MassDevelopment has partnered with Clinton Savings Bank to provide $ 2,520,000 in loan financing to Summer Street Apartments, LLC, a subsidiary of Cougar Capital Management, which will use the proceeds to convert a former vacant rooming house at 41 Summer St. in downtown Leominster in 21 -tariff rental market.
Originally built in 1840, the building played an important role in the early industrial history of Leominster by housing workers from several factories in the area; it was previously owned by companies such as Prescott Comb Factory, Reed Toy Factory and Goodale Comb Company. Construction of the three-story building, which will include two one-bedroom units and 19 studios and micro-units, began in March 2021 and is expected to be completed by the end of the year.
“Adding affordable, market-priced housing to downtown Massachusetts is integral to addressing the housing shortage in the Commonwealth,” said Housing and Economic Development Secretary Mike Kennealy, chairman of the Board of Directors of MassDevelopment. “MassDevelopment’s long-standing partnerships with banks provide developers with financing opportunities that advance much-needed housing and spur continued economic development. “
“We are excited to play a small role as Clinton Savings Bank, developer Dan Botwinik and his team at Cougar Capital Management breathe life into another vacant building in downtown Leominster,” said Dan Rivera, President and CEO from the management of MassDevelopment. “Transformative projects like Mr. Botwinik’s work at 41 and 45 Summer Street are essential in addressing the housing crisis in our Commonwealth by providing quality housing at market prices to house the local workforce. and keep pace with demand.
Clinton Savings Bank provided a $ 2,120,000 construction loan to a permanent loan, while MassDevelopment provided a $ 400,000 bridging loan, backed by
$ 693,618 in Housing Development Incentive Program tax credits from the Massachusetts Department of Housing and Community Development that will be monetized when the project is completed. The project has also received historic state and federal tax credits, a tax exemption from Leominster, and leverages the Qualified Opportunity Zone program to make this renovation financially viable.
“Clinton Savings Bank is always looking for ways to partner with and support local organizations that are making a difference in our region to drive economic growth across Massachusetts,” said Len Anctil, senior vice president and head commercial loans from the Clinton Savings Bank. “The 21 market-rate rental units in downtown Leominster align with the bank’s mission to help build better housing in local communities, such as the Leominster Downtown Revitalization Project.
“This is exactly the kind of public-private partnership that will continue to make downtown Leominster a success,” said Leominster Mayor Dean Mazzarella. “We are particularly proud that this project not only brings additional residents to the city center, but [also] embraces Leominster’s past by preserving one of our historic buildings. With new housing, a new park, new businesses and the soon-to-be-completed rail trail, Leominster is becoming a real destination. Thanks to MassDevelopment, Clinton Savings Bank and Cougar Capital for investing in Leominster.
Owned and operated by Botwinik, Cougar Capital Management is a vertically integrated real estate company focused on acquiring underutilized properties and maximizing their potential through licensing, property development and management.
MassDevelopment has already supported another Cougar Capital Management project in Leominster. In January 2019, MassDevelopment provided $ 6 million in financing, including a $ 4.5 million construction-to-life loan and a $ 1.5 million bridge loan, backed by 1,740 $ 000 in HDIP tax credits, to help Cougar Capital Management redevelop WS Reed Toy and Manufacturing. Factory at 45 Summer St. in the Toy Factory Apartments.
The vacant old factory building now includes 36 rental units at market rates (both one bedroom and two bedrooms) with high ceilings, exposed brickwork, large windows, a rooftop terrace and solar panels . Construction was completed in September 2020 and all units were rented and occupied in January 2021. The Toy Factory Apartments were honored in June 2021 as the recipient of the Paul and Niki Tsongas Award from Preservation Massachusetts, an award that recognizes individuals and projects that promote the preservation of Massachusetts’ past.
“We are very excited about these projects on Summer Street in Leominster,” said Botwinik. “Tax credits and HDIP have made these renovations possible, and it has been great to work with the city, and we are grateful to our lenders, designers, contractors and everyone who came in day in and day out for continue to progress despite the challenges posed. by the pandemic. “