Market Basket Proposes 162 Apartments in Chelsea
The retailer's conceptual plan for its 30-acre site would add housing and retail as the city revises its affordable-unit rules.
Updated on Nov. 9, 2026 in Commercial
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Market Basket presented a conceptual proposal in September to add 162 apartments and additional retail space to its 30-acre Chelsea property. The plan calls for two mixed-use buildings with structured parking and three additional retail buildings.
Why it matters
City officials have approached nearby property owners about additional development as Chelsea changes how affordable housing is required in new projects. The shift reflects efforts to expand the local tax base to fund schools, police, and fire services.
The proposal would add 162 apartments on a 30-acre site, while Chelsea's affordable-unit requirement shifted from a flat 15% to a size-based system with a $275,000 payment-in-lieu charge per required unit. Whether the project will move forward and how the city will apply the new rules to it remains undetermined.
The players
Market Basket
A New England supermarket chain whose Chelsea property is the subject of the proposed housing and retail development.
Chelsea City Council
The local legislative body that revised the city's affordable-unit requirement and payment-in-lieu charge in June.
The details
The site sits within the West Chelsea Mixed-Use Overlay District, where rental projects must reserve 10% of units for households at 80% of area median income or 7% for households at 60%. The property is served by Chelsea commuter rail and Silver Line stops and was affected by the city's 1973 fire.
Timeline
September: Market Basket presented its conceptual development proposal.
June: Chelsea City Council replaced the 15% affordable-unit requirement.
Market Dynamics
The proposal follows Chelsea's June decision to replace its flat 15% affordable-unit requirement with a size-based system and lower the payment-in-lieu charge to $275,000 per unit. It tests how the revised framework applies to a large commercial parcel near transit.
If approved, the project would add apartments and retail to a site near Chelsea's transit stops, potentially changing traffic and service demand in the area. Residents would see the effects of the new affordable-housing rules only as projects like this move through review.
The takeaway
Mixed-use proposals near transit can reshape local neighborhoods, so following zoning changes and project filings is the most reliable way to track how Chelsea's new rules play out.
Further reading
Explore more commercial real estate coverage for context on projects like this one.
Source note: This article includes information reported by The Cool Down.
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