The historic Lowney Chocolate factory is being redeveloped into a 130-unit mixed-income and mixed-use property in Mansfield, Mass.
The project took a step forward when CBRE Affordable Housing arranged permanent financing for the deal.
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 $26.7 million forward commitment from Freddie Mac to provide permanent financing for the developer upon construction completion and stabilization of the project. 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 project’s multi-year construction period.
“The valuable partnership between CBRE Affordable Housing and Freddie Mac allowed us to close this complex transaction and maintain loan proceeds despite increasing interest rates during the underwriting of the loan,” said Trehubenko in a statement. “The end result will be a revitalized property—bringing much-needed affordable housing to the workforce population and assisting the town of Mansfield in meeting its affordable housing goals.”
Built in 1903 and last operated in 2009, the factory’s turnaround is being financed by multiple sources, including historic tax credits, a construction loan, and subordinate financing through MassHousing’s Workforce Opportunity Fund. The workforce housing restrictions require 20% of the units to be rented to households with incomes at or below 80% of the area median income.
The Chocolate Factory is being developed by a partnership that includes Red Leaf Development.