Red Leaf Development secured a $26.7m forward-commitment loan from Freddie Mac for the redevelopment of the historic Lowney Chocolate factory in Mansfield, Massachusetts. The 10-year fixed-rate loan includes two years of interest-only payments. The developer will also use Historic Tax Credits and subordinate financing through MassHousing’s Workforce Opportunity Fund. The workforce housing restrictions require 20 percent of the units to be rented to households with incomes at or below 80 percent of the area’s median income level. Built in 1903 and last operated in 2009, the facility will include 130 units along with retail sites. CBRE Affordable Housing arranged financing for the deal.
“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. 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,” said Todd Trehubenko, senior vice president of CBRE Capital Markets.
