Developer WinnCompanies has purchased The Tannery, a 284-unit affordable housing community in Peabody, Mass. MassHousing provided $49.3 million in affordable housing financing to the buyer to rehabilitate the property and preserve its affordability for low-income households for at least 45 years.
Located at 18 Crowninshield St., the former industrial leather tanning complex encompasses three residential buildings in downtown, a city in Essex County northeast of Boston. The property contains 20 studio apartments, 234 one-bedroom apartments and 30 two-bedroom apartments and is being managed by WinnResidential.
WinnCompanies purchased the property through Chapter 40T, a state law designed to prevent publicly assisted affordable housing from being converted to market-rate rents. The financing package provided by MassHousing includes a $28.3 million construction and permanent mortgage, $17 million in bridge loan financing and $4 million in Section 13A preservation and tenant protection financing.
Rents that don’t break the bank
Eighty-four of the 284 apartments will be subsidized through the Massachusetts Rental Voucher Program, and 49 will be rented at market rates. Of the remainder, 116 apartments will be affordable for households earning no more than 60 percent of the Area Median Income (AMI) and 35 will be affordable for those earning no more than 80 percent. The AMI for a family of four in Peabody is $113,300.
WinnCompanies, which has 100,000 units under management nationwide, said it would announce plans for the renovation of the property later this month.