$2.9M Cooks Up New Restaurant for Andover
MassDevelopment, M&T Bank Partner to Help Local Businessman Elmer Melendez Expand Bandoleros Mexican Grill with Third Location
December 09, 2025
Kiara Ford, 978-844-1380
kford@massdevelopment.com
ANDOVER, Mass. – MassDevelopment has partnered with M&T Bank to provide $2,930,000 in loan financing to 429 S Main St LLC, a single purpose entity created by local businessman Elmer Melendez. Mr. Melendez used loan proceeds to buy a building located at 429 South Main St. in Andover, where he has opened a new Mexican restaurant, Bandoleros Mexican Grill. The restaurant officially opened on October 28, occupying a previously vacant former restaurant space. The project is expected to create 25 full-time jobs and 15 part-time jobs. Mr. Melendez currently owns and operates four additional restaurants in Massachusetts, including two Bandoleros Mexican Grill locations (one in Concord and one in Devens), as well as Dario’s on Main and Tacos Tequilas Mexican Cocina in Fitchburg. M&T Bank provided a $1,600,000 first mortgage loan to the borrower, while MassDevelopment provided a $1,330,000 second mortgage loan.
“The Healey-Driscoll Administration is committed to empowering small businesses to succeed and grow here in Massachusetts,” said Economic Development Secretary Eric Paley, who serves as chair of MassDevelopment’s Board of Directors. “We are glad to see MassDevelopment and M&T Bank partner to create financial opportunity for a local restauranteur as he expands to Andover and creates dozens of new jobs within the community.”
“Elmer Melendez’s dedication to creating high-quality food and dining experiences has brought communities together in Concord, Devens, and Fitchburg,” said MassDevelopment President and CEO Navjeet Bal. “MassDevelopment is pleased to partner with M&T Bank to help this entrepreneur expand his network of restaurants, breathe life back to a vacant building in Andover, and bring more jobs and delicious cuisine to our state.”
“This is such an important location for the community and we are excited that Mr. Melendez selected this part of Andover to open his newest location for Bandoleros,” said Andover Town Manager Andrew Flanagan. “This location has served as anchor business for the south part of Andover and we are grateful, that with the support of MassDevelopment, it will meet the demand for this area. Bandoleros is already thriving and I know the community is excited to support it moving forward.”
"M&T Bank is proud to partner with MassDevelopment to drive meaningful business investment. We are deeply committed to serving and supporting people, like Elmer Melendez, and small businesses of the Commonwealth to help build stronger, more resilient communities where everyone has the opportunity to thrive,” said Jeff Carpenter, M&T Bank’s Interim Regional President in Massachusetts. “M&T supports business owners at every stage on their pathway to success, whether it’s launching a new venture or growing an existing one.”
Mr. Melendez , who is originally from El Salvador, has been in the restaurant and hospitality business for more than 25 years. He worked his way up from dishwasher and line cook to successful business owner and entrepreneur. This is MassDevelopment’s second loan for Mr. Melendez; in 2024, the agency provided an $800,000 loan, also in partnership with M&T Bank, to help Mr. Melendez buy the Bandoleros Mexican Grill property in Devens that he had leased and operated for several years.
“MassDevelopment and M&T Bank together have been incredible partners for our community and for people like me—an immigrant entrepreneur building a dream,” said Elmer Melendez. “With their support in tandem, they've made it possible for us to acquire new properties and really thrive. It’s a testament to how both organizations open doors for everyone, making a real difference in our neighborhoods."
MassDevelopment, the state’s development finance agency and land bank, delivers financing solutions, real estate expertise, and other assistance to strengthen and grow the Massachusetts economy. We partner with businesses, nonprofits, developers, banks, and municipalities, providing resources to help create jobs, build housing, and foster vibrant communities across the state. During FY2025, MassDevelopment financed or managed 409 projects generating investment of more than $4.65 billion in the Massachusetts economy. These projects are estimated to create or support 25,246 jobs and build or preserve 2,867 housing units.