CBRE Affordable Housing has secured a $26.7 million forward commitment from Freddie Mac to provide permanent financing for The Chocolate Factory, a 130-unit property in Mansfield, Mass. 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.
Located at 150 Oakland St., the future mixed-income, mixed-use property will be less than 6 miles from the junction between interstates 95 and 495. Built in 1903 and last operated in 2009, the property is close to downtown Mansfield. Restrictions require 20 percent of units to be set aside for families with incomes at or below 80 percent of the area’s median income.
“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, in prepared remarks.
Trehubenko worked with CBRE Affordable Housing’s Debt and Structured Finance Senior Vice President Jim Flinn to provide permanent financing for the developer upon construction completion and stabilization of the project. Last month, Flinn and three of his colleagues from CBRE’s Affordable Housing team secured Freddie Mac financing for two affordable properties in Los Angeles County.
Image courtesy of CBRE