to stimulate residential development and increase local tax revenue.

The details

The project includes three new retail outbuildings alongside the residential units on land currently serving as a retail plaza. Chelsea officials adopted the new zoning in June to remove parking minimums and increase height limits, aiming to improve project feasibility.

June saw the city adopt new zoning for the area.
October 9, 2026 marks the opening of a new MB Spirits liquor store on the site.

Culture Shift

This proposal reflects a broader movement toward transit-oriented, mixed-use development in urban commercial zones. It marks a transition away from outdated, auto-centric retail site configurations toward higher-density housing that addresses acute local residential shortages.

Residents may see a significant increase in housing availability and neighborhood activity near the retail plaza. The project could eventually lower the barrier to home-building costs by utilizing the city's new reduced inclusionary zoning requirements.

The takeaway

The plan signals a shift in how legacy retail operators utilize their existing real estate footprints to remain viable in changing markets. Homeowners and renters should monitor how future tax abatement agreements influence the final affordability of the proposed units.