Construction Financing Closed on Mixed-use Rental Homes

Springfield, MA – The City of Springfield, MassHousing, MassMutual, MGM Springfield, WinnDevelopment and Opal Real Estate Group jointly announced the closing of construction financing and the conveyance of 31 Elm St. in downtown Springfield.

When complete, the redevelopment of 31 Elm St. will fully restore the historic property, preserving historic details while adding modern building systems, and creating 74 new mixed-income apartments, 12,000sf of commercially active ground floor space, a 200-seat restaurant, a gym and community space. The residential units will be comprised of 59 market-rate units and 15 workforce housing units, which will be affordable to households making up to 80% of the Area Median Income (AMI).

There will be 49 new 1-bedroom units and 25 2-bedroom units at the property. The general contractor is Fontaine Brothers, the architect is The Architectural Team, and the management agent will be WinnResidential. Construction is expected to be completed in the Fall of 2023.

The Commonwealth of Massachusetts, the City of Springfield, MassMutual and MGM Springfield are jointly contributing $48.5 million in construction and permanent financing to the project. MassHousing is acting as funding administrator, on behalf of the public and private project partners.

The city of Springfield and the Springfield Redevelopment Authority have transferred ownership of the site to WinnDevelopment and Opal. The city of Springfield and the Springfield Redevelopment Authority completed approximately $4 million in environmental remediation work at 31 Elm St. prior to the conveyance of the project site. Other funding sources include $10.8 million in federal and state historic tax credit equity and a deferred developer fee. Bank of America is providing a total of $12.2 million in construction, bridge and permanent financing.