The historic Lowney Chocolate Factory is being redeveloped into a 130-unit mixed-income, mixed-use property in Mansfield, Mass.
The project took a step forward when CBRE Affordable Housing arranged permanent funding for the transaction.
Jim Flinn, senior vice president of CBRE Affordable Housing’s debt and structured finance team, and Todd Trehubenko, senior vice president of CBRE Capital Markets, secured a term commitment of $26.7 million from Freddie Mac to provide ongoing financing to the developer once construction is complete and the project stabilizes. The 10-year fixed rate loan includes two years of interest-only payments and eliminates interest rate risk and volatility for the developer during the multi-year construction period of the project.
“The valued partnership between CBRE Affordable Housing and Freddie Mac allowed us to close this complex transaction and maintain loan proceeds despite interest rates rising as the loan was underwritten,” Trehubenko said in a statement. “The end result will be a revitalized property, providing much-needed affordable housing for the working population and helping the City of Mansfield achieve its affordable housing goals.
Built in 1903 and last operated in 2009, the plant turnaround is being funded from multiple sources, including historic tax credits, a construction loan, and subordinate financing through MassHousing’s Workforce Opportunity Fund. . Workforce housing restrictions require that 20% of units be rented to households with incomes at or below 80% of the region’s median income.
The chocolate factory is being developed by a partnership that includes Red Leaf Development.